Income Tax Return (ITR) Mistakes
Filing your Income Tax Return (ITR) in India is not just about submitting a few forms — it requires accuracy, awareness, and careful reporting. Even minor mistakes can result in notices, penalty charges, or loss of refund.
Whether you're a salaried individual, a freelancer, or a small business owner, here are 10 common mistakes you must avoid while filing your ITR for Assessment Year 2025–26.
📌 1. Missing the ITR Filing Deadline
The last date to file ITR for most individuals is 15th September 2025 (Extended). Failing to file on time can result in:
- Late fee up to ₹5,000 under Section 234F
- Interest under Section 234A/B/C
- Inability to carry forward certain losses (like capital losses)
🟠 Tip: Set calendar reminders and file early to avoid last-minute glitches on the portal.
📌 2. Choosing the Wrong ITR Form
Using the incorrect ITR form is a common mistake. For example:
- ITR-1: For salaried individuals with income < ₹50L (not for capital gains or foreign income)
- ITR-2: For capital gains, foreign assets, etc.
- ITR-3: For business/professional income
🟠 Tip: Refer to the official ITR form guide or consult a CA/Tax Consultant before selecting the form.
📌 3. Not Reporting All Income Sources
Many taxpayers forget to report income such as:
- Savings account interest
- Fixed deposit (FD) interest
- Freelance or side gig income
- Rental income
- Dividend or crypto gains
🟠 Tip: Use Form 26AS and AIS (Annual Information Statement) to cross-verify all your incomes.
📌 4. Ignoring Form 26AS & AIS
These are the two most important documents while filing ITR:
- Form 26AS: Shows TDS deducted and reported by deductors
- AIS: Lists interest income, high-value transactions, etc.
Mismatch with these can trigger a tax notice from the Income Tax Department.
📌 5. Providing Incorrect Bank Account Details
Incorrect IFSC code or account number = No refund!
🟠 Tip: Double-check your pre-validated bank account in the Income Tax portal under your profile.
📌 6. Claiming Wrong or Excess Deductions
Incorrect claims under Section 80C, 80D, HRA, or home loan interest can cause the ITR to be rejected or flagged for scrutiny.
🟠 Tip: Only claim deductions for which you have proof (like LIC premium, PPF, health insurance receipts, etc.).
📌 7. Not Verifying the ITR
Just filing the return is not enough. You must e-verify within 30 days using:
- Aadhaar OTP
- Net banking
- Demat/Bank account
- Sending signed ITR-V to CPC Bengaluru
🟠 Tip: Use Aadhaar OTP or net banking for instant verification.
📌 8. PAN and Aadhaar Mismatch
If your PAN and Aadhaar details (name, DOB, gender) don’t match, your return may not be processed.
🟠 Tip: Ensure both are linked and details match exactly before filing.
📌 9. Filing for Wrong Assessment Year
AY 2025–26 corresponds to income earned between 1st April 2024 and 31st March 2025. Many first-time filers select the wrong AY.
🟠 Tip: Check the assessment year carefully in your ITR portal before submitting.
📌 10. Not Keeping Proof of Filing
Keep a copy of your filed ITR, acknowledgment, and supporting documents safe for at least 6 years. You may need them for loans, visas, or future scrutiny.
✅ Conclusion
Filing your Income Tax Return accurately is a legal duty — and a smart financial habit. Avoiding these common mistakes can save you from penalties, notices, or refund issues.
If you’re unsure how to proceed or want professional support — Kumar Ravi & Company is here to help.
👉 Contact us today to file your ITR with confidence!
Start writing here...