Avoid costly ITR mistakes beyond Form 16

Form 16 alone is insufficient; taxpayers must also reconcile income from interest, dividends, freelance work, capital gains, and rental income using Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS).

Choosing between the old tax regime (with deductions like HRA, LTA, Sections 80C, 80D) and the new tax regime (lower rates but fewer exemptions) requires a side-by-side calculation to avoid an inflated tax bill.

Claiming deductions under Sections 80C, 80D, or 80G without actual payments completed within the financial year can trigger tax notices, interest, and penalties.

Salaried workers who switched employers must carefully account for income and TDS from both jobs, as Form 16 from each may be partial.

Omitting capital gains from transactions in stocks, mutual funds, or property is a common mistake that the Income Tax Department’s digital tracking systems can detect, leading to notices.