Last year, Suresh, who is a salaried professional, filed his Income Tax Return just a few days before the deadline. Call it negligence, or name it inadequate knowledge, he missed out reporting some key information like interest earned from his fixed deposit and verifying the bank account number. A few weeks later he got a notice from the tax department to rectify his errors. This led to delay in his refund, filing the details again, un-necessary paperwork and stress. This simple mistake could have been easily avoidable had Ramesh maintained accuracy and attention.
Legally everyone having a taxable income is required to file ITR. Be it salaried professionals, entrepreneurs, or freelancers. So it becomes important that you do not repeat mistakes like the one made by Ramesh. Taking precaution will save you from stress, unnecessary refiling and save you a lot of time.
Here’s what you should keep in mind:
- Know the Applicable ITR Form
There are different ITR forms for different purposes. For salaried individuals, it is ITR 1. Business owners and professions must choose ITR-3 or ITR 4. An incorrect form will make your returns invalid. So you must choose the correct form as the first step.
- Verify Personal and Financial Details
You must check that all your personal details are correct. Check for PAN, Aadhaar, your bank details and your contact information. If you have errors at this stage, the refund process will be delayed.
- Reconcile Income with Form 26AS and AIS
You must compare your details of your income with Form 26AS and AIS. This will show the income and the tax details as reported to the tax department. If there are mismatches here, you might get a notice from the tax department.
- Report All Sources of Income
Everyone is expected to be honest while filing their taxes. You must include income that you earn from different sources. Let us say you have a saving interest, or fixed deposit or you get rental income, or you do freelance and you get income from there, please disclose all these income. Failure at this stage could potentially invite notice.
- Claim Deductions and Exemptions Properly
While filing tax, there are many exemptions. You must look at them and take advantage. You are eligible to claim for deductions like the investments you have made under 80C (PPF, NPS, Tax saving mutual funds etc), 80 D (medical insurance), deduction for home loan etc. These exemptions allow you to reduce your taxable income to an extent.
- Pay Outstanding Tax Before Filing
You must ensure that if you have any unpaid tax that you were supposed to pay earlier but you haven’t paid till date, you must clear that outstanding amount first. If you have unpaid tax, your ITR will be invalid.
- File Before the Deadline
Many individuals wait for the last hour to pay the tax. This often results in missing the deadline, or filing incorrect details. Usually the deadline is July 31 (unless extended) This year the deadline is September 15.
- Verify Your ITR After Filing
As a final process, you are required to electronically verify your Aadhaar OTP. Without verifying, your ITR isn’t valid
Conclusion
Many individuals like Ramesh learn their lessons a hard way when they receive a notice from the Tax Department. But you don’t have to. Be careful, choose the correct form, verify your details and file on time. Wish you a stress free ITR filing experience.
FAQs on Income Tax Return (ITR) Filing
Q1. Who is required to file an Income Tax Return (ITR)?
Everyone having taxable income must file ITR. This includes salaried professionals, entrepreneurs, freelancers, and business owners. Even if your income is below the exemption limit, filing ITR can be beneficial for future loans, visas, and record-keeping.
Q2. Which ITR form should I use?
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ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh.
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ITR-2: For individuals with income from salary, house property, capital gains, or foreign income but not from business.
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ITR-3: For individuals earning from business or profession.
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ITR-4 (Sugam): For individuals with presumptive income from business/profession.
Choosing the wrong form can make your return invalid.
Q3. What happens if I don’t report all sources of income?
Failure to disclose savings interest, FD interest, rental income, freelance earnings, or any other source may lead to notices from the Income Tax Department, penalties, and delayed refunds.
Q4. How can I verify that my income details are accurate?
Reconcile your income with Form 26AS and AIS (Annual Information Statement). These forms reflect income and tax details reported by banks, employers, and institutions. Any mismatch can trigger scrutiny.
Q5. What deductions and exemptions can I claim?
You can reduce taxable income through various deductions such as:
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Section 80C: Investments in PPF, ELSS, NPS, tax-saving FDs, etc.
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Section 80D: Health insurance premium.
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Home Loan: Interest on housing loan.
Claiming these properly helps in saving taxes legally.
Q6. Why is it important to pay outstanding taxes before filing ITR?
If you have unpaid taxes, your ITR will be treated as invalid. Always clear pending dues before submitting your return to avoid penalties.
Q7. What is the deadline for filing ITR in 2025?
Generally, the due date is July 31, unless extended by the government. For 2025, the extended deadline is September 15. Filing after the deadline may attract late fees and interest.
Q8. Is it necessary to verify ITR after filing?
Yes. Your ITR is not valid until you e-verify it using Aadhaar OTP, net banking, or by sending a signed physical copy to CPC Bengaluru.
Q9. What are the common mistakes to avoid while filing ITR?
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Selecting the wrong ITR form.
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Entering incorrect PAN, Aadhaar, or bank details.
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Missing out on reporting all income sources.
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Not reconciling with Form 26AS/AIS.
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Forgetting to claim eligible deductions.
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Filing after the deadline.
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Not verifying the return after submission.
Q10. What happens if I file incorrect details in my ITR?
You may receive a notice from the tax department, which could lead to rectification, re-filing, penalties, delayed refunds, and unnecessary stress.
Q11. Can I revise my ITR if I made a mistake?
Yes. If you realize an error after filing, you can file a revised return before the due date of revision (currently December 31 of the assessment year). This helps correct mistakes like wrong income details, missed deductions, or incorrect bank details.
Q12. What documents should I keep ready before filing ITR?
You should collect:
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Form 16 (for salaried employees).
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Bank statements.
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Form 26AS & AIS.
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Investment proofs for deductions (PPF, LIC, ELSS, etc.).
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Details of home loan or education loan.
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Capital gains statement (if applicable).
Keeping these handy avoids mistakes.
Q13. What if I miss the ITR filing deadline?
If you miss the deadline, you can file a belated return before December 31 of the assessment year. However, you may have to pay a late filing fee under Section 234F (up to ₹5,000) and interest on tax due. Also, some deductions may not be allowed in a belated return.
Q14. Is filing ITR mandatory even if my employer has deducted TDS?
Yes. Even if TDS is deducted, you must file ITR to report total income, claim excess TDS refund, and declare other income sources (FD, rent, freelance, etc.).
Q15. Can I file ITR if I don’t have taxable income?
Yes, you can voluntarily file ITR even if your income is below the exemption limit. It helps in:
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Maintaining financial records.
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Claiming TDS refunds.
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Easier loan/visa approvals.
Q16. How long does it take to get an income tax refund?
Refunds are usually processed within 7–30 days after successful filing and verification. Delays may occur if there are errors in bank details or mismatches in income reported.
Q17. What are the penalties for giving false information in ITR?
If found guilty of misreporting or hiding income, penalties can be 50% to 200% of the tax due, along with possible prosecution in extreme cases.
Q18. How do I check the status of my ITR filing?
You can log in to the Income Tax e-filing portal and check:
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ITR filing status.
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Refund status.
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Pending actions, if any.
Q19. Do NRIs (Non-Resident Indians) have to file ITR in India?
Yes, NRIs must file ITR if they earn income in India (salary, rent, capital gains, or interest). They can claim relief under DTAA (Double Taxation Avoidance Agreement) if applicable.
Q20. What precautions should I take before submitting ITR?
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Double-check PAN, Aadhaar, and bank account details.
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Reconcile TDS with Form 26AS.
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Report all income, even small amounts.
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Attach investment proofs if required.
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E-verify immediately after filing.
Q21. What is Form 26AS and why is it important?
Form 26AS is a consolidated tax statement that shows the tax deducted at source (TDS), advance tax, and self-assessment tax paid. Comparing your income with Form 26AS helps avoid mismatches with the Income Tax Department.
Q22. What is AIS (Annual Information Statement)?
AIS is a detailed statement introduced by the Income Tax Department that includes your financial transactions like savings account interest, FD interest, securities, mutual fund investments, etc. Reconciling your income with AIS ensures accuracy.
Q23. Can I file ITR without Form 16?
Yes. Even without Form 16, you can file your ITR using salary slips, bank statements, and Form 26AS to calculate your taxable income and TDS.
Q24. What is e-verification in ITR filing?
After filing, you must verify your return within 30 days. You can do this via Aadhaar OTP, Net Banking, EVC, or by sending a signed ITR-V to CPC Bengaluru. Without verification, your return will not be processed.
Q25. Can I claim a refund for excess TDS deducted?
Yes, if TDS deducted is more than your actual tax liability, you can claim a refund by filing ITR. The refund will be directly credited to your bank account after processing.
Q26. Is it compulsory to link PAN with Aadhaar for ITR filing?
Yes. Linking PAN with Aadhaar is mandatory. Without this, you cannot file ITR, and your PAN may become inoperative.
Q27. How do I pay self-assessment tax before filing ITR?
You can pay self-assessment tax online through Challan 280 on the Income Tax e-filing portal or authorized banks. Always enter correct PAN and assessment year.
Q28. Can I correct bank account details after filing ITR?
Yes. If you entered wrong bank details, you can update them on the Income Tax e-filing portal under ‘Profile’ and re-validate to ensure smooth refund processing.
Q29. What is the difference between Old Tax Regime and New Tax Regime?
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Old Regime: Higher tax rates but allows multiple exemptions and deductions (80C, 80D, HRA, etc.).
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New Regime: Lower tax rates but minimal deductions allowed.
Taxpayers can choose whichever is more beneficial each year.
Q30. Do I need to disclose foreign income or assets?
Yes. If you are an Indian resident, you must report all global income and assets. Non-disclosure may attract heavy penalties under the Black Money Act.
Q31. Can I file ITR for previous years?
You cannot file a normal return for years where the deadline has passed. However, in special cases, you can file an updated return (ITR-U) for the past two assessment years by paying additional tax.
Q32. What is ITR-U (Updated Return)?
ITR-U allows taxpayers to update income if missed earlier. It can be filed within 24 months from the end of the relevant assessment year, but with additional tax liability.
Q33. How long should I keep ITR records?
It’s recommended to keep ITR copies, computation, and proofs for at least 6 years, since the tax department can reopen assessments within that period.
Q34. Is it necessary for students to file ITR?
Yes, if a student’s income (from part-time jobs, freelancing, or investments) exceeds the basic exemption limit, they must file ITR.
Q35. Can senior citizens get exemption from filing ITR?
Senior citizens (above 60 years) and super senior citizens (above 80 years) must file ITR if their income crosses the exemption limit. However, they enjoy higher basic exemption compared to others.
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