Filing your income tax return (ITR) is no big deal. All you need to do is visit one of the portals that offer self-filing for income tax returns—log in, enter a few details such as your PAN card and mobile number. The portal will automatically fetch data from multiple sources to provide you with a pre-filled ITR form. Then you need to verify the details and file your ITR. In just a few minutes, you can complete this task, which often feels overwhelming for many. The credit goes to one of the many do-it-yourself (DIY) portals that offer ITR filing on your own. With smooth, quick ITR filing at a nominal cost, what more could you ask for?
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Arnab used to feel the same way—until he realised how much tax he could save by claiming all eligible tax exemptions. The Bengaluru-based IT professional was paying a high tax rate because he did not know how to claim exemptions for House Rent Allowance (HRA).
Arnab is not alone. Many taxpayers rely on self-filing or DIY options for their tax returns due to various reasons—it’s easy, time-saving, and cost-efficient. However, they often realise too late how much extra they are paying in taxes to save a minimal amount of money.
Keep in mind that the last date to file ITR for FY 2024-25 is September 15, 2025.
Risks of filing ITR on your own that you are overlooking
Not up-to-date with the latest tax rules
Are you aware of the latest rule changes in income tax laws? The rules related to income tax filing are subject to frequent changes. If you’re not up-to-date with the latest changes, you may make mistakes such as incorrect income reporting, miscalculating deductions, or choosing the wrong ITR form. A simple error could trigger notices from the Income Tax Department or lead to penalties. Furthermore, you may end up paying higher taxes because you are unaware of all the tax exemptions and deductions you can claim while filing your ITR. Be mindful of these limitations when filing your income tax return for FY 2024-25.
Relying on DIY tax filing portals? You may be in for trouble
You might think that you are not actually filing your ITR on your own. The DIY portal you trust blindly fills everything for you; all you have to do is check and submit. But consider this: if you are not aware of the latest income tax rule changes, how can you be certain that the pre-filled ITR form from the DIY portal is accurate? While it fetches information from your Form 16 or Annual Income Statement (AIS), have you reviewed those documents to confirm that your income is reported correctly? Or have you checked whether the interest from your savings account is accurately reflected in your AIS? Failing to consider these details could lead to complications.
Not disclosing all incomes, holdings on your ITR for FY 2024-25
From interest income from your savings account to gains from shares, mutual funds, Virtual Digital Assets (VDAs) such as cryptocurrencies, as well as foreign asset holdings or unlisted shares, it’s essential to disclose all your income when filing your income tax returns. Omitting any income could result in serious repercussions, including penalties. Even unintentional mistakes can lead to tax notices and monetary penalties. Therefore, consider whether you are aware of the incomes you need to report before you begin filing your ITR.
Limited support, guidance while filing ITR
If you encounter any questions or doubts while filing your ITR, your only support may be an AI-assisted chatbot from the DIY portal or forums like Reddit. There may not be a real expert available to guide you through the complexities of tax filing, which could result in missed tax exemptions or deductions and lost opportunities to save on taxes.
ITR filing on your own can be time-consuming and exhaustive
“You can file your ITR in 3 minutes,” the commercials for some self-tax filing portals claim. This may hold true only for simple tax returns. But if you have income from multiple sources, capital gains from equities, or rental income, you could end up spending significant time on your tax return if your tax computation is complex. Collecting necessary documents, understanding them, and accurately filing your ITR can be exhausting. Is it worth spending so much time just to save a little when you’re uncertain about how to file ITR on your own?
Why you should seek professional help to file ITR
Think about how you handle challenges in your life. When you are unwell, you seek a doctor’s help rather than attempting to self-medicate. Why not take the same approach when filing your income tax return?
How qualified professionals can help in your ITR filing journey
Expert guidance: Accurate and compliant with the latest income tax rules
Qualified professionals, such as experienced Chartered Accountants (CAs), can assist you in numerous ways when it comes to filing income tax returns. They stay updated on all the latest changes in income tax laws, providing you with peace of mind regarding your compliance. This significantly reduces the chances of errors due to misreporting, miscalculations, or incorrect submission of the ITR form.
Understanding complex ITR cases
From managing intricate income tax returns involving diverse income sources to capital gains and foreign income, these professionals can help you file your ITR accurately. They navigate complex tax laws, maximising tax benefits for you.
Saving time and reducing stress
Hiring professionals to handle your tax returns saves you considerable time and reduces stress. You won’t have to worry about gathering documents, cross-checking them, selecting the right form, or understanding intricate tax rules before filing your income tax returns. A qualified professional will manage all these tasks, allowing you to focus on your life.
Navigating tax notices
In the event of a tax notice from the Income Tax Department, qualified professionals are equipped to manage the situation. They can assist in responding to notices, answering queries, ensuring the process runs smoothly and without unnecessary stress. In summary, while DIY tax filing might seem convenient, it’s essential to understand the risks and consider seeking professional assistance to ensure compliance and optimise your tax benefits.
Like other professionals, those who file income tax returns for the financial year 2024-25 will charge a fee for their services, which will save you a lot of hassle later on. Errors in your ITR could lead to income tax notices and penalties, while failing to claim all eligible tax exemptions and deductions can result in higher taxes out of your pocket. Overall, the money you save by filing your ITR yourself is minimal compared to the stress you may experience due to errors in your return or the burden of paying more taxes.
How 1 Finance can help you with ITR filing for FY 2024-25
1 Finance has a team of Chartered Accountants with years of experience in handling complex tax returns. Not chatbots or AI assistants, but seasoned professionals with proven expertise in their fields. They are well-versed in the latest changes to the income tax rules and guidelines. At 1 Finance, we ensure that you meet all compliance requirements set by the Income Tax Department. Our tax experts are here to help you with all the tax exemptions and deductions for which you qualify, ultimately reducing your tax liability. With their knowledge, you can feel confident about managing your taxes. They not only file your ITR but also offer post-ITR filing support. From e-verifying your income tax return to addressing select tax notices that may arise, our dedicated team of tax experts will guide you from start to finish.
File your ITR for FY 2024-25 with experienced CAs at 1 Finance
Remember that ITR filing is just one part of your year-round tax planning. If you want to maximise your tax savings, you need to plan your investments accordingly throughout the year. This is where year-round tax planning by Qualified Financial Advisors (QFA) at 1 Finance can be beneficial.
Don’t just file your ITR; plan your taxes in a way that maximises your tax savings every year.
Conclusion
In conclusion, it is crucial to remember that attempting to cut corners in financial matters, especially taxes, can lead to significant complications down the line: Don’t be penny wise and pound foolish. Seeking guidance from experts when you’re uncertain isn’t just wise; it’s a proactive step towards safeguarding your financial stability. Prioritising clarity and thoroughness over short-term convenience will not only save you money in the long run but also contribute to your overall peace of mind.
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