With the deadline for filing Income Tax Returns (ITR) nearing, taxpayers are urged to exercise caution. Even small omissions or failure to disclose information can attract severe penalties—up to ₹10 lakh in fines and imprisonment ranging from six months to seven years.
Chartered Accountant Ravi Ranjan from Ranchi highlighted common mistakes taxpayers must avoid:
Foreign Assets & Income
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Residents of India owning property abroad must fill Schedule FA, declaring details of overseas bank accounts, shares, property, insurance, and other assets.
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Any income from foreign sources must be reported in Schedule FSI, along with the country of origin and taxes paid. Non-disclosure can lead to heavy fines and jail terms.
Cryptocurrency & Unlisted Shares
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All cryptocurrency and NFT transactions must be declared in Schedule VDA, with purchase/sale dates and transaction amounts.
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Holders of unlisted company shares must report acquisition and sale details, including the number of shares.
Income Above ₹1 Crore
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Individuals earning over ₹1 crore annually must disclose assets and liabilities such as property, jewellery, vehicles, loans, cash, and shares.
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Company directors must furnish their DIN, company name, PAN, and listing status.
Verification & Partner Details
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Partners in firms must declare the firm’s name, PAN, profit share, and any salary or interest received.
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Accurate bank account details, including IFSC codes, are mandatory to ensure smooth refunds.
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ITR must be e-verified within 30 days of filing, failing which it will be considered invalid.
With strict compliance rules in place, experts warn that transparency is the safest route to avoid heavy penalties and legal consequences.
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