Top 10 Mistakes to Avoid While Filing Your ITR Online for FY 2024-25
- PRITI SIRDESHMUKH
- May 13
- 10 min read
Updated: May 14
Filing your Income Tax Return (ITR) online for FY 2024-25 might seem like a straightforward task, but many taxpayers make avoidable mistakes that can lead to errors, delays, or penalties. From selecting the wrong ITR form to overlooking essential details like bank information or TDS reconciliation, these mistakes can create unnecessary hassles. Let us explore the top 10 common errors made during ITR filing and practical advice on how to avoid them, ensuring that your return is filed accurately and on time. By staying informed about the latest updates and guidelines, you can complete the filing process with confidence and minimize the risk of mistakes that could otherwise cause complications.
Table of Contents
What are the Top 10 Mistakes to Avoid While Filing Your ITR Online?
Filing ITR online for FY 2024-25 can be a smooth process if done correctly, but there are several common mistakes that taxpayers often make. These include using the wrong ITR form, entering incorrect personal details or bank account information, failing to report all sources of income, and not reconciling TDS with Form 26AS. Additionally, many overlook the default new tax regime rules, which could lead to lost deductions, or make data entry errors like incorrect date formats. Missing income from previous employers or incorrectly filing Form 10IEA for presumptive taxation are also common pitfalls. Lastly, ignoring the latest compliance and threshold changes, such as revised TCS limits, can cause unnecessary delays or processing issues. Being aware of these mistakes and taking proactive steps can help ensure a hassle-free and accurate filing experience.
1. Filing with Incorrect or Outdated ITR Form
Choosing the correct ITR form is crucial to ensure your return is processed smoothly. The Income Tax Department has different forms depending on your income sources. For example, if you have income from business or profession, you should file ITR-3 or ITR-4. If you only have salary income, ITR-1 may be sufficient. Filing with the wrong form can lead to rejection of your return or, worse, it being considered defective. It's essential to thoroughly review the form requirements for the financial year before proceeding. For FY 2024-25, new forms have been introduced, simplifying the filing process for individuals with capital gains or business income. If you don’t use the appropriate form, your return might not reflect the correct tax calculations, leading to potential penalties or issues with your refund.
2. Entering Incorrect Personal Details
Entering your personal details correctly is one of the most crucial aspects of filing your ITR. Mismatched details such as your name, PAN, Aadhaar number, or address between your ITR and the official records can cause serious issues. A common problem is mismatching the name or PAN number, which could prevent the tax department from processing your return or issuing a refund. If the details don’t match the records held by the Income Tax Department, the processing of your ITR could be delayed, and you may not receive important tax notices or your refund on time. Always verify that your details are accurate and up-to-date in your tax profile before submitting your return.
3. Wrong or Incomplete Bank Account Details
Incorrect bank account details, including the wrong account number or IFSC code, are a frequent mistake in ITR filings. If these details are wrong or incomplete, your tax refund will be rejected or delayed, which could lead to unnecessary hassles. The bank account you provide in the ITR is where the tax department sends your refund, so it must be accurate. Ensure that the bank account is active and that the account holder's name matches the name on your PAN card. Double-check these details to ensure that there are no discrepancies. Also, with the introduction of new compliance rules, you are now required to report all your bank accounts for the year, not just the primary one. Failure to do so can further delay the processing of your refund.
4. Not Reporting All Sources of Income
Income from various sources, including savings account interest, fixed deposits, or side business income, must be reported in your ITR. Many taxpayers overlook reporting smaller sources of income, but even small amounts are taxable under the Income Tax Act. For instance, interest income exceeding ₹10,000 from savings accounts must be reported under "Income from Other Sources" and can be eligible for deductions under section 80TTA. Failing to report income can lead to under-reporting, triggering penalties and scrutiny from the tax department. It’s crucial to maintain a complete and accurate record of all income earned, including any income that may not have been taxed at the source, to ensure compliance and avoid any potential legal issues.
5. Ignoring the Default New Tax Regime Rules
From FY 2024-25, the new tax regime is the default option for taxpayers. Under this regime, taxpayers do not get exemptions or deductions available under the old regime, such as deductions under Section 80C, 80D, and others. If you prefer the old tax regime, you must explicitly opt for it when filing your return. Failing to do so can result in losing out on important deductions, which might increase your tax liability. Since the new tax regime offers lower tax rates but without deductions, it is crucial to assess whether opting for it over the old regime makes sense for your financial situation. Always verify the regime you are filing under to avoid paying more tax than necessary.
6. Incorrect Date Formats and Data Entry Errors
The Income Tax Department requires that all dates be entered in the specific format of DD/MM/YYYY. A simple mistake like entering the date as MM/DD/YYYY can lead to an incorrect filing, causing the return to be rejected. Similarly, errors in figures, such as incorrect numerical values or missing decimals, can cause significant problems. Data entry errors are one of the most common reasons for ITR rejection, and they can cause delays in your filing process. Before submitting your return, carefully review all data entries, especially dates, numbers, and text fields, to ensure that everything is correctly filled in.
7. Not Reconciling TDS and Income Details
Tax Deducted at Source (TDS) is a common method of tax collection. However, it’s essential to ensure that the TDS deducted and reported by your employer or other payers matches the income details in your ITR. This means you should cross-check your TDS certificates, such as Form 16 or Form 16A, with the pre-filled data available in your Form 26AS. If there is a mismatch between the TDS details in your return and the records in Form 26AS, it could lead to processing delays, notices, or even the rejection of your return. Always verify that your TDS entries match the details available in Form 26AS before submitting your return.
8. Failing to Report Income from Previous Jobs or Multiple Employers
If you’ve changed jobs during the financial year, you must report income from all employers. This is especially important if you’ve received a salary from multiple employers or switched jobs during the year. Many people make the mistake of reporting only the income from their current employer, leading to under-reporting of total income and potential penalties. Always ensure that the income from previous employers is included in your filing and that Form 16 or your salary slips from all employers are properly reflected in your ITR.
9. Not Filing or Incorrectly Filing Form 10IEA (for Presumptive Taxation)
For taxpayers opting for presumptive taxation under Section 44ADA or 44AE, it is mandatory to file Form 10IEA to declare their intent. The form must be filed correctly, and any errors here can delay your ITR processing. Form 10IEA is crucial for businesses or professionals who opt for a presumptive income scheme, as it allows them to report their income under a fixed rate rather than keeping detailed books of accounts. Failing to file this form or incorrectly filling it out can lead to delays and errors in your ITR submission.
10. Ignoring New Compliance and Threshold Changes Effective FY 2024-25
The Union Budget 2025 brought in several changes that can impact your ITR filing for FY 2024-25. For example, new thresholds for TCS (Tax Collected at Source) have been introduced, such as the revised limit for remittances under the Liberalized Remittance Scheme (LRS) being increased to ₹10 lakh. Ignoring these updates or not taking them into account during your filing could result in incorrect calculations and compliance issues. Staying up-to-date with the latest amendments, including new tax slabs, exemptions, and compliance rules, is essential for avoiding mistakes that could delay or complicate your ITR processing.
Conclusion
Avoiding these common mistakes will help ensure that your ITR filing is smooth and error-free, saving you from unnecessary delays or penalties. By keeping track of the latest updates in tax laws and staying meticulous with your data, you can file confidently and accurately, ensuring compliance and maximizing your eligible refunds.
FAQs
1. What is the new tax regime for FY 2024-25?
The new tax regime for FY 2024-25 is designed to offer lower tax rates while eliminating many exemptions and deductions available under the old regime. It is the default tax regime, meaning that unless you choose the old regime, the tax calculations will follow the new structure. Key features of the new regime include reduced tax rates across various income slabs but no exemptions such as those under Section 80C, 80D, and other similar sections. The new regime aims to simplify tax filings but may not be beneficial for everyone, especially those who regularly claim deductions.
2. How do I select the correct ITR form?
Selecting the correct ITR form is essential for accurate filing. The form you choose depends on your sources of income. For instance, if you have income from salary, pension, or a single house property, you can use ITR-1. However, if you have income from business or profession, capital gains, or foreign assets, you may need to file ITR-2, ITR-3, or ITR-4. Always ensure that you review the requirements for each form and select the one that aligns with your income type to avoid issues with your filing.
3. Why is it important to update my personal details in the ITR?
Your personal details, such as your name, PAN, Aadhaar number, and address, must match the official records to ensure smooth processing of your ITR. Mismatches in these details can cause significant issues, such as delays in processing, missed refunds, or even rejection of your return. It's critical to ensure that your details are up-to-date in both your ITR and the Income Tax Department's database before filing to avoid complications.
4. Can I change my bank account details after filing my ITR?
Once your ITR is filed, you cannot change the bank account details for refund purposes directly. If you need to update your account information, you would have to revise your return. However, if your refund has not been processed yet, you can make a correction by filing a revised return with the updated bank account details. It's always recommended to double-check the bank account details before filing to avoid any delays.
5. What happens if I forget to report income from my previous job?
If you forget to report income from a previous employer, it leads to under-reporting of your total income, which could result in penalties or legal action. The Income Tax Department may notice the discrepancy during processing, and you may be issued a notice. It's important to report income from all sources, including any past employers, to ensure accurate and comprehensive tax reporting. If you realize this mistake after filing, you can file a revised return to include the missed income.
6. How do I file Form 10IEA for presumptive taxation?
Form 10IEA is used for taxpayers who opt for presumptive taxation under Section 44ADA (for professionals) or Section 44AE (for businesses). To file this form, you must declare your intent to adopt the presumptive taxation scheme. The form is available for filing online through the Income Tax Department’s portal. Ensure that you fill out the form accurately and submit it before filing your ITR. Incorrect filing of Form 10IEA can delay your ITR processing.
7. What should I do if my TDS details don't match my income?
If your TDS details do not match the income reported in your ITR, it could cause issues such as delays in processing your return or the issuance of notices by the Income Tax Department. Always verify your TDS details in Form 26AS before filing your return. If there is a discrepancy, contact the deductor (e.g., employer or bank) to correct the TDS records. You may also revise your return if the discrepancy is noticed post-filing.
8. How can I check if I selected the correct tax regime?
You can check if you have selected the correct tax regime by reviewing the details in your ITR form. The new tax regime is the default option, but you must explicitly choose the old tax regime if you want to avail of deductions under sections like 80C, 80D, and others. While filing, ensure that the tax regime selected reflects your preference. If you miss this step, it could result in a higher tax liability due to the loss of deductions.
9. What are the consequences of filing with outdated ITR forms?
Filing with outdated ITR forms can result in your return being rejected, as the Income Tax Department updates the forms to align with new tax rules and processes each year. Additionally, using incorrect forms can lead to tax miscalculations and potential penalties. Always ensure you are using the correct and latest form for the financial year in question, as per the guidelines issued by the Income Tax Department.
10. Are there any changes in TCS for FY 2024-25?
Yes, the Budget 2025 introduced revisions in TCS (Tax Collected at Source) thresholds for FY 2024-25. For example, the threshold for TCS on remittance under the Liberalized Remittance Scheme (LRS) was raised to ₹10 lakh. These changes affect how taxes are calculated and collected on certain transactions, and it is important to stay updated to avoid errors in filing and compliance.
11. How can I avoid data entry mistakes while filing my ITR?
To avoid data entry mistakes, always double-check the numbers, dates, and personal details you input into your ITR form. Use the pre-filled data provided by the Income Tax Department where possible, and carefully compare it with your financial records, such as Form 16 and Form 26AS. Ensuring that there are no typographical errors or incorrect formats can help prevent the rejection of your ITR or processing delays.
12. Where can I find the latest updates on ITR filing rules?
For the most up-to-date information on ITR filing rules, you can refer to the Income Tax Department's official website, where all circulars, notifications, and guidelines are published. Additionally, platforms like TaxBuddy offer the latest updates, step-by-step guidance, and tools to simplify tax filing, ensuring that you comply with the most recent rules. TaxBuddy also provides helpful resources and FAQs to make the process more straightforward for taxpayers.
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