New ITR Filing Rules Bring Stricter Penalties, 200% Fine & Jail Possible For False Claims Or Hidden Income

New Delhi: Filing your income tax return (ITR) this year? Be extra careful. The Income Tax Department has made the rules tougher. If you hide income or claim false deductions, you can now face a 200 percent fine on the tax you owe. You may even face 24 percent interest on the unpaid tax and possible jail if they find you tried to cheat.

And here’s something important — even if your CA or consultant makes a mistake, you are still responsible. The law does not blame the person who files your return. It blames the person whose name is on the return — you.

Mistakes That Can Cost You Big

There are some common mistakes people make while filing ITR:

- Picking the wrong ITR form

- Claiming deductions without proof

- Not reporting extra income like rent or interest

- Showing personal costs (like travel or food) as business expenses

- Making fake HRA (house rent) claims without rent receipts

Be very careful with such errors. If the tax office finds out you were trying to cheat, fixing or revising the return later won’t help. You will still have to pay the penalty.

Check Your AIS and Keep Documents Ready

Always check your Annual Information Statement (AIS) before filing. This is a report on the tax website that shows your income from different sources. Make sure your return matches the AIS.

Also, keep proper documents for any deduction you claim — rent slips, donation receipts, loan papers, and so on. If you can’t prove it, you might have to pay a big fine.

Choose the Right ITR Form

There are different ITR forms for different people. Picking the right one is very important.

ITR-1 (Sahaj): For people with salary or pension and simple income up to Rs 50 lakh.

ITR-2: For individuals and HUFs with income over Rs 50 lakh or from multiple houses, capital gains, etc.

ITR-3: For those who run a business or work as professionals.

ITR-4 (Sugam): For small business owners or freelancers under a simple tax scheme.

ITR-5, 6, 7: For firms, companies, trusts, and institutions.

The rules now apply to everyone, whether you're a salaried employee, freelancer, business owner, or part of a company.

So take your time. Check your details. Keep your papers ready. Talk to a trusted tax advisor if you’re confused. Filing the right way will keep you safe from penalties and stress later on.