7 Common e-Filing Mistakes Malaysian Taxpayers Make (And How to Avoid Them)

Filing your taxes through LHDN's e-Filing system should be straightforward, but thousands of Malaysians make costly mistakes every year. Some trigger audits, while others result in missed refunds or penalties.

Here are the 7 most common e-filing mistakes and how to avoid them.

Mistake #1: Entering Wrong Bank Account Details

The Problem: You've claimed RM5,000 in tax refunds, successfully filed your return, but the money never arrives. Why? Wrong bank account number.

Common errors:

• Typos in account number
• Using an old or closed account
• Entering someone else's account number
• Mismatched account holder name

How to avoid it:

• Double-check your account number against your bank statement
• Verify the account holder name matches your IC exactly
• Use your most active account (to notice the refund quickly)
• Take a screenshot after submission for your records

Mistake #2: Not Keeping Receipts

The Problem: LHDN operates on a "self-assessment" system. You declare your deductions, and they trust you. But they audit randomly, and if you can't produce receipts, your claims get rejected AND you face penalties.

What LHDN audits:

• Medical expenses (very common to audit)
• Lifestyle relief claims over RM2,000
• Education expenses
• Parent medical expenses

How to avoid it:

• Keep ALL receipts for 7 years (LHDN's legal requirement)
• Store digital copies (photos or PDFs) for easy access
• Organize by tax relief category
• Use CukaiMax for automatic 7-year compliant storage

Pro tip: Even if you paid by card, keep the receipt. Bank statements alone aren't sufficient proof.

Mistake #3: Missing the Deadline

The Problem: Late filing penalties are harsh:

• First offense: RM200 - RM20,000 fine OR up to 6 months jail
• Repeat offenders: Higher penalties

Deadlines:

• Employment income only: April 30
• Business income: June 30

How to avoid it:

• Set calendar reminders in March
• Don't wait until the last day (e-Filing may have technical issues)
• Gather documents in February/March
• File early to get refunds faster

Mistake #4: Claiming Duplicate Reliefs

The Problem: Some expenses can only be claimed once, even if they fit multiple categories.

Common duplicates:

• Claiming a computer under both "lifestyle relief" AND "self-employed business expenses"
• Life insurance premium claimed under both "life insurance relief" AND "EPF/insurance combined relief"
• Child's education claimed by both parents (if filing separately)

How to avoid it:

• Claim each expense in only ONE category
• If married filing separately, coordinate who claims what
• Choose the category with the highest benefit (usually they're the same)

Mistake #5: Wrong MTD Number or Employer Info

The Problem: Your employer registers you with LHDN using your MTD number (tax file number). If this doesn't match your e-Filing, it creates a mismatch.

Symptoms:

• Your EA form (from employer) doesn't appear in e-Filing
• Your declared income doesn't match LHDN's records
• You get flagged for review

How to avoid it:

• Verify your MTD number with your employer's HR
• Check that your EA form is visible in e-Filing before filing
• If missing, contact your employer immediately
• Update your personal details if you've changed name/IC

Mistake #6: Not Reporting All Income Sources

The Problem: You must report ALL income, not just your main employment:

• Freelance work
• Rental income
• Investment dividends (above RM2,000)
• Director's fees
• Interest income (above RM3,000)

Consequences:

• LHDN already receives data from employers, banks, and property registries
• They KNOW if you have other income
• Not declaring it is tax evasion, which carries serious penalties

How to avoid it:

• List all income sources before filing
• Include even small amounts
• If unsure if something is taxable, declare it anyway
• Keep records of all income sources

Mistake #7: Not Claiming All Eligible Reliefs

The Problem: The opposite of over-claiming: leaving money on the table.

Commonly missed reliefs:

• RM2,500 lifestyle relief (especially internet bills)
• Parents' medical expenses (RM8,000)
• Disabled person supporting equipment (RM6,000)
• Alimony payments to ex-spouse
• SOCSO contributions (self-employed)

Example: Missing the RM2,500 lifestyle relief at 24% tax bracket = losing RM600 in tax savings!

How to avoid it:

• Review the FULL list of available reliefs each year
• Use CukaiMax to discover reliefs you qualify for
• Don't assume you're not eligible—check the criteria
• Ask a tax professional if you're unsure

Pre-Filing Checklist

Before you click "Submit" on e-Filing:

✅ Documents ready:

• EA form from employer
• All receipts organized by category
• Bank account details verified
• MTD number confirmed

✅ Income declared:

• Employment income (from EA form)
• Freelance/side income
• Rental income
• Investment income
• Other taxable income

✅ Reliefs maximized:

• Individual relief (RM9,000)
• Lifestyle relief (up to RM2,500)
• EPF/PRS (up to RM4,000)
• Medical expenses
• Education expenses
• Other applicable reliefs

✅ Details verified:

• Bank account number correct
• Personal details up to date
• Calculations double-checked
• All fields completed

After You File

1. Save your confirmation email - Print or save the PDF
2. Save the Acknowledgement Receipt - You'll need this reference number
3. Monitor for refund - Should arrive within 30-90 days
4. Store your documents - Keep for 7 years

Make Filing Error-Free

CukaiMax eliminates filing errors by:

✓ Auto-categorizing receipts - No more guessing which relief to claim ✓ Tracking relief caps - Never over-claim or under-claim ✓ Secure 7-year storage - LHDN audit-ready receipts ✓ Pre-filing summary - Review everything before you file ✓ Deadline reminders - Never miss April 30 again

File with confidence. Start your 7-day free trial today.

This article is for informational purposes only and does not constitute tax advice. Consult LHDN or a tax professional for specific guidance.