ITR filing Error: Minute details you should not miss to e-file error-free return for AY 2023-24

itr filing error


Income Tax Return filing Errors AY 2023-24 (how to avoid): Taxpayers have been proactive this year in filing their returns early. According to Income Tax Department’s data, more than 3 crore returns for AY 2022-23 have been filed till July 18 while over 1.5 crore ITRs have been processed by the taxpayers. Tax filers have also verified more than 2.8 crore returns.

Experts have, however, noticed that tax filers often miss small details or make some minor mistakes, especially when filing by themselves, which either leads to defective returns or fewer refunds.

FE Money got in touch with some tax experts to understand the minute details taxpayers generally miss. Knowing these will help you file an error-free return before the due date, i.e. July 31, 2023.

Selection of Incorrect ITR Form

The taxpayer is required to consider furnishing their tax return in the correct ITR Form while taking into consideration their residential status, nature and level of income, etc.

Dr Suresh Surana, Founder of RSM India, a tax consultancy firm, says furnishing of return in the wrong ITR form may lead to the return being treated as defective and make the ITR invalid altogether.

Also Read: I got my refund in 26 days. How long it may take for you?

Mismatch in Form 26AS and AIS

“Taxpayers must thoroughly go through the AIS form and make sure they have included all sorts of incomes,” says Archit Gupta, CEO, Cleartax.

Dr Surana says a taxpayer discovering any discrepancies in AIS should provide feedback on the portal in order to rectify the same. In case of an error in form 26AS, the taxpayer should inform the deductor about the variation and request them to rectify the errors and omissions on their side. (read more details here)

Reporting income from equity, dividend income

“If they (taxpayers) deal in shares, it is important to include dividend income which has been credited to the bank account. Make sure bank details are mentioned accurately. And ensure, if you have loss from capital gains, that it is reported so that you can set it off against gains in future years. In case your total income is below the taxable limit, but you have faced some TDS deduction, do file your return to claim a refund,” says Gupta.

Also Read: Who should file a revised ITR? Is there a penalty?

Quoting incorrect personal details

Taxpayers should be careful while quoting Aadhar and correspondence details. “Further, special care should be taken while providing bank account number and IFSC code as mistakes while quoting bank details can delay income tax refunds,” says Dr Surana.

Disclosure of income and foreign assets

Taxpayers have to disclose income from all sources including interest and dividend earned, rental income from any property, gambling income, etc.

“The income must be disclosed irrespective of being taxable or exempt. Further, a taxpayer being a resident and an ordinary resident would be required to disclose all the foreign assets held by them (including financial interest in any foreign entity) and income earned from abroad,” says Dr Surana.

Also Read: Income Tax Return processing Time AY 2023-24: When will you get refunds?

Pre-validation of bank account

The taxpayer needs to prevalidate their bank accounts in order to receive Income Tax refunds.

Minute details you should not forget

Abhishek Soni, Co-Founder of Tax2win, says in order to file an error-free ITR, taxpayers should remember the following minute details:

● Provide accurate personal information (name, address, and PAN).
● Include all income sources and report them accurately.
● Claim eligible deductions and exemptions with proper documentation.
● Select the correct ITR form for your income sources.
● Provide accurate bank account details for tax refunds (validated bank a/c and PAN-linked accounts should be selected).
● Include all TDS details and cross-verify income with Form 26AS/AIS/TIS.
● Maintain records of tax payments made.
● Keep supporting documents for income, deductions, and exemptions.
● Review all details for accuracy and double-check calculations.
● If any form is required to claim exemption, ensure to file the same before ITR filing.
● File the ITR within the specified deadlines to avoid penalties.
● Ensure to E-verify the ITR within 30 days from the date of filing; otherwise, it will become invalid.

The due date to file ITR for AY 2023-24 for taxpayers whose accounts don’t need to be audited is July 31, 2023. If you haven’t filed yet, file now to avoid the last-minute rush and claim an early refund.


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