ITR Filing 2025: If you have earned any kind of extra income, then hiding it can be costly. It is necessary to report every income source.
If you are preparing to file your income tax return, then be a little careful. Under the new ITR rules, if you claim fake deduction or hide income, then you may have to face a heavy penalty. The Income Tax Department has clearly stated that if you give wrong information in your return, then a penalty of up to 200% of the tax due can be imposed. Apart from this, there can also be a case under 24% annual interest and section 276C. That is, a small mistake or false claim can put you in big trouble.
If you want to avoid this, then it is important that you fill the details of your income and deduction correctly. Here we are going to tell you which common mistakes you should avoid and how you can avoid penalty.
These are some common mistakes made in ITR that can cost you heavily…
- Claiming 80C deduction without bill or proof
- If you do not have proof of the money you have spent on things like LIC, PPF or tuition fees, then the tax department can reject that claim.
- Choosing the old tax regime first and then switching to the new one later
- The old tax regime gives the benefit of deduction, but if you later choose the new regime, then all those benefits are lost.
- Claiming HRA without rent agreement or landlord’s PAN
- If you are claiming HRA, then you must have proof of rent and the landlord’s PAN.
- Disclosing personal expenses as business expenses
- If expenses like mobile bill, food or travel are personal, then it would be wrong to show them as business expenses.
- Hiding freelancing, crypto or side income
If you have earned any kind of extra income, then hiding it can prove to be costly. It is necessary to report every income source.
What to do to avoid penalty?
- Keep proof of the thing on which you are claiming deduction and it should be genuine
- Match income with your Annual Information Statement (AIS)
- Declare every income source
- File ITR before the deadline
Keep these things related to ITR in mind
If the department comes to know that you have knowingly given wrong information, then there will be no benefit in filing revised return. Also know that even if a CA or consultant makes a mistake, this responsibility will be considered yours. Even if someone else has filed the return, but according to the law, the accountability lies with the taxpayers. These rules apply not only to salaried people but also to employed people, freelancers, professionals and businessmen, i.e. everyone.
