Filing your ITR as a salaried employee? Avoid these common income tax return mistakes that could lead to delays, penalties, or reduced refunds.
As a salaried taxpayer, filing your Income Tax Return (ITR) is simple, yet most people still make careless mistakes that result in notices, delayed refunds, or missed deductions. Form 16 overuse and omission of specific income are minor mistakes with significant ramifications. Here are some advice on how to avoid the most common blunders made by salaried taxpayers as the deadline approaches.
ITR Form 16 reliance without verification
The majority of workers believe that Form 16 contains all of their income information. Despite being a crucial record that your company provided, it can be excluding other sources of income, such as capital gains, rent, or bank interest. To ensure that all of your income is accurately shown, always double-check your Form 16 with Form 26AS and AIS.
Failure to include interest income
Even if tax at source has not been withheld, interest generated on savings accounts, recurring deposits, or fixed deposits must be recorded and is subject to tax. The taxpayers disregard small interests because they believe they are excluded. Although Section 80TTA allows for a deduction of up to ₹10,000 for interest earned on a savings account, the income must be recorded before the deduction can be taken.
Filing with defective ITR form
If you file a return using a flawed ITR form, it might not be accepted. Filing ITR-1 is not permitted for salaried individuals who earn income from capital gains or from the income of two or more residential properties; instead, they must file ITR-2. Before submitting, carefully review each form’s eligibility requirements.
Failure to include exempt income
Certain revenues, such interest on tax-free bonds, HRA (House Rent Allowance), and LTA (Leave Travel Allowance), are exempt but still need to be reported under the “Exempt Income” section of the ITR form. Not reporting them will result in discrepancies during processing or verification, but it will not impact your tax outflow.
Leaving out deductions or deduction without proof
Due to insufficient documentation, the maximum number of people are missing deductions under Sections 80C, 80D, or 80G. Additionally, some people make deduction claims without supporting documentation. In the event of a return option for examination, keep accurate receipts or payment vouchers for all deductions, including life insurance premiums, ELSS investments, and health insurance.
Ignoring verification after filing
Since most salaried taxpayers e-file their returns without authenticating them using Aadhaar OTP, net banking, etc., their ITR returns are not filed until they are authenticated. If your return is not authenticated within 30 days of e-filing, it will be deemed invalid and will not be processed, which could result in further problems.
A bit of care can avert a lot of problems
For salaried people, timely submission of accurate and comprehensive ITR is essential for expedited processing, prompt reimbursements, and hassle-free peace of mind. Check your information, disclose all sources of income, complete the appropriate form, and select verification on time. To stay in compliance and avoid receiving needless letters from the tax collector, take a few minutes to exercise prudence.
Looking for the India latest news, tech, automobiles, and travel tips? Head over to https://innovativeschools.in/ for top stories, smart insights, and everything you need—all in one place.