ITR: Avoid Mismatch Between TDS Claimed And Form 26AS

Report all sources of income, including dividend and interest earnings

- BINDISHA SARANG

Over 35.8 million taxpayers had filed their income-tax returns (ITR) by July 19, 2024, according to the Income-Tax (I-T) Department. About 67.7 million ITRS were filed last year.

As the July 31 deadline approaches, the pace of ITR filing will increase. It is crucial that this annual exercise is carried out carefully, as errors or incorrect information can lead to penalties or legal issues. Here are some common mistakes that tax filers must avoid:

Selecting wrong ITR form

Taxpayers must use the right ITR form.

"If a taxpayer selects the wrong ITR form, their return will be deemed defective or invalid. Consequently, they will be subject to the same interest and penalties as those who fail to submit their return before the specified due date (under sections 234A and 234F of the I-T Act)," says Suresh Surana, a Mumbai-based chartered accountant.

Not checking Form 26AS

Form 26AS contains details of all taxes deducted or collected at source against a taxpayer's Permanent Account Number (PAN).

If there is any discrepancy in the Tax Deducted at Source (TDS) shown in Form 26AS, the taxpayer must inform the tax deductor and get it rectified.

"The I-T Department, while processing ITR, relies on Form 26AS to give TDS credit. It may only allow the benefit of TDS claim if it is shown in Form 26AS," says Rahul Singh, deputy general manager, Taxmann.

Not reporting all income sources