Filing income tax returns can be a complex and often challenging task for taxpayers, especially with frequent updates to tax laws and regulations. The Assessment Year (AY) 2024-25 introduces several changes and clarifications that taxpayers need to be aware of to ensure a smooth and accurate filing process. This document provides a comprehensive list of common issues encountered while filing ITR for AY 2024-25 and offers detailed answers to frequently asked questions (FAQs). By addressing these common queries, taxpayers can avoid potential pitfalls and ensure compliance with the latest tax requirements.
Q.1: Taxpayer is unable to choose ITR 1/ 4 from drop down for AY 2024-25 as the option is greyed off while filing return?
Ans: In case the taxpayer has special rate of income and TDS is deducted for such income (e.g., 115BB), then ITR 1 and ITR 4 are not applicable. The respective dropdowns are greyed off. The taxpayer is required to file ITR Form 2 or 3 as applicable.
Q.2: Schedule VIA for claiming deductions is not enabled while filing the ITR for AY 2024-25?
Ans: From AY 2024-25, the new tax regime has become the default tax regime and VIA deductions cannot be claimed, except deduction u/s 80CCD(2)/80CCH/80JJAA as per Section 115BAC of the Income Tax Act, 1961. To claim any deductions (as applicable), the taxpayer needs to choose the old tax regime by selecting “Yes” in ITR 1 / ITR 2 or “Yes, within due date” in ITR 3 / ITR 4 / ITR 5 under the “opting out option” in the Schedule ‘Personal Information’ or ‘Part-A General’.
Q.3: While filing the ITR, the taxpayer is getting a bank account validation error. How to resolve the issue?
Ans: The taxpayer should check if valid bank account details are added under the ‘My Bank Account’ tab in the ‘My Profile’ section on the income tax portal before filing the ITR. Update the profile correctly before starting the new filing. In case of issues while validating the bank account, use the offline utility to file ITR. A pre-validated bank account is required for issuing refunds.
Q.4: If the taxpayer has earned special income like winning from a lottery or horse races, can they file ITR 1 and ITR 4?
Ans: If TDS has been deducted on special income like winning from a lottery or horse races, filing ITR-1 and 4 is not allowed. It is recommended to check Form 26AS and AIS before filing the ITR.
Q.5: If Form 10IEA is filed for AY 2024-25, is it compulsory for the taxpayer to opt for the old tax regime?
Ans: Yes, once Form 10IEA is filed for AY 2024-25, it cannot be reverted in the same AY, and the taxpayer must opt for the old tax regime for AY 2024-25. The taxpayer can change the option in the next assessment year based on the income details and ITR applicability.
Q.6: In which case is filing Form 10IEA for AY 2024-25 compulsory to opt for the old tax regime?
Ans: Filing Form 10IEA is mandatory for taxpayers who want to file ITR under the old tax regime for AY 2024-25 with Business and profession income, i.e., either in ITR-3 or ITR-4.
Q.7: The taxpayer is unable to claim Interest on borrowed capital of a self-occupied property as it is greyed off. Why?
Ans: From AY 2024-25, the ‘New Tax Regime’ has become the default tax regime, and claiming “Interest on borrowed capital for self-occupied property” is not allowed as per Section 115BAC of the Act, 1961. To claim this, the taxpayer must choose the ‘Old Tax Regime’ by selecting “Yes” in ITR 1 / ITR 2 or “Yes, within due date” in ITR 3 / ITR 4 / ITR 5 in the field provided for the “opting out option” in the ITR Form.
Q.8: While filing ITR for AY 2024-25, the taxpayer is unable to claim all other deductions other than 80CCD (2). Why?
Ans: From AY 2024-25, the new tax regime has become the default tax regime where claiming Chapter VIA deductions are not allowed except Section 80CCD (2) as per Section 115BAC of the Income Tax Act. To claim other VIA deductions, the taxpayer must choose the ‘Old Tax Regime’ by selecting “Yes” in ITR 1 / ITR 2 or “Yes, within due date” in ITR 3 / ITR 4 in the field provided for the “opting out option” in the ITR Form.
Q.9: The taxpayer is getting an error as “Name of taxpayer in ITR does not match with the Name as per the PAN database”. How to resolve this?
Ans: The First Name, Middle Name, and Last Name in ITR should match the name registered under the My Profile section after logging in on the portal. Update the profile and then download the latest prefilled JSON for filing the return offline or start a new filing online.
Q.10: For AY 24-25, the taxpayer filed Form 10IEA by mistake and now wishes to revoke/withdraw the same. Can this be done?
Ans: Once Form 10IEA is filed for AY 2024-25, it cannot be revoked/withdrawn in the same AY. The taxpayer must mandatorily opt for the old tax regime for AY 2024-25. The option to ‘Withdraw’ will be available in the subsequent year and can be changed only once in a lifetime for Business and profession cases (ITR-3 or ITR-4).
Q.11: The taxpayer is unable to claim 10(13A) house rent allowance while filing the return for AY 2024-25. Why?
Ans: From AY 2024-25, the new tax regime has become the default tax regime where claiming HRA u/s 10(13A) is not allowed as per Section 115BAC of the Income Tax Act. To claim HRA, the taxpayer must choose the ‘Old Tax Regime’ by selecting “Yes” in ITR 1 / ITR 2 or “Yes, within due date” in ITR 3 / ITR 4 in the field provided for the “opting out option” in the ITR Form.
Q.12. Is any form required to file for claiming the deduction u/s 80DD and 80U?
Ans: When claiming deductions u/s 80DD and 80U, it is recommended for the taxpayer to obtain a certificate from the relevant medical authority for such disabilities. File Form 10IA as per Rule 11A and provide the form details (acknowledgement no. and date) in Sch 80DD/80U of the return.
Q.13. Is it mandatory to verify the return?
Ans: Yes, verification of ITR after submission is mandatory. The return should be verified within 30 days post-submission either through EVC mode or DSC. Alternatively, download the ITR-V receipt copy under View Filed Return and send it to CPC via speed post within 30 days. It is recommended to complete verification online to avoid postal issues.
Q.14: The taxpayer is unable to choose “Yes/No” for “Whether you were director in a company at any time during the previous year” while filing return in ITR 2 / ITR 3. Why?
Ans: This question is applicable only for “Individual”. Check the Status of the Assessee. If the Status is ‘Individual’, the option “Whether you are a ‘Director’ of a company at any time during the previous year” will be enabled. Enter the details and proceed to file the return.
Q.15: The taxpayer is getting an error as “Gross receipts/ Turnover is provided in schedule BP but financial particulars such as sundry creditors/Inventories, sundry debtors, cash in hand is not filled” in ITR 4. How to resolve this?
Ans: It is mandatory to fill fields such as ‘Sundry Creditors, Inventories, Sundry Debtors, Cash in Hand’ under “Financial particulars” in schedule BP in ITR 4. If not filled, it will throw an error.
Q.16: The taxpayer filed Form 10-IEA and is submitting ITR with correct Form 10-IEA details, but an error still appears. What to do?
Ans: Check and validate Form 10IEA details under “view filed Forms” after submission. Retry filing ITR after entering the correct form details. Ensure not to submit Form 10-IEA multiple times on the portal.
Q.17: The taxpayer corrected validation errors during ITR submission, but errors still show. What to do?
Ans: Try resubmitting ITR in a fresh session to avoid issues after correcting errors.
Q.18: The taxpayer entered the deduction amount u/s 80CCD (2) under Schedule VIA in the return, but the eligible amount is computing as 0. Why?
Ans: Check if Salary income is provided after selecting the ‘Basic Salary’ dropdown under Schedule Salary for computing the eligible deduction u/s 80CCD (2).
Q.19: Is it mandatory to verify the return through DSC option only for 44AB audit return cases?
Ans: An amendment in Rule 12 of Income Tax Rules, 1962, effective from 1st April 2024, allows verification of the return in 44AB audit cases through the EVC option. It is no longer mandatory to verify through DSC only.
Q.20: The taxpayer is receiving an error for tax computation even after paying advance tax. What could be the issue?
Ans: The taxpayer should ensure that the details of the advance tax paid are correctly filled in the Schedule IT section of the ITR form. If the details are incorrect or missing, it will result in an error. Cross-check with Form 26AS to confirm the advance tax payments are recorded correctly.
Q.21: The taxpayer is unable to e-verify the return using Aadhaar OTP. How to resolve this?
Ans: Ensure that the mobile number linked to Aadhaar is active and has the ability to receive OTPs. Check if the Aadhaar number is correctly linked and verified in the income tax portal profile section. If issues persist, use other e-verification methods like net banking or bank account pre-validation.
Q.22: The taxpayer has multiple bank accounts, but not all are visible for refund purposes. What should be done?
Ans: The taxpayer should ensure that all bank accounts are pre-validated and EVC-enabled in the ‘My Bank Account’ section of the income tax portal profile. Only pre-validated and EVC-enabled bank accounts will be available for selection for refund purposes.
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