Correctly filing your income tax return (ITR) is essential for both legal compliance and financial transparency. For salaried people making up to ₹50 lakhs, filing an ITR 1 is one of the easiest options available. Nevertheless, despite its simplicity, a lot of taxpayers make careless errors that could result in a notice from the IRS or the return being rejected. You can learn how to steer clear of these typical problems while completing your ITR 1 filing from this post.
Choosing the wrong ITR form
Selecting the incorrect ITR form is one of the most common mistakes. ITR 1 filing is intended for residents who make money from:
Pension or salary
One residential property
Additional sources of income (not including lottery or racehorse profits)
ITR 1 filing is not required if you have overseas assets, capital gains, or income beyond ₹50 lakhs.
Inconsistency in Income Information
Before beginning the ITR 1 filing process, always double-check your Form 16, Form 26AS, and Annual Information Statement (AIS). Tax notices or scrutiny may result from a discrepancy in reported income.
Ignoring Interest Income Declarations
The majority of people neglect to report interest income from recurring deposits, fixed deposits, and savings accounts. This is taxable and needs to be reported under Income from Other Sources on ITR 1.
Ignoring Exemptions and Deductions
The Income Tax Act permits a number of deductions under sections 80C through 80U. Many taxpayers miss out on possible refunds because they don’t claim these. Typical deductions consist of:
80C: Investments such as LIC, ELSS, PPF, and so on.
80D: Premiums for health insurance
80TTA: Up to ₹10,000 in interest on savings accounts
When filing your ITR 1, be sure to claim all of your allowed deductions.
Providing False Personal Information
Errors in contact information, IFSC code, bank account number, or PAN can cause problems with verification or postpone refunds. Before filing the return, always make sure your personal information is correct.
Neglecting to Confirm the Return
Verifying the return online (using Aadhaar OTP, net banking, etc.) or by mailing a signed ITR-V form to CPC, Bengaluru, is crucial after completing ITR 1 filing. Returns that have not been confirmed are deemed void.
Failing to Report Every Bank Account
Taxpayers are required to report all active bank accounts (except from dormant ones) as of AY 2015–16. Failure to do so at the time of ITR 1 filing could lead to non-compliance.
Not meeting the deadline for filing
Penalties under Section 234F may result from filing delays. Additionally, you might not be able to claim refunds or carry forward some losses if you file after the deadline.
Ignoring errors in pre-filled data
To make submitting an ITR 1 easier, the Income Tax portal provides pre-filled data. However, as this data might not always be current or comprehensive, always double-check its accuracy.
Not Filing on Reliable Platforms
You may be sure that your ITR 1 filing will be correct, guided, and hassle-free by using a reliable and user-friendly platform like Karsaathi.
In conclusion
ITR 1 filing is simple, but even minor mistakes can have serious consequences. You can guarantee a seamless and error-free ITR filing process by closely reviewing information, confirming income sources, claiming qualified deductions, and utilizing a reputable filing site. To be compliant and stress-free throughout tax season, always carefully examine your return before filing.