You’ve just hit ‘submit’ on your Income Tax Return, feeling relieved that you’ve beaten the deadline. But three months later, a notice lands in your inbox, or worse — your expected refund never arrives. Sounds familiar? You’re not alone. Every year, millions of taxpayers make seemingly small mistakes that lead to big headaches.
With the due date for filing tax returns for FY 2024-25 (AY 2025-26) set for 15 September 2025, it’s crucial to get your filing right. Filing an income tax return is mandatory if you have a refund claim or total income exceeding Rs. 2,50,000 under the old tax regime or Rs. 3,00,000 under the new tax regime. However, rushing through your return at the last moment often leads to avoidable mistakes that can trigger penalties, delays, or unwanted scrutiny.
But the good news is that most of these errors are completely preventable once you know what to look for. Whether you’re a first-time filer or a seasoned professional, this guide will help you navigate the common pitfalls that trip up even the smartest taxpayers, ensuring your ITR journey is smooth, compliant, and optimized for maximum benefits.
1. Choosing the wrong ITR Form
The tax department provides various forms to streamline the process. Choosing the wrong form can lead to defect notices and unnecessary complications.
Here’s your quick reference guide:
- ITR-1 (Sahaj): For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh and having Income from Salaries, one house property, other sources (Interest etc.), long-term capital gains under section 112A up to Rs. 1.25 lakh, and agricultural income up to Rs. 5,000.
- ITR-2: For Individuals and HUFs not having income from profits and gains of business or profession.
- ITR-3: This is for those with business or professional income.
- ITR-4 (Sugam): For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE, and having long-term capital gains under section 112A up to Rs. 1.25 lakh
Remember, it’s worth taking the extra few minutes to get this right from the start, as filing the wrong form can trigger defect notices and delays.
2. Quoting the wrong assessment year
This might seem like a small detail, but getting your Assessment Year (AY) wrong can create a domino effect of problems. For FY 2024-25, the correct corresponding AY is 2025-26—not 2024-25, which many taxpayers mistakenly use.
Why does this matter? Mentioning the wrong AY increases your chances of facing double taxation and attracts unnecessary penalties.
3. Furnishing incorrect personal information
Your personal details are the foundation of your tax return, and even small errors can cause big problems. Every piece of information—name, address, email, phone number, PAN, date of birth—must match exactly with your PAN card details.
So before hitting submit, cross-check these details with your PAN card and latest bank statement. A two-minute verification can save you weeks of follow-up hassles.
4. Not Disclosing all sources of income
Here’s where many taxpayers stumble: they think only their primary income needs to be reported. Wrong! The Income Tax Act requires disclosure of income from all sources, regardless of whether it’s taxable or exempt.
Commonly missed income sources include interest from savings accounts and fixed deposits, rental income from property, capital gains from investments, income from dividend, income from freelancing or part-time work, cash gifts exceeding prescribed limits.
Here’s a crucial point many miss: even exempt income must be disclosed. For example, long-term capital gains up to ₹1.25 lakh from equity shares might be tax-free, but you still need to mention them in the capital gains schedule
5. Form 26AS and TDS reconciliation errors
Form 26AS is your comprehensive tax credit statement showing all taxes deducted or collected on your behalf throughout the year. Before filing your ITR, you must cross-verify your income and TDS details with Form 26AS. For salaried employees, this means comparing your Form 16 (from your employer) with Form 26AS.
If you find discrepancies, contact your employer or the deductor immediately. Remember, if TDS isn’t reflected in Form 26AS, you won’t get credit for those tax deductions, regardless of what your certificates show.
6. Ignoring AIS and TIS information
The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) are important in tax filing.
The AIS provides comprehensive financial information including GST turnover, securities transactions, and foreign remittances. TIS is the consolidated summary of all the tax-related data that taxpayers need, such as filed tax forms, taxes paid, refunds obtained, and other pertinent information.
Review your AIS and TIS carefully and ensure all information is accurate. If you find discrepancies, you can provide feedback through the e-filing portal. The corrected information becomes the “derived value” that gets pre-filled in your return.
7. Multiple employer income reporting mistakes
Changed jobs during the financial year? You’ll receive Form 16 from each employer, and handling multiple Form 16s can be tricky. Many taxpayers get confused about how to report income from different employers.
The solution is straightforward: combine salary income from all employers under “Income from Salary.” Add up the total salary, total TDS, and other relevant details from all Form 16s. Don’t file separate returns for each job—combine everything into one comprehensive return that shows your complete employment history for the year.
8. Missing HRA claims
If you have chosen the old tax regime but didn’t submit rent receipts to your employer, you can still claim House Rent Allowance while filing your ITR. Many taxpayers miss this opportunity, thinking the benefit will be lost forever.
To claim HRA you will have to submit your rent receipts and your landlord’s PAN (if annual rent exceeds Rs. 1 lakh).
9. Deduction oversights – not claiming available deductions
This is perhaps the most expensive mistake on our list—leaving money on the table by not claiming legitimate deductions you’re legally entitled to. Popular deductions tax payers who have chosen the old tax regime frequently miss to include:
- Section 80C (up to Rs. 1.5 lakh): PPF contributions, ELSS investments, life insurance premiums, children’s tuition fees, principal repayment on home loans
- Section 80D: Health insurance premiums for self, family, and parents (limits vary by age and category)
- Section 24(b): Interest on home loans (up to Rs. 2 lakh for self-occupied property)
- Section 80G: Donations to eligible charitable institutions
Keep proper documentation throughout the year, and ensure all eligible deductions are claimed to optimize your tax liability.
10. E-verification failure
Here’s a mistake that catches many taxpayers off guard every year: filing your return on time but forgetting the crucial final step. You must e-verify it within 30 days to complete the process. This step confirms the authenticity of your submission and allows processing to begin. You can e-verify using:
- Net Banking: Quick and convenient through your bank’s portal
- Aadhaar OTP: Fastest method using your registered mobile number
- EVC: Electronic Verification Code sent to your email and mobile
If digital verification fails, print and sign the ITR-V form and send it to the Centralized Processing Centre (CPC) in Bengaluru via post—but within the 30-day window.
Your Income Tax Return is more than just paperwork—it’s your financial fingerprint with the government. By steering clear of these common mistakes, you’re not just avoiding penalties; you’re building a foundation of smart financial habits that will serve you for years to come.
File smart, stay compliant, and enjoy the peace of mind that comes with getting it right the first time.