Income Tax

Mistakes to Avoid While Filing Your Income Tax Return (ITR)

by TaxAcumen Team

Filing your Income Tax Return (ITR) is a responsibility every taxpayer must fulfil. Filing correctly and on time saves you from fines, delays, and unnecessary issues. However, many people, especially first-time taxpayers, make common mistakes that can lead to problems like notices from the Income Tax Department, delayed refunds, or rejection of the return.

Here are some important mistakes to avoid while filing your ITR to make the process smooth and hassle-free.

1. Selecting the Wrong ITR Form

Choosing the correct ITR form is the first and most important step. The Income Tax Department has different forms for different types of taxpayers and income sources.

For example:

  • ITR-1 (Sahaj)
  • ITR-2
  • ITR-3
  • ITR-4 (Sugam)
  • ITR-5
  • ITR-6
  • ITR-7

What to do: Check your income sources carefully and select the right form. Filing the wrong form can lead to rejection or notices from the department.

2. Failing to Include All Income

Many people only report their salary and forget other income, like:

  • Bank interest (savings account, fixed deposits)
  • Rental income
  • Dividend from shares or mutual funds
  • Freelance or part-time earnings
  • Capital gains from shares, mutual funds, or property

What to do: Download your Form 26AS and AIS (Annual Information Statement) from the Income Tax portal to check all income reported to the government. Missing out on these details may result in notices or penalties.

3. Giving Incorrect Personal Details

Simple errors like wrong bank account details, PAN, Aadhaar, or email can delay your refund or lead to authorisation issues.

What to do: double-check your PAN, Aadhaar number, bank account number, and IFSC code before submitting your return.

4. Not Matching Your ITR with Form 26AS and AIS

Form 26AS: Shows the tax deducted by your employer, banks, or others.

AIS: Contains details of your income and financial transactions.

What to do: Compare the tax deducted, income earned, and other details in your Form 26AS and AIS before filing your return to avoid mismatches.

5. Ignoring Allowable Deductions

Many taxpayers forget to claim deductions under Chapter VI-A, which can help reduce their tax burden.

The most common deductions include:

  • Section 80C – Investments in PPF, LIC, ELSS, etc. (up to ₹1.5 lakh)
  • Section 80D – Health insurance premium
  • Section 80G – Donations to eligible charities
  • Section 80TTA/80TTB – Interest from savings accounts (₹10,000 or ₹50,000 for senior citizens)

What to do: Keep records of all eligible investments and expenses and claim them properly while filing ITR.

6. Forgetting to Verify Your ITR

Filing the return is not enough. You must verify your ITR within 30 days; otherwise, your return will be considered invalid.

You can verify by:

  • Aadhaar OTP
  • Net banking
  • Demat account
  • Sending a signed physical ITR-V to CPC, Bengaluru

What to do: Complete the verification process immediately after filing to avoid any issues.

7. Missing the Filing Deadline

For FY 2024-25 (AY 2025-26), the last date to file your ITR is 15th September 2025 for salaried individuals and small taxpayers.

Consequences of late filing:

  • In case of late filing, Section 234F imposes a late fee of ₹5,000 if your total income exceeds Rs. 5 lakh and ₹1,000 if your total income is within Rs. 5 lakh.
  • Interest on unpaid taxes
  • Loss of some deductions and carry forward of losses

What to do: File your return well before the due date to avoid penalties and last-minute website glitches.

8. Wrong Calculation of Capital Gains

If you sold shares, mutual funds, property, or gold, you need to calculate capital gains carefully. Applying incorrect tax rates or ignoring indexation benefits can lead to mistakes.

What to do: Use reliable tools or consult a tax expert to calculate capital gains correctly.

Conclusion

Filing your ITR correctly is as important as filing it on time. Small errors like wrong details, missing income, or incorrect deductions can lead to notices, penalties, or refund delays. Always cross-check your documents, like Form 26AS, AIS, and investment proofs, before submitting your return.