Filing ITR for FY2024-25? Avoid These 7 Common Mistakes in HRA Claims, Capital Gains, and More – Corpzo.com

As the Income Tax Return (ITR) submission season for Financial Year (FY) 2024-25 commences, it is essential for taxpayers to be vigilant and avoid common pitfalls that can result in notices, penalties, or behind schedule refunds. The Income Tax Department has prolonged the submitting closing date to September 15, 2025, to house considerable structural changes introduced in Budget 2024 . Despite this extension, taxpayers ought to ensure accuracy of their filings.

Here are seven critical mistakes to steer clean of when filing your ITR for FY2024-25:

1. Selecting the Incorrect ITR Form

Choosing the perfect ITR shape is fundamental. For example, salaried individuals with earnings as much as ₹50 lakhs should use ITR-1, at the same time as those with capital gains or overseas assets should choose ITR-2 . Using the incorrect form can render your go back faulty, main to processing delays or rejection.

2. Neglecting Budget 2024 Updates

Budget 2024 delivered structural modifications to ITR bureaucracy and tax policies. Failing to incorporate those updates can result in inaccuracies on your go back . Stay informed about the latest provisions to make certain compliance.

3. Overlooking AIS and Form 26AS

The Annual Information Statement (AIS) and Form 26AS offer complete info of your financial transactions and tax deductions. Discrepancies among these documents and your ITR can cause scrutiny from tax government . Always reconcile your ITR with those statements earlier than submission.

4. Failing to Report All Income Sources

It's vital to disclose all income assets, along with:

Interest from financial savings accounts and glued deposits

Rental earnings

Capital profits from investments

Income from previous employers

Omitting any profits can result in consequences or felony actions .

five. Incorrect HRA Claims

House Rent Allowance (HRA) claims are regularly scrutinized. Common mistakes include:

Quoting an wrong PAN in your landlord

Claiming HRA with out legitimate rent receipts or condominium agreements

Such errors can raise crimson flags and result in notices from the tax department .

6. Misreporting Capital Gains

Capital profits from the sale of assets like shares or property must be accurately reported. Misclassifying those gains or failing to reveal them can result in incorrect tax calculations and capability audits .

7. Not Verifying the ITR

After filing your ITR, verification is obligatory inside 30 days. Failure to verify renders your return invalid. Verification may be performed electronically via Aadhaar OTP, net banking, or by using sending a signed physical replica to the Centralized Processing Centre (CPC) .

Additional Tips:

Update Personal Information: Ensure your e mail and mobile quantity are cutting-edge to receive well timed communications from the Income Tax Department.

Disclose Exempt Income: Even if positive earning are tax-exempt, consisting of agricultural earnings, they have to nevertheless be suggested for your ITR .

Report All Bank Accounts: List all active bank accounts, which include those closed in the course of the monetary year, to comply with disclosure necessities .

Maintain Accurate Records: Keep thorough documentation of all economic transactions, deductions, and investments to help your claims in case of scrutiny.

Conclusion

Filing your ITR correctly and timely is essential to avoid consequences and ensure a clean tax experience. By being vigilant about these commonplace errors, you could protect your self in opposition to potential issues. For personalised help and expert guidance on ITR filing, go to Corpzo.Com.