Top 5 Mistakes People Make While Filing ITR

Filing your Income Tax Return (ITR) can seem like a straightforward task — log in, fill in the details, hit submit. But in reality, even a small oversight can lead to notices from the IT department, delayed refunds, or even penalties. And what’s surprising? Many of these mistakes are quite avoidable.

Whether you're a salaried individual, freelancer, or small business owner, here’s a look at the top 5 common mistakes people make while filing their ITR, and what you can do differently this year.

1. Choosing the Wrong ITR Form

One of the most common blunders is selecting the wrong ITR form. Each form caters to a specific type of income and taxpayer category. Using the wrong one can make your return invalid — even if you've filled in everything correctly.

💡Quick Tip:

If you are a salaried individual with additional income from interest or rent, ITR-1 might suit you. But if you have capital gains or foreign income, you'll need to go with ITR-2 or beyond.

✅ When in doubt, consult with a tax advisor or use a platform that helps auto-select the right form.

🔄 2. Mismatch in Income and TDS Details

Many taxpayers forget to reconcile their Form 26AS or AIS (Annual Information Statement) with the actual TDS certificates or salary slips. A mismatch in income or tax deducted can trigger notices from the Income Tax Department.

💡Quick Tip:

Download your Form 26AS and AIS from the Income Tax portal before filing. Ensure all figures match your records — especially interest from FDs, mutual fund redemptions, or dividends.

🧾 3. Not Disclosing All Sources of Income

It’s a myth that only salaried income matters in ITR. You are required to disclose all income sources, even if they are exempt or below the taxable limit — this includes rental income, savings interest, stock dividends, or freelance side gigs.

💡Why It Matters:

Undisclosed income, even small amounts, can lead to scrutiny under income tax rules. Transparency builds credibility and helps avoid future hassles.

🕓 4. Missing the Filing Deadline

While the government provides enough time to file returns, many people wait until the last moment. Result? Rushed filings, missed details, and sometimes, missing the deadline altogether.

💡What’s at Stake:

• ₹5,000 late filing penalty (₹1,000 if income < ₹5 lakh)
• Delay in processing refunds
• Ineligibility to carry forward capital losses

Mark the calendar: For FY 2024–25, the due date for most individual taxpayers is 31st July 2025.

✍️ 5. Skipping Verification After Filing

Filing your ITR isn't the final step. You must verify it within 30 days using Aadhaar OTP, net banking, or by physically sending the ITR-V to CPC, Bengaluru. Many forget this crucial last step, which leads to the return being treated as invalid.

💡Quick Fix:

After submitting your ITR, verify it immediately. It takes just a few seconds online. Don't let your effort go to waste.

💼 Final Thoughts: Avoid These, File Smartly

Filing taxes is a yearly ritual that can either be smooth and stress-free — or full of corrections, notices, and delays. The difference often lies in attention to detail and a bit of guidance.

If you're unsure, it's always best to take professional help.

FAQs

1. What happens if I choose the wrong ITR form?

Your return may be marked defective or invalid. You'll have to file a revised return using the correct form.

2. Can I file ITR without showing savings interest or dividends?

No. Even exempt or low-income sources should be disclosed to avoid discrepancies.

3. How can I verify my ITR?

You can use Aadhaar OTP, net banking, or send a signed ITR-V form to the CPC office.

4. What if I miss the 31st July deadline?

You'll have to file a belated return with a late fee and may lose out on some deductions or carry-forward benefits.