Filing your income tax returns is a mandatory responsibility for every taxpayer in India. While the Income Tax Department has made online income tax returns filing simpler through e-filing portals, many individuals and small business owners still commit serious errors when they try to file returns themselves without consulting a tax expert.
In this article, we’ll highlight the risks of income tax returns filing without the help of a professional and why expert assistance is often a smart decision.
1. Incorrect Income Disclosure
Many individuals underreport or overreport their income unknowingly. Income may come from multiple sources—salary, freelance work, capital gains, rent, or business income.
🔴 Risk:
✔ Mismatch in income reported and Form 26AS or AIS (Annual Information Statement)
✔ Can trigger a tax notice or scrutiny from the Income Tax Department
A tax expert ensures all sources are correctly captured during income tax returns filing, reducing the risk of penalties.
2. Missing Out on Deductions & Exemptions
There are over 70 sections under Chapter VI-A where taxpayers can claim deductions (like 80C, 80D, 80G, etc.). Many individuals aren’t aware of what qualifies.
🔴 Risk:
✔ You may pay higher tax than necessary
✔ Miss out on deductions for home loan, insurance, tuition fees, donations, etc.
A tax consultant can guide you in optimizing deductions during income tax returns filing.
3. Filing Under the Wrong ITR Form
The Income Tax Department has different ITR forms (ITR-1 to ITR-7) for various income sources and categories of taxpayers. Filing under the wrong form leads to rejection.
🔴 Risk:
✔ Return may be declared defective
✔ You may be asked to re-file under the correct form within a limited time
A professional ensures you choose the right ITR form according to your income type and category.
4. Errors in Tax Computation
Manual calculation of taxable income, deductions, and tax liability can easily go wrong without knowledge of the latest tax rules and rates.
🔴 Risk:
✔ Either underpayment or overpayment of taxes
✔ May lead to interest under Section 234B/234C or even penalty
Tax experts use updated software and knowledge of the latest Finance Acts to compute accurate tax during income tax returns filing.
5. Delay in Filing or Missing the Deadline
Many people try to file returns at the last moment and end up missing the deadline.
🔴 Risk:
✔ Late filing attracts a penalty of ₹1,000 to ₹5,000
✔ Loss of interest on refund
✔ Ineligibility to carry forward certain losses
A professional ensures timely and correct submission of returns.
6. Not Verifying the Return
Filing isn’t enough—you must e-verify your return within 30 days. Many individuals forget this step.
🔴 Risk:
✔ Return is considered invalid, even if filed on time
A tax expert ensures complete filing, including verification.
7. Inability to Handle Tax Notices
If your return is incorrect or incomplete, you may receive a notice under Section 139(9), 143(1), or 148. Most individuals don’t know how to respond properly.
🔴 Risk:
✔ Delayed or incorrect response can lead to further penalties
✔ You might need to go through an audit or assessment proceeding
Tax consultants help respond to notices and rectify issues quickly and professionally.
Conclusion
While income tax returns filing might look easy through online portals, the risks of making mistakes without expert help are high. From wrong form selection to missing deductions, these errors can cost you money, peace of mind, and even lead to legal trouble.
Hiring a tax expert or CA ensures your return is filed accurately, deductions are maximized, and you stay compliant with tax laws. For individuals with multiple income sources, business income, capital gains, or high-value transactions, professional tax filing is not a luxury—it’s a necessity.
✔ Avoid mistakes
✔ Save tax legally
✔ Stay tension-free with expert support on your side.
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