Why Your ITR Form Might Get Rejected in 2024: 10 Key Reasons
Filing your Income Tax Return (ITR) is a crucial annual task for taxpayers every year, but there are numerous reasons why your ITR filing might get rejected in 2024. From incorrect personal details to discrepancies in income reporting, many factors can cause your ITR to be invalidated. Understanding these common pitfalls and how to avoid them can save you from the hassle of dealing with a rejected return. In this blog, we’ll explore ten key reasons your ITR filing might get rejected and provide practical tips to ensure a smooth and successful filing process.
1. Incorrect Personal Details
One of the most common reasons for ITR rejection is incorrect personal details. Mistakes in your name, PAN (Permanent Account Number), or address can lead to discrepancies that result in rejection. Always double-check your personal information before submitting your ITR.
2. Mismatch of Income Details
A mismatch between the income details mentioned in the ITR form and those in your Form 16 or 26AS can cause rejection. Ensure that the income details provided in the ITR form align perfectly with the details in your Form 16 and 26AS.
3. Incomplete Form
Failing to fill out all the required fields in the ITR form can result in rejection. It is essential to complete every section of the form accurately to avoid any issues.
4. Invalid Bank Details
Providing incorrect or invalid bank account details can prevent successful processing of your refund, leading to rejection. Ensure that your bank account details are accurate and up-to-date.
5. Incorrect Tax Computation
Errors in calculating tax liability or claiming deductions incorrectly can lead to ITR rejection in 2024. It is crucial to compute your taxes accurately and claim only the deductions you are eligible for.
6. Failure to Verify ITR 2024
After filing, it is mandatory to verify your ITR 2024. If you don’t verify it within the stipulated time, your ITR will be considered invalid. Verification can be done electronically or by sending a signed ITR-V to the Centralized Processing Center (CPC).
7. Wrong ITR Form
Filing the wrong ITR form that does not correspond to your income sources and status can lead to rejection. Different forms cater to different categories of taxpayers, so choose the correct one based on your income and financial status.
8. Late Filing
Submitting your ITR after the deadline can attract penalties and rejection. Be mindful of the due dates and file your ITR well before the deadline to avoid any last-minute hassles.
9. Non-disclosure of Foreign Assets
Not reporting foreign assets or income, if applicable, can cause rejection and even attract penalties. If you have foreign assets or income, ensure they are disclosed accurately in your ITR.
10. Discrepancies in Deduction Claims
Claiming deductions that you are not eligible for, or discrepancies in the claimed amounts can result in ITR rejection. Carefully review the deductions you are claiming and ensure they are legitimate.
Tips to Avoid ITR Rejection
- Double-check all details: Verify all personal and income details before submitting your ITR.
- Use correct form: Ensure you are using the appropriate ITR form based on your income sources.
- Submit on time: File your ITR before the deadline to avoid late submission penalties.
- Verify your ITR: Don’t forget to verify your ITR after filing.
Frequently Asked Questions (FAQ) on ITR Filing
Q1: What is an ITR?
A1: An Income Tax Return (ITR) is a form in which taxpayers declare their income, deductions, and taxes payable to the Income Tax Department.
Q2: Who needs to file an ITR 2024?
A2: Any individual or entity whose income exceeds the basic exemption limit is required to file an ITR. This includes salaried employees, self-employed individuals, businesses, and corporations.
Q3: What documents are required for ITR filing 2024?
A3: Key documents include Form 16, Form 26AS, bank statements, investment proofs, TDS certificates, and details of deductions.
Q4: How can I verify my ITR 2024 ?
A4: You can verify your ITR electronically using Aadhaar OTP, net banking, or by sending a signed ITR-V to the CPC.
Q5: What happens if I don’t file my ITR?
A5: Failure to file your ITR can result in penalties, interest on the due tax amount, and other legal consequences.
Types of ITR Forms
ITR-1 (Sahaj): For individuals with income up to ₹50 lakh from salary, one house property, and other sources (excluding lottery winnings and racehorses).
ITR-2: For individuals and HUFs not having income from business or profession.
ITR-3: For individuals and HUFs having income from a proprietary business or profession.
ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLP) having a total income up to ₹50 lakh and income from business and profession computed under sections 44AD, 44ADA, or 44AE.
ITR-5: For persons other than individuals, HUFs, companies, and persons filing Form ITR-7.
ITR-6: For companies other than those claiming exemption under section 11.
ITR-7: For persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D).
Conclusion
Filing your ITR accurately and timely is essential to avoid rejection and potential penalties. By paying attention to these common reasons for rejection and understanding the different types of ITR forms, you can ensure a smooth and hassle-free ITR filing process in 2024.