ITR Filing 2025: The process of filing income tax return (ITR) for assessment year 2025–26 (FY 2024–25) has started. Especially after getting Form 16, a large number of taxpayers are filing returns.
However, tax experts are warning that if you give any wrong information or hide income in the return, the Income Tax Department can not only impose a fine but also face interest and legal action. This fine can be up to 200%.
Heavy fined on wrong claim
According to tax partner Sandeep Sehgal in AKM Global, ‘hiding income in ITR, claiming false deduction or discount, or giving incorrect information comes under the purview of punishment under Section 270A of the Income Tax Act. If the mistake is inadvertently, 50% of the tax may be fined. But on deliberately giving wrong information, a fine of up to 200% of the tax can be imposed.
When can I pay 200% penalty?
- Claiming HRA by showing fake rent receipt.
- Claiming deduction/discount without proof under Section 80C or 10.
- Crypto, freelancing, gig economy or foreign income hiding.
- To suppress false entry or facts in books.
Under Section 271AAD, if an incorrect or untouched entry comes out during assessment, then the entire amount can be fined separately.
Wrong ITR form can also be heavy
According to Cleartax report, many taxpayers do not choose the correct form, which could not report some income. There is also a danger of fine in such cases. In such a situation, choose the ITR form completely tested. If necessary, you can also consult an expert.
CA’s mistake will not be supported
Tax experts clarify that even if you make a mistake from your chartered accountant or tax consultant while preparing the return, the responsibility will still be considered as the taxpayer. Under the law, it is responsible for the one who has filed a return. This means that you also cannot escape by making excuses that a CA had filled your ITR.
Danger of interest and prosecution
In the event of wrong returns or tax underpayments, taxpayers may have to pay interest under Section 234B and 234C of Income Tax. If the matter is serious, the Income Tax Department can also start a prosecution.
How to avoid these mistakes?
- Report the income from all sources correctly.
- Choose the suitable ITR form for yourself.
- Keep the appropriate documents of every deduction and exemption ready.
- When the mistake is caught, file revised or updated returns immediately.
Sandeep Sehgal advises, ‘Make full honesty and transparency while filing ITR. If there is an error, then serious legal results can be postponed by fixing it soon.
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