Filing your Income Tax Return (ITR) correctly is essential to avoid unnecessary notices, penalties, or delays in refunds. For FY 2025-26 (AY 2026-27), the due dates are:
- 31st July 2026 – For individuals filing ITR-1 and ITR-2
- 31st August 2026 – For taxpayers filing ITR-3 and ITR-4
Many taxpayers tend to rush the process at the last moment, which often results in avoidable errors. Below are some common mistakes you should be careful about while filing your ITR.
- Choosing the Wrong ITR Form
Selecting the correct ITR form is crucial for proper processing.
- ITR-1: Suitable for salaried individuals with income up to ₹50 lakh and no capital gains
- ITR-3: Applicable for individuals with business or professional income
Using the wrong form can result in a defective return notice.
- Mentioning Incorrect Assessment Year
For income earned in FY 2025-26, the correct Assessment Year is AY 2026-27.
Incorrect selection may lead to errors in processing and possible tax complications.
- Incorrect Personal and Bank Details
Ensure that all personal information matches your PAN records:
- Name, date of birth, PAN
- Email ID and mobile number
- Bank account details (account number, IFSC)
Incorrect details can delay refunds or lead to rejection.
- Not Reporting All Income
All sources of income must be disclosed, such as:
- Interest from savings accounts and FDs
- Capital gains
- Rental income
- Other or exempt income
Even if certain income is exempt, it still needs to be reported in the relevant schedule.
- Errors in Data Entry
Incorrect formats (especially dates and numerical values) can lead to defective returns.
Always follow the prescribed format (e.g., DD/MM/YYYY).
- Not Verifying Form 26AS
Form 26AS contains details of:
- TDS and TCS
- Advance tax payments
- High-value transactions
Mismatch between Form 26AS and Form 16 may result in lower refunds or additional tax liability.
- Ignoring AIS and TIS
AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) provide a detailed overview of your financial data.
Ensure:
- Reported values match actual income
- Any discrepancies are corrected before filing
- Handling Multiple Form 16 Incorrectly
If you changed jobs during the year:
- Combine income from all employers
- Do not rely on a single Form 16
Incorrect reporting can lead to under-reporting of income.
- Missing HRA Claims
If HRA was not claimed through your employer:
- You can still claim it while filing your ITR
- Ensure you have proper rent receipts and landlord details
- Not Claiming Eligible Deductions
Many taxpayers miss out on deductions such as:
- Section 80C (investments)
- Section 80D (health insurance)
Not claiming eligible deductions increases your tax liability unnecessarily.
- Not Paying Advance Tax
Advance tax must be paid in instalments:
- 15th June
- 15th September
- 15th December
- 15th March
Failure to pay or short payment attracts interest.
- Incorrect Treatment of NSC Interest
Interest on NSC is taxable but can be claimed under Section 80C (except in the final year).
It must be reported under “Income from Other Sources.”
- Not E-Verifying the Return
After filing, your ITR must be verified within 30 days using:
- Aadhaar OTP
- Net banking
- EVC
If not verified, the return is treated as not filed.
- Ignoring Notices from the Department
Any communication from the tax department should be addressed promptly.
Ignoring notices can lead to penalties or further action.
- Not Filing Schedule AL
If your total income exceeds ₹50 lakh:
- Disclosure of assets and liabilities becomes mandatory
- Not Reporting Foreign Assets
Residents must disclose:
- Foreign bank accounts
- Investments and assets abroad
- Foreign income
Non-disclosure can lead to serious penalties under the Income Tax Act, 1961.
Conclusion
ITR filing requires attention to detail and proper understanding of tax provisions. Most mistakes occur due to incomplete information or last-minute filing.
By reviewing your return carefully and ensuring all disclosures are accurate, you can:
- Avoid notices and penalties
- Ensure faster refunds
- Maintain proper tax compliance
Taking a careful and structured approach can make the entire filing process smooth and hassle-free.
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Disclaimer
This article is for general informational purposes only and does not constitute professional advice. Income Tax Laws are subject to changes, and interpretations may vary.
Readers are advised to consult a qualified professional before making any decisions.