Do You Know Which Mistakes Can Lead To Penalties From The Income Tax Department?

Several mistakes can lead to penalties from the Income Tax Department. Firstly, late filing of income tax returns beyond the specified due date can result in penalties, which increase the longer the delay persists. Secondly, underreporting income or providing incorrect details about investments and financial transactions can also attract penalties. It's essential to accurately disclose all sources of income, including interest, rental income, and capital gains, to avoid penalties for non-disclosure. Additionally, discrepancies or mismatches in claiming Tax Deducted at Source (TDS) credits, where the claimed amount exceeds what is reflected in Form 26AS, can lead to penalties. Failure to pay advance tax or underestimating the amount due can also result in penalties. Non-compliance with tax notices, such as ignoring or not responding promptly, can further escalate penalties imposed by the tax authorities. Ensuring accurate reporting and timely compliance with tax obligations is crucial to avoid these penalties from the Income Tax Department.