Common Mistakes to avoid in salary ITR Filing Mistakes
As the ITR season gains pace, it’s crucial for salaried professionals to be vigilant while filing their returns. A small oversight today could lead to notices, penalties, or missed refunds tomorrow. Based on practical insights from numerous cases, here are some frequent (and costly) errors made while filing salary-based Income Tax Returns:
1. Omitting Income from Previous Employers
If you’ve switched jobs during the year, ensure that income from all employers is disclosed-even if TDS was deducted. The tax department sees your full picture via Form 26AS and AIS.
2. Disregarding Interest and Other Passive Income
Income from savings accounts, FDs, or tax refunds is often overlooked. While interest up to ₹10,000 is exempt under Section 80TTA, anything beyond that is taxable and must be reported.
3. Failure to Claim Eligible Exemptions/Deductions
House Rent Allowance (HRA), Leave Travel Allowance (LTA), Standard Deduction, and deductions under 80C/80D are frequently missed due to lack of documentation or awareness.
4. Mismatch Between Form 16 and Form 26AS/AIS
Always reconcile TDS as reported by your employer (Form 16) with Form 26AS and AIS on the Income Tax Portal. Inconsistencies may trigger scrutiny or demand notices.
5. Choosing the Inappropriate Tax Regime
Choosing between the old and new tax regimes without comparative calculation can lead to suboptimal tax liability. Use available calculators or consult a professional before deciding.
Additional Pointers:
Review your salary structure (e.g., perquisites, allowances) to see if any component can be tax-optimized.
Don’t ignore stock options or gratuity payments-they could alter your tax liability significantly.
If you’ve received arrears or bonuses, consider filing Form 10E to claim relief under Section 89(1).
Always verify your return after submission-it’s not considered valid unless verified.
Tip:
Download Form 26AS and Annual Information Statement (AIS) well in advance. Cross-check all reported incomes, TDS, and high-value transactions to ensure nothing is missed or misreported.
