As the ITR filing momentum has begun and taxpayers seek clarity, Timesnownews.com spoke to Divya Baweja, Partner, Deloitte India, who answered critical
concerns around ITR filing in an exclusive interaction and also shared guidance for all on the matter. Q. What factors are critical for those still confused between old and new regime? A. The choice between the old and new tax regime depends primarily on the financial profile of the taxpayer. If the taxpayer claims substantial deductions and exemptions (such as HRA, home loan interest, and investments under Section 80C), the old regime may be more beneficial. However, if there are limited deductions and taxpayer prefers a simpler tax structure with lower tax rates, the new regime may be the better option. Since the outcome varies from person to person, it is advisable to compare the tax liability under both regimes before making a decision. Q. The mistakes that taxpayers must avoid? A. Taxpayers should ensure that they report all sources of income, verify the information reflected in their Annual Information Statement (AIS) and Form 26AS, and claim only eligible deductions and exemptions. It is also important to choose the correct tax regime, verify bank account details, and file the return within the prescribed due date. A careful review before submission can help avoid notices, delays in processing, or issues with refunds. Q. If a taxpayer notices an error after filing ITR, what is the next step to correct the error? A. The corrective step depends on the nature of the error. Most reporting mistakes can be corrected by filing a revised return within the prescribed timeline. If the issue relates to TDS, tax payments, or information reported by another party, those records may need to be corrected first. Acting promptly helps avoid notices, additional tax costs, and delays in receiving refunds.
