As the Income Tax Return (ITR) filing season for Assessment Year (AY) 2025-26 approaches, taxpayers across India are gearing up to gather essential documents like salary slips, bank interest certificates, Form 16, dividend statements, and other income-related records. While timely preparation is crucial, it is equally important to avoid common errors that can lead to penalties, scrutiny notices, or refund delays.
To help you file your income tax return smoothly and accurately, here are five common mistakes to steer clear of when filing your ITR this year:
1. Missing the ITR Filing Deadline
The last date to file ITR for AY 2025-26 is July 31, 2025, for most individual taxpayers. Failing to file within the deadline can lead to a late filing fee under Section 234F — ranging from ₹1,000 to ₹10,000 based on your income and the extent of the delay. Moreover, you may lose the eligibility to carry forward certain losses and deductions. Avoid last-minute rush and file well in advance to stay compliant.
2. Choosing the Wrong ITR Form
Selecting the appropriate ITR form is essential for successful return processing. Using the wrong form can lead to rejection or delay. For instance:
- ITR-1 is for salaried individuals earning up to ₹50 lakhs with income from one house property and other sources (like interest).
- ITR-2 is suitable for individuals with capital gains, more than one property, or foreign income.
Always check the latest ITR forms issued by the Income Tax Department to ensure you pick the right one based on your income sources.
3. Non-Disclosure of All Income Sources
Omitting income — whether intentional or accidental — can invite penalties and scrutiny. It is crucial to disclose:
- Interest from savings and fixed deposits
- Rental income
- Capital gains from mutual funds or shares
- Earnings from freelance work, crypto assets, or other side incomes
Even income from dormant bank accounts or small interest earnings should be included to avoid mismatches with AIS or Form 26AS.
4. Ignoring Form 26AS and AIS
Before filing your return, reconcile your income with Form 26AS and the Annual Information Statement (AIS). These documents reflect your tax deductions, TDS, and financial transactions reported to the Income Tax Department. Comparing them with your own records helps ensure that there are no discrepancies and increases the chances of quicker ITR processing and refund issuance.
5. Not Verifying Your ITR Post Filing
Filing your ITR isn’t the final step — you must verify it within 30 days. If not verified, the return will be treated as invalid. Verification can be done electronically via:
- Aadhaar-based OTP
- Net banking
- Demat account or through EVC (Electronic Verification Code)
Without verification, your return remains unprocessed, which could affect refunds and compliance status.
Final Thoughts
By avoiding these top 5 mistakes while filing ITR for AY 2025-26, you can ensure a hassle-free and accurate tax filing experience. Proper documentation, timely submission, correct form selection, and income reporting are key to staying on the right side of the tax laws. When in doubt, always consult a tax professional to guide you through the process.