WHAT HAPPENED WHEN ITR GET REJECTED?
Introduction of ITR rejection
Filing an Income Tax Return (ITR) is an essential financial responsibility for individuals and businesses. However, there are instances when an ITR gets rejected by the Income Tax Department. Understanding why ITRs are rejected, the consequences, and the steps to rectify the situation is crucial for taxpayers. In this comprehensive guide, we will explore what happens when your ITR is rejected, common reasons for rejection, the process of rectification, and how to prevent ITR rejection in the first place.Visitofficialwebsite
Common Reasons for ITR Rejection:
Before diving into the consequences of an ITR rejection, it’s important to know why ITRs are rejected in the first place. Here are some common reasons:
1. Discrepancies in Information:
- If the information provided in your ITR does not match the data available with the Income Tax Department, it can lead to rejection. This includes discrepancies in income, TDS (Tax Deducted at Source) details, and bank transactions.
2. Non-Filing of Mandatory Schedules:
- ITR forms have various schedules that need to be filled out depending on your income sources. Failure to fill out the required schedules or not attaching necessary documents can result in rejection.
3. Incorrect Bank Account Details:
- Providing incorrect bank account information for receiving tax refunds can lead to rejection. Make sure the account details match the ones provided during the e-filing process.
4. Non-Verification:
- Failing to verify your ITR can result in its rejection. Verification can be done electronically through Aadhaar OTP, net banking, or by sending a physical copy of the ITR-V to the Centralized Processing Center (CPC) within the stipulated time.
5. Mismatch in TDS Details:
- A common reason for rejection is a mismatch between the TDS details in your ITR and the TDS details available in Form 26AS. Ensure that the TDS details match accurately.
6. Incomplete Information:
- Incomplete information or failure to provide necessary details, such as PAN (Permanent Account Number), Aadhaar, and other essential information, can lead to rejection.
7. Incorrect Filing Status:
- Choosing the wrong filing status (e.g., filing as an individual when you should be filing as an HUF or partnership) can result in rejection.
8. Late Filing:
- Filing the ITR after the due date (usually July 31st) can result in late filing fees and potential rejection.
Consequences of ITR Rejection:
When your ITR is rejected, it has several consequences:
1. Loss of Deductions and Refunds:
- If your ITR is rejected, you won’t be able to claim deductions, such as those under Section 80C, 80D, or 10(14), which could result in higher tax liability. Additionally, you won’t receive any tax refunds until your ITR is successfully processed.
2. Late Filing Penalties:
- In case of late filing or a delayed rectification, you may be liable for late filing penalties. The penalty amount can vary based on the delay.
3. Legal Action:
- If there is a suspicion of tax evasion or fraud, your case might be referred for further investigation, leading to legal consequences.
4. Financial Loss:
- ITR rejection can result in a financial loss due to missed deductions, delayed refunds, and potential penalties.
How do I contact the IRS about a rejected tax return
You might not have to. If the IRS gave a reason for the rejection, correct whatever was wrong and resubmit it. Attach a note if you want to explain a special circumstance.
If you must contact them about receipt of correspondence or clarification, send a reply or dial the toll-free number until someone answers.
If you are lucky to have an IRS “walk-in” office near you take your return and related papers in to be examined.
How do I file a rejected tax return
Fix whatever caused the rejection and re-file. Some common causes are a name/SSN mismatch when someone recently changed their last name with SS. Try using the former last name. Dependent’s SSN has been used on another return. Confirm that you used the correct SSN and birth date. If you feel you have the right to claim the dependent and the other person doesn’t, you will have to file on paper. Check with your parent(s) to see if they claimed you as a dependent. If they did, you have to check the box that says you are a dependent and e-file, or your parents have to amend their return to remove the claim and you have to file on paper. If you are not able to fix the rejection, you will have to file on paper and it will take many months for your return to be processed.
What if the income tax return is rejected
Department can reject your income tax return, due to various reasons e.g. late submission, absent signature, poor condition/ quality of itr form received for assessment. If income tax return rejected due to poor quality then assessee need to send physical copy of return in good condition to the CPC within 120 days of filling of return into that particular city where they belongs.
If you get messages or mail from the IT department regarding the rejection of ITR then you need to check the status on it website and make the necessary changes which are required and submit the revised return. and make sure you have verified the your return by any of the four ways by producing EVC online
- through e-filing website of income tax dept
- vai net banking
- through adhaar number
- vai the atm
I hope you get your answer.
How do you know if a tax return was rejected
If you electronically file your tax return, you will get notification almost instantly whether you get Accepted or Rejected depending on the tax software you are using. If you Paper File, then it’s a different story. IRS will notify you by mail about the Rejection including the Rejection Code with instructions how to fix it and re-file.
Process of Rectification:
If your ITR is rejected, you can rectify the issue by following these steps:
1. Identify the Reason:
- First, identify the reason for the rejection. The Income Tax Department usually provides a reason for rejection in the intimation or email sent to you.
2. Rectify the Errors:
- Address the specific errors or discrepancies mentioned in the rejection notice. Make the necessary corrections in your ITR form.
3. Refile the ITR:
- Once the errors are corrected, you need to refile your ITR. Generate a new XML file with the corrected information.
4. Verification:
- After refiling, ensure you verify your ITR. You can do this electronically or by sending the physical ITR-V to the CPC.
5. Keep Track:
- Keep track of the status of your rectified ITR. You can check the status online on the e-filing portal.
6. Wait for Processing:
- The Income Tax Department will process your rectified ITR. This may take some time, so it’s important to be patient.
7. Receive Intimation:
- Once the rectified ITR is processed, you will receive an intimation. This intimation will inform you of the final outcome, whether your ITR has been accepted or if there are any outstanding dues or refunds.
Preventing ITR Rejection:
The best way to deal with ITR rejection is to prevent it from happening. Here are some tips to help you avoid ITR rejection:
1. Accurate Information:
- Ensure that all the information you provide in your ITR is accurate and matches the data available with the Income Tax Department. This includes income, deductions, TDS details, and personal information.
2. File on Time:
- File your ITR within the due date to avoid late filing penalties and rejection.
3. Mandatory Schedules:
- Fill out all the mandatory schedules and provide necessary attachments or documents as required by the ITR form.
4. Verification:
- Verify your ITR after filing using one of the approved methods, such as Aadhaar OTP, net banking, or sending the ITR-V to the CPC.
5. Review Before Filing:
- Before filing, carefully review your ITR to ensure there are no errors or omissions.
6. Use Online Filing Platforms:
- Utilize online tax filing platforms or seek professional assistance to ensure your ITR is correctly prepared and filed.
7. Keep Records:
- Maintain records of all financial transactions, investments, and tax-related documents. These records can be invaluable in case of any discrepancies.
Conclusion of rejection
ITR rejection can be a frustrating experience, but understanding the common reasons for rejection, the consequences, and the process of rectification is essential. Moreover, the best approach is to file your ITR accurately, on time, and with due diligence to avoid rejection altogether. By following the tips and recommendations outlined in this guide, you can minimize the chances of your ITR being rejected and ensure a smooth tax filing process.
why you choose auriga accounting
Auriga Accounting, like many professional accounting firms, can provide valuable assistance when dealing with a rejected Income Tax Return (ITR) form. They offer expertise and services that can help individuals and businesses rectify the issues that led to the rejection and ensure a smooth tax filing process. Here’s how Auriga Accounting can help you with a rejected ITR form:
1. Expertise in Tax Laws and Regulations:
- Auriga Accounting employs tax professionals who have a deep understanding of tax laws and regulations. They are well-versed in the complexities of the tax code and can identify the specific reasons for the rejection of your ITR.
2. Error Identification and Rectification:
- The experts at Auriga Accounting will carefully review your rejected ITR to identify errors, discrepancies, or missing information. They have the knowledge and experience to rectify these issues accurately.
3. Prompt Resolution:
- Auriga Accounting is equipped to address the issues causing the rejection promptly. They will work efficiently to correct the errors and resubmit your ITR within the stipulated time frame.
4. Guidance and Compliance:
- Tax professionals at Auriga Accounting can provide guidance on how to maintain compliance with tax laws. They can ensure that all the required schedules and documents are properly filled out and attached to your ITR.
5. Communication with Tax Authorities:
- If necessary, Auriga Accounting can communicate directly with the tax authorities on your behalf. This can be particularly useful in resolving complex issues or disputes related to your tax return.
6. Filing Assistance:
- Auriga Accounting can assist you with the entire process of refiling your ITR. They can generate the corrected XML file, help you verify your ITR, and manage the submission of the rectified return.
7. Keeping Records:
- Professionals at Auriga Accounting can advise you on how to maintain proper records of your financial transactions, investments, and tax-related documents. This ensures that you have the necessary documentation for accurate tax filing in the future.
8. Tax Planning:
- Beyond rectification, Auriga Accounting can provide tax planning services to help you minimize the chances of ITR rejection in the future. They can help you structure your financial affairs in a way that is tax-efficient and compliant with tax laws.
9. Timely Updates:
- Auriga Accounting can keep you informed about changes in tax laws and regulations to help you stay ahead of potential issues and maintain compliance.
10. Professional Assistance:
- The guidance and assistance provided by Auriga Accounting come from experienced professionals who have a proven track record in handling various tax-related matters.
