[attachment file=39632]

ITR can be rejected due to multiple reasons by the Income Tax Department but the situation has nothing to panic about as the department intimate the reason for rejection in the notice and gives you the chance to rectify it.

Income Tax Return Getting Rejected by the Department

There may be several reasons for getting an ITR rejection notice from the department. Maybe the formalities in the returns are incomplete or the taxpayer failed to verify the details of the taxpayer’s signature on the documents are inappropriate. Other reasons may include delay in e-filing of ITR or the information filed is not in proper format as demanded by the department.

Tax Department Notifies ITR Rejection Along with the Reason

Upon seeing the status ‘ITR-V has been rejected’ one must click on the acknowledgment number which shows the reason for ITR rejection. A message is displayed on the screen showing the reason for rejection. There could be multiple reasons for rejection. IRS shows such notifications upon realizing that the information is improper or incorrect.

Re-filing Income Tax Return

A certain time limit is allocated to the taxpayer for rectifying the mistakes in the ITR form and re-file adhering to the protocols of the legal department. The taxpayer will come to know the status of the application (accepted or rejected) within 48 hours of filing.

If the ITR is rejected at once, the correct ITR needs to be filed within five days of receiving the message of rejection to avoid penalty. In case you are sending your tax return via mail, then the allotted time limit will extend to 10 days starting from the date of receiving the rejection notice.

Filing tax returns including paperwork is granted more time because error codes do not apply. In case if IRS accepts your returns and you still find some error in the form then you have three days (starting from the date of filing the return) to rectify the error and re-file the correct return.

Tips to Escape ITR Rejections

One must make sure that the information provided by him should be appropriate and in a prescribed format along with proper signatures. ITR should be filed on time i.e. before the assigned due date. Last but not least one must appropriately mention his/her income in the returns or else the situation may invite a taxman for investigation.

Let's Find out the Types of Income to be Mentioned in the ITR:

1. Salaries - Salary si the form of monthly income received from the employer. Salary above certain limits is taxable under the law and needs to be mentioned in the ITR.
2. Residential Property - The income received by the owner from the property he/she has given on lease or rent is taxable under the law.
3. Business profits - Money earned through business or any other extra profit also comes under the ambit of taxable income.
4. Other Incomes - Earnings through lotteries, gifts, vouchers, bonuses, donations or interests need to be mentioned in the ITR as they fall under the category of taxable income.

Look here for govt authorized Gen IT software demo utility which the Indian taxpayer can free download as Gen income tax return filing software demo full version for all his ITR filing requirements.