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One of the most important tasks of the financial year i.e. the deadline for filing Income Tax Return (ITR) is fast approaching. For all taxpayers as per rules 31st July It is absolutely mandatory to file your ITR by. Tax and financial experts clearly say that taxpayers should not wait for the last date or last days to file returns. The biggest reason for this is that due to haste at the last moment, the chances of making mistakes while filing returns increases manifold. If you file wrong returns, hide your income or do not disclose income from any source in the form, you may have to face huge legal and financial difficulties later.
Now instead of human eyes, AI will catch your every theft
Experts say that taking ITR filing lightly this time may prove costly. The strong reason for this is that the Income Tax Department is now using modern and sophisticated technology like Artificial Intelligence (AI) for scrutiny of tax returns. After this digital upgradation, even the smallest discrepancy or mistake made in your returns will be immediately caught by the software. If any major loophole or discrepancy is found in your return during AI scrutiny, the department will generate a notice directly to you without any human intervention. According to experts, there are 5 common mistakes made by taxpayers, which directly lead to income tax notices:
1. Giving wrong or incomplete information about income
Before submitting the income tax form, every taxpayer should calculate his total annual income accurately. For this you have to Form 16 and AIS (Annual Information Statement – AIS) Like important government documents must be matched.
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Frequently missed income: If you have made any capital gains from the stock market or property, or received interest on deposits in your bank accounts, it is mandatory to show the same in the ITR. If the income declared by you and the data available with the department does not match, a notice is sure to come.
2. Claiming wrong deduction in order to save tax
Under the old income tax regime, various types of deductions are allowed to reduce the tax burden. Many times taxpayers claim wrong deductions by showing fake investments to reduce their tax liability to zero or less. Experts strongly recommend that you claim only that exemption to which you are actually entitled and for which you have solid documentary proof (receipt or certificate).
3. Taking advantage of HRA by issuing fake receipts
Employed people save their tax to a great extent through House Rent Allowance (HRA). But the Income Tax Department has now made the rules for HRA claim very stringent. To take advantage of HRA, you have to PAN of the landlord, his/her complete address and proper rent receipt Have to give. If a taxpayer resorts to fake rent agreements or fake receipts to save tax, the AI tools will immediately cross-verify it with the landlord’s PAN data and a penalty notice will be sent directly as soon as the discrepancy is found.
4. Mismatch of TDS amount
Many times it happens that your company or employer deducts TDS (Tax Deducted at Source) from your salary, but does not credit it to the government account on time or files a wrong return. In such a situation, TDS mismatch appears in your Form 16 and the data available with the tax department. To avoid this, before filing the return, carefully check the TDS amount recorded in your Form 26AS and Form 16. If there is any discrepancy, contact your employer immediately to get it corrected.
5. Hiding high value transactions (large transactions)
If you have done any big financial transaction (High Value Transaction) within the concerned financial year, then it is very important to open its horoscope in ITR. Always remember these limits set by the Income Tax Department:
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Cash Deposit: Depositing cash of Rs 10 lakh or more in a bank account in any one financial year.
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Credit Card: Making purchases or payments of more than Rs 2 lakh in a year through credit cards.
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Mutual Fund/Share: Investing Rs 2 lakh or more in mutual funds or equity market.
All banks and financial institutions of the country send information about these big transactions directly to the tax department. Therefore, if you do not provide details of these transactions in your ITR, it will be considered as deliberate concealment of information and the department will immediately issue a notice to you seeking clarification. The only way to remain happy and stress free is to file your accurate ITR with full honesty and on time.
