Do you know when a time limit is snatched on you? This sinking feeling that you should have started earlier, but now you are scratching frantiically to achieve things? Well, it is exactly how the tax season looks for most people. This is that an annual adult work you cannot escape, but no one really prepares you for it. The school did not teach you, your parents can still enter their old school methods and tax jargon? Full nightmare.
But the last minute terror attack should not take place to file your ITR. With a little plan, you can avoid receiving unnecessary stress, errors and, most, receiving a notice from the tax department. So, before you submit, let’s talk about the common mistakes that you can spend you, peace of mind, or both
Waiting till the last minute
We get it. Life is busy, and taxes feel as if you should worry about the future. But waiting for a time limit (usually 31 July, until extended) means running through the procedure, making errors, or disappearing from cuts that could save you money. In addition, if there is a mess on the Income Tax Portal, as thousands of other lays are also logging in, you are stuck in a digital queue with zero control.
The reality is that many people stop filing their taxes, and this is not a habit in which you want to fall. In the fiscal of 2023–24, only 6.68% of India’s population filed income tax returns. Certainly, some may not have taxable income, but a good part is either cutting it very close or leaving it completely, both can cause unnecessary stress and even punishment.
A pro tip will be to set a reminder in early July and complete it. Scratch at the last moment is not worth headache.
Choosing wrong ITR form
Getting under the wrong category is a classic crook mistake. The Income Tax Department has different forms based on your income sources. If you are a salaried employee with another major income, ITR-1 is your best condition. But if you have freelance gigs, stock market income or rental income, you may need to switch to ITR -2 or ITR -3. Getting under the wrong category can cause rejection, which means rebuilding the whole thing. Who else wants?
If you have already filed using wrong form, do not panic; You can correct your mistake by submitting revised returns under Section 139 (5) of the Income Tax Act. But be careful: If the error was deliberately done (says, by raising a wrong form by raising its income), the tax department can apply the penalty of 100% to 300% of the tax amount.
moral of the story? Take a minute to check what ITR form you really need, it is better to deal with tax headache later.
Tax deduction and exemption ignoring
If you are just looking at your salary and accepting visually tax liability, then you are probably paying more than your requirement. The government wants you to save money through deductions under classes such as 80C (PPF, EPF, Life Insurance, ELSS), 80D (health insurance), and 80E (education loan interest).
Then new tax regime vs. Old tax governance is a dilemma. If you have changed the jobs and do not know for whom your employer has chosen for, you can pay extra.
Enter the incorrect details
Even a small typo in your name, PAN, bank account number, or base can mess up things. And do not even think about fuuding numbers as the Income Tax Department already has data from your employer, bank and investment. Any mismatch, and you can get a friendly (or not-friend) notice.
Also, do not forget to verify your return. The filing is just one step. You have to e-present it within 30 days; Otherwise, it is as good as it has not been filed.
Forget to report all income
That fixed deposit interest? ₹ 500 Have you made to sell stock? The rent from that flat in your hometown? If you mention either of them, it is a red flag. IT department crosses data from banks, mutual funds and brokers. If they get something that you do not disclose, you can get a notice.
Getting taxes is not as scary as it seems, if you correct it. Take some time, use the online tool, and avoid these mistakes. Because worse than paying taxes is making extra payment for a silly mistake.
