New Delhi, Sept. 13 -- Filing income tax returns is a crucial financial responsibility, where taxpayers are required to declare their actual income accurately. However, some taxpayers may unintentionally underreport or misreport their earnings, which could lead to penalties. Whether due to confusion about what income is taxable or negligence, underreporting or misreporting can have several consequences.

With just a few days for the ITR filing due date, here's all you need to know about underreporting and misreporting income -

Underreporting income happens when someone reveals a lower amount than their actual earnings, which essentially means that a taxable part of the income is left out.

Misreporting income involves providing incorrect...