Millions of taxpayers across the country eagerly await their income tax refunds after filing Income Tax Returns (ITR). But a single mistake in the filing process can delay or even block refunds, leaving taxpayers frustrated.
Last year, over 7 crore ITRs were filed, yet around 2 crore taxpayers received notices for errors. According to official data, only 5.34 crore returns were processed smoothly, while the rest were either incomplete or contained mistakes. Surprisingly, most of these errors were not linked to tax evasion but simple negligence.
Tax experts warn that three common mistakes are often responsible for refund delays or notices:
1. Skipping e-verification
Filing an ITR is not enough; it must be e-verified within 30 days. Failing to do so makes the return invalid, automatically stopping refunds. In some cases, taxpayers may also face a penalty of up to Rs 5,000.
2. Ignoring AIS data
The Annual Information Statement (AIS) records details of income, bank accounts, and investments. If there is a mismatch between the figures declared by taxpayers and the AIS, such as dividend income or TDS amounts, it can trigger a notice.
3. Choosing the wrong ITR form
Many individuals pick the ITR-1 form for simplicity, even if they have business income or capital gains. This leads to rejection and penalties. For instance, a Mumbai taxpayer wrongly reported half his income and had to pay a penalty of Rs 1.46 lakh.
Filing ITR is not just a formality-it is a legal obligation that directly affects refunds, compliance records, and future financial credibility. Experts advise taxpayers to be cautious, accurate, and complete the verification process on time.
