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Jun 24, 2025
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New ITR rules: Penalty up to 200% on claiming false deductions
All set to file your income tax return? Well, be extra careful this time. Under the new ITR rules, claiming false deductions or hiding income can cost you big. The Income Tax Department has said that if you are caught giving wrong information in your return, you could face a penalty of up to 200% of the tax due, 24% annual interest, and even prosecution under Section 276C.
This means a small mistake or a false claim can lead to a huge fine. To avoid trouble, make sure your income details and deductions are accurate. Read on to know what the new rules say and how to stay safe.
Common ITR Filing mistakes that can cost you heavily:
Even small errors in filing ITR can lead to a big trouble. Always double-check your claims and documents before filing. Here are some common mistakes that you should avoid:
ITR Mistake 1: Claiming deductions under Section 80C without having proper bills or proof
ITR Mistake 2: Choosing the old tax regime to get deductions, then switching to the new one later
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