Desk
Share
Submitting your ITR correctly the first time is critical in preventing fines, delays in refunds, or receiving notices from the tax department. A considerable number of taxpayers are often in a rush or overlook important details, this could cause financial repercussions in the future. Below are some mistakes that occur frequently and some preventative measures.
1. Filing the Wrong ITR Form
The ITR forms are assigned according to the income and the category of the taxpayer. Filing the wrong form could cause a number of issues, such as your return having a defect or being rejected.
For the salaried employees with income not exceeding ₹50 lakh and do not have capital gains, ITR-1 is suitable.
Individuals earning income from capital gains as well as those having foreign earnings are best suited with ITR-2 or ITR-3.
Taxpayers with business or professional income should use ITR-3 or ITR-4 as suitable.
Generally, e-filing platforms assist in form selection, but do confirm with your income types, it is always best to double-check.
2. Forgetting to Report Each Earning
Declaring income from all sources is best practice, regardless of how minor it is:
Interest from saving and fixed deposit accounts.
Rental earnings, even if not received
Capital gains from movable and immovable assets.
Freelance or business side endeavors.
Cumulatively, all sides of undetected income could lead to notices of mismatch or scrutiny.
3. Wrong or Non-Matching Personal Information
Make sure your name, address, PAN, date of birth, and contact number details in the return are reconciled with the records in the Income Tax Department. Errors in these fields can invoke compliance concerns or delays in processing.
4. Not Reconciling Form 26AS and Annual Information Statement (AIS)
They both are issued concerning the income and tax paid by an employer, a bank, and any other eligible deducting agency. Always ensure to check these against the income declarations. Non-compliance can cause delays in processing refunds or increase the chances of being issued with a tax notice.
5. Failure to Update Bank Information
Refunds can only be issued in a timely manner if the bank account number and IFSC code are accurate. Incomplete or incorrect bank account details, or IFSC code can cause delays in processing or outright rejection of refunds.
6. Filing After the Prescribed Deadline
For FY 2024-25, the ITR filing deadline for the majority of the taxpayers not subjected to an audit is 15th of September 2025. Filing late incurs a fee of upto 5,000 rupees, needs to pay interest on overdue balances, and lose the option of forwarding losses.
7. Not E-Verification of ITR
You've got 30 days after filing to confirm ITR via e-verify using services like Aadhaar OTP, net banking, and digital signatures. Failure to do so will mean your ITR will not be processed.
8. Incorrect Deductions Claimed Fraudulently
Maintaining supporting documents is required for eligibility. Deductions should not be claimed from under the old tax regime if a switch to the new one has been made, as the two systems have stark differences.
9. Incorrect Income Classification
Income needs to be classified correctly as salary, capital gains, house property, etc. as misclassification could lead to incorrect tax calculations.
10. Submission Neglecting the Review
Attachments as well as their calculations need to be double-checked and cross-verified for accuracy. Accuracy in date formats (DD/MM/YYYY) also matters alongside spelling mistakes.
ITR Filing Tips for the Year 2025
Erroneous filings should be avoided by starting early.
For increased accuracy and confidence, e-filing systems and tax professionals should be used.
Receipts for investment and income, alongside TDS certificates, need to be kept in one location.
Income alongside tax-credit documents should not be forgotten to be checked on the Income Tax Department portal regularly.
Filing needs to be done after understanding the two tax regime differences.
Read More: The Rollercoaster Ride of Meesho From Multibagger Gains to Trading Below Listing Price
