Taxpayers beware! These 9 ‘small mistakes’ can bring income tax notice, check before filing ITR

Are you afraid of getting income tax notice? Believe me, you are not alone! As soon as the name of tax filing comes, many people emerge on the foreheads. Often people inadvertently make such mistakes, due to which notice can come from the Income Tax Department. The good news is that if you already know about these mistakes, you can avoid them and file your ITR with peace.

The Income Tax Department has underlined 9 such major reasons due to which taxpayers can get notice. Come, let us understand them one by one and know how to avoid them:

1. Not filing income tax returns (ITR): This is the most common and serious mistake. If your income comes under tax and you do not file your ITR within the stipulated time, then notice is sure to be received.

   • What to do: Be sure to file ITR within the fixed time frame (which is usually 31 July, but can change according to the financial year).

2. Do not choose the right ITR form: There are different ITR forms according to sources and types of income (eg ITR-1, ITR-2, ITR-3 etc.). Choosing wrong form can make your return defective.

   • What to do: According to your sources of income (salary, house rent, business, capital gains etc.), choose the correct ITR form.

3. Giving wrong or incomplete information: This is the biggest mistake. Not giving correct information about income, claiming wrong deduction or filling the information of bank accounts wrong.

   • What to do: Fill the ITR only by cross-checking all financial information like your salary slip, Form 16, 26AS and AIS.

4. Hiding High-Value Transactions: Banks and other financial institutions inform the department about your big transactions, such as cash deposits in a savings account of more than 10 lakhs in a financial year, purchase/sales of immovable property worth more than 30 lakhs, a large amount of money spent on credit cards etc. If you do not give their information, notice can come.

5. Not giving information about all sources of income: If you have many sources of income, such as salary, freelancing income, rental income, profit from stock market or income from interest, and you forget to show any one, then notice can come.

6. Not matching information from Form 26AS/AIS: This is like your tax passbook, which contains details of all your tax deduction (TDS) and financial transactions. If the information filled in your ITR does not match it, the notice may come.

7. Filing ITR more than once: Sometimes in nervousness or by mistake people file ITR twice for the same assessment year. This creates confusion and can bring notice.

   • What to do: If I have filed an ITR once and there is any mistake in it, then file revised ITR (revised return), not another new return.

8. Not giving information about foreign property or income: If you have any property abroad, have foreign bank accounts or you are having any income from abroad (eg dividend, rent), and you do not give it to ITR, then it is a serious mistake.

9. Decided gift or undeclared income: The department is eyeing the large gifts (more than Rs 50,000) or any other undeclared income (which you have not recorded as income) from sources other than relatives.

Your safety shield: A little caution and correct information can protect you from these notices. Collect all your documents before filing ITR, cross-check them, and if necessary, seek the advice of a tax expert. Be cautious, be safe!