Mistakes in ITR filing: Income taxpayers should accurately report income and claim eligible deductions to avoid trouble with the tax department. When you file your tax return, you are expected to report your income accurately and claim deductions and exemptions that you are eligible for based on the applicable tax laws. Wrongfully claimed deductions can lead to penalties and criminal charges. Tax authorities can take legal action if discrepancies are found.
Deductions and exemptions not supported with actual transactions and supporting proofs should not be claimed, said Archit Gupta, Founder and CEO, Clear.
Additionally, if you intentionally claim deductions or exemptions that you are not entitled to, it can be considered tax evasion and may result in penalties, fines, and even criminal charges.
This can land the taxpayer in trouble, due to short reporting of income or wrongfully claimed deductions.
“Under Section 270A, misreporting of income attracts a penalty of 200% of the tax sought to be evaded, subject to certain conditions,” said Abhishek Soni, Co-founder & CEO of Tax2win.
Tax authorities have the right to process your tax return and verify the accuracy of the information provided. If they discover any discrepancies or false claims, they can take legal action against you.
“The taxpayer must be prepared to respond to all of the department’s queries and supply proofs wherever requested, should he/she receive a notice for the same,” added Gupta.
How to correct wrong deductions and exemptions in income tax returns?
Abhishek Soni, Co-founder & CEO of Tax2win you can correct it by filing a revised return under Section 139(5) of the Income Tax Act. But, do remember, the revised return can be filed three months prior to the end of the relevant assessment year; for the financial year 2022-23, the last date for filing the revised return would be December 31, 2023.
ITR filing deadline
The deadline to file the Income Tax Return (ITR) for the financial year 2022-23 is 31st July 2023.
Source By: livemint
