Incorrect selection of return form
Using the wrong income tax return form leads to defective filing. Companies must ensure that they use the correct ITR form based on their legal status and income sources.

• Companies should use ITR six for regular filings under company structure
  
• Using ITR for individuals or partnership firms results in rejection
  
• Forms must match the nature of income and compliance category
  
• Mismatch in form selection can delay processing and refunds
  

Mismatch in tds and advance tax entries
Companies often report incorrect or incomplete tax payments. This results in tax credit mismatches, leading to notices and delayed refund processing.

• TDS amounts must match those reported in form twenty six AS
  
• Advance tax and self-assessment tax entries should be accurate
  
• Omission of interest or surcharge can result in underreporting
  
• Cross-verification of tax paid and return entries is essential
  

Omission of income sources
Failing to report all sources of income affects the accuracy of the return. Companies must declare all taxable income, including those not reflected in books.

• Interest, rental, and other incidental income must be reported
  
• Foreign income, if taxable, must be included in the return
  
• Gains from asset sales or capital receipts should be disclosed
  
• Taxable reimbursements and incentives must not be excluded
  

Inaccurate computation of depreciation
Incorrect application of depreciation rates or methods results in errors in profit computation. Companies must follow the prescribed income tax depreciation schedule.

• Assets must be classified and grouped accurately for depreciation
  
• Only eligible assets used for business purposes can be depreciated
  
• Depreciation rates must align with income tax rules, not accounting norms
  
• Carry forward and unabsorbed depreciation must be calculated correctly
  

Failure to file mandatory audit reports
Companies subject to tax audit must submit audit reports with their returns. Missing or delayed reports can render the return defective or incomplete.

• Audit reports under section forty four AB must be uploaded in time
  
• Transfer pricing reports under section ninety two E must be attached
  
• Mismatch between reported figures and audit reports causes issues
  
• Company must ensure both forms and supporting reports are synchronized
  

Late filing of returns and reports
Delays in filing returns attract penalties and affect eligibility for deductions and refunds. Timely filing ensures legal compliance and smooth assessment.

• Missing the due date leads to interest under section two thirty four A
  
• Late fee under section two hundred thirty four F applies to delayed filing
  
• Losses cannot be carried forward if the return is filed after due date
  
• Refund claims may be processed slower due to late submissions
  

Improper reporting of deductions and exemptions
Companies sometimes misapply or overstate deductions and exemptions. This may lead to disallowance during assessment and penalties for misreporting.

• Deductions must be claimed only if conditions are fully met
  
• Ineligible exemptions under startup or SEZ schemes should be avoided
  
• Misreporting CSR expenditure as business expense is disallowed
  
• Incomplete documentation for deductions leads to rejection
  

Incorrect details in company profile or form
Errors in basic details such as PAN, TAN, or company name can invalidate the filing. All identification and contact details must be accurate and current.

• PAN and TAN must match with the income tax portal records
  
• Registered email and mobile number should be functional for OTP
  
• Principal place of business and director details must be updated
  
• Filing with incorrect CIN or constitution may trigger notices