ITR Filing 2025: Know These Key Mistakes To Avoid
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Taxpayers must avoid errors in ITR filing for AY26 to prevent issues. Common mistakes include incorrect details, mismatches, not reporting all income, and choosing wrong form.
As the income tax return (ITR) filing season is going on for the assessment year (AY) 2025-26, taxpayers — whether salaried professionals, freelancers, or small business owners — must tread carefully to avoid costly errors. While digital filing has made the process faster and easier, even minor mistakes can result in notices from the tax department, delayed refunds, or penalties.
The income tax department has tightened data tracking through tools like the annual information statement (AIS) and Form 26AS. With financial data increasingly interlinked and prefilled forms more common, discrepancies stand out more than ever.
Incorrect personal details: Many returns are rejected or held up due to basic errors in name, PAN, Aadhaar, bank account details, or address. Ensure that all personal information matches official records.
Mismatch in Form 16 and AIS/Form 26AS: Salaried individuals often rely solely on Form 16, but must cross-verify it with the AIS and Form 26AS to catch any discrepancies in income, TDS, or other tax credits. Mismatches can lead to underreporting, even if unintentional.
Not reporting all sources of income: This includes savings bank interest, fixed deposit interest, dividends, capital gains from stocks or mutual funds, rental income, or foreign income. Freelancers and business owners must also disclose all receipts—even if tax hasn't been deducted at source.
Choosing the wrong ITR form: Filing under the incorrect ITR form is a common error and can render the return defective. For example, ITR-1 is not meant for those with capital gains or foreign assets. Taxpayers should review the eligibility criteria before selecting the form.
Filing without verification: Submitting an ITR is not the last step. The return must be verified electronically via Aadhaar OTP, net banking, or by sending a signed physical ITR-V form to CPC, Bengaluru. An unverified return is treated as not filed.
Ignoring advance tax or self-assessment tax: Taxpayers with income from business, capital gains, or freelancing must pay taxes in advance if their liability exceeds Rs 10,000 in a financial year. Missing this step may lead to interest under sections 234B and 234C.
This year, the last date for filing ITR for most individuals is September 15, 2025.
If you've already filed and spotted a mistake, don't panic. The income tax department allows revision of returns within the stipulated time — currently until December 31, 2025, for AY 2025-26. A revised return can help correct errors and avoid penalties.
First Published:
June 15, 2025, 08:53 IST
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