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The Consequences of incorrect ITR filling

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The Consequences of incorrect ITR filling

Posted By AMpuesto India     May 18, 2023    

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Sometimes, we might be in a rush to file our income tax return at the last minute. We rarely devote attention in the beginning and rush to complete the task as the deadline draws near. When we rush through tasks, mistakes are extremely common. So what will happen if someone had typed in the wrong details by mistake? Would it have any impact?

Incorrect filing of income tax returns (ITR) can have various consequences, depending on the nature of the error and whether it was made knowingly or unknowingly. Here are some potential consequences of incorrect ITR filing:

Penalty: The Income Tax Department (ITD) may levy a penalty for incorrect or late filing of ITR. The penalty amount varies depending on the type and severity of the error.

Interest on tax payable: If we do not take a service of CA for ITR filing and somehow there is any tax payable due to incorrect ITR filing, interest will be charged on the amount from the due date of filing till the date of payment.

Legal action: If the error in ITR filing is found to be deliberate or fraudulent, the taxpayer may face legal action. This can include prosecution and imprisonment, apart from monetary penalties. So, we should take a help of CA for Tax filing.

Scrutiny assessment: If the tax department has reason to believe that there are discrepancies in your ITR, they may initiate a scrutiny assessment. This means that your ITR will be thoroughly examined, and you may be required to provide additional documentation and evidence to support your claims. So, it is advisable to every tax payer to take to advise of CA for Tax filing because if we received any instruction from tax authority then CA can provide the require information to tax authority to avoid any penalties.

Refund delay: If tax payer filed the return without any help of CA and there is an error in the ITR filed claiming a refund, the processing of the refund may be delayed until the error is corrected. So it is important to take a help of CA for ITR filing.

Reopening of assessment: The ITD may reopen the assessment of the taxpayer if any material fact is concealed or misrepresented in the ITR filed.

Lower credit score: Late or incorrect filing of ITR can lower the credit score of the taxpayer, making it difficult for them to avail of loans or credit facilities in the future.

Difficulty in obtaining visas:

Incorrect Tax filing process can also create difficulties in obtaining visas for travel to certain countries as some countries require a valid tax return as a prerequisite for granting visas.

Therefore, it is important to ensure that your ITR is filed accurately and correctly. If you are unsure about any aspect of the filing process, it is recommended that you seek professional help or consult with a tax expert.

 

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