Use Code: ITR40
File ITR Today
This year, the deadline has been extended to 15th September 2025. While the extended timeline may tempt you to delay filing, it’s important to know that stricter reporting rules, increased scrutiny, and key changes in the ITR process have also come into effect.
That’s why filing your return early is strongly recommended. Waiting till the last minute increases the risk of errors, which could affect your tax outcome or lead to unnecessary notices.
In this guide, we have listed some of the common mistakes that you must avoid while filing your ITR for the Financial Year (FY 24-25).
Some of the common mistakes made while filing an income tax return are:
Filing ITR using Incorrect Tax Form
Every taxable person is required to report all his income sources that are taxable and tax-exempted using the correct ITR form applicable to him/her. If the ITR is filed using the wrong form, then the return will be termed as 'defective.' It can lead to underreporting or misreporting of income and attract a penalty of upto 50% and 100% respectively. Therefore, choosing the correct ITR form is essential.
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Mentioning incorrect personal or correspondence details
Taxpayers should be vigilant while quoting their PAN, Aadhaar, and address details. Special attention should also be given when mentioning the mail ID and contact number. You must ensure that the details tally with those in your PAN. The Income Tax Department will send the Notices to the address given in the last ITR. So it's important to provide the correct address. It should also be noted that ITR-V will be sent to the email given in the ITR. A Reminder Text for E-Verification and Intimation text will be sent to the mobile number given in the ITR. Therefore, it is important to ensure you provide the correct details to avoid further confusion. It is also important to provide the correct Bank Account Number and IFS code to receive a speedy refund from the Income Tax Department.
Filing incorrect and incomplete bank details
Even a small typo in entering your bank account number or IFSC code might delay your refund. Remember, the Income Tax Department issues your tax refund into the bank account entered by you. Therefore, it is important to mention the correct details to get your refund on time.
Quoting the Wrong Assessment Year
At the time of filing your ITR, it is important to ensure that you enter the correct Assessment Year or AY for which you are filing the return. Mentioning the wrong AY can attract notices and penalties. Remember, Assessment Year is the Year in which you file the ITR. For example, for FY 24-25, AY will be 25-26.
Not Reporting All Income Sources
In recent years, the Income Tax Department has increased the reporting requirements. Taxpayers are now required to report their Virtual Digital assets and crypto income under Schedule VDA. Apart from this, people often miss reporting their freelancing income, income from interest, investments, share trading, etc. Failing to report all sources of income, irrespective of whether they are taxable or not, might attract notices and penalties.
However, senior citizens or super senior citizens can claim a deduction up to Rs. 50,000 under section 80 TTB from the total interest income earned in a financial year. It should be noted that FDR's interest will also be included in this.
People usually believe that an FD is taxable only when it is matured; however, the information about the interest income needs to be reported every year to the ITD under the head ‘Income from other sources’. The interest credited into the taxpayer’s account can be checked by him using the FDR statement.
In the case of fixed deposits, when TDS is deducted for interest credited by the bank, the same can be claimed in ITR when it comes in the taxpayer’s form - 26AS statement.
Note: The Income Tax Department has become stricter and started tracking fake deductions. To increase transparency, it has increased the reporting requirements. Taxpayers are now required to provide more details about the deductions claimed, like HRA, LTA, etc.
Not reconciling Form 26AS statement
Form 26AS provides an insight into the TDS deducted and deposited to the Income Tax department in a person’s name. It also provides details about the TCS collected and taxes which are being paid during the financial year against the PAN number.
All incomes included in Form 26AS must be reported, as these details are already there with the tax department. In case of any mismatch, the tax filer may be sent a notice. A mismatch in Form 26AS and Form 16 may also lead to lesser refunds received by the taxpayer.
Incorrect Exemptions and Deductions
Only claim the deductions and exemptions that you are eligible for. Claim all the deductions correctly. If you are not sure of which deductions and exemptions you can claim, you can also consider seeking help from tax professionals. Hire a Tax Expert!
Not reporting interest received on income tax refunds
Interest received on Income Tax refunds can be traced from Form 26AS and should be reported as income from other sources while filing your Income Tax Return.
Failure to E-Verify ITR V
Responsibility of filing the tax return doesn’t end with the filing of ITR only. Verifying the return within 30 days of filing is compulsory, as without it, the Income Tax Department will not process your tax return. You can verify ITR V offline by sending the ITR V (Acknowledgement) to CPC Bangalore using post or e- verify using Aadhaar OTP, EVC, etc.
Not clubbing incomes
According to the Income Tax Act, there are certain instances where the taxpayer must club the income of his minor child or spouse with his own income and pay taxes accordingly. A minor is a child below 18 earning an income that needs to be clubbed with the parent's income. However, the income tax department exempts Rs.1500 for each child. For Example, if an FD is made in a child's name, the interest income received should be reported to the income tax department by the child's parent.
Not keeping evidence of deductions claimed in income tax return
For all expenses/ investments claimed as deductions under Chapter VIA (Children's Tuition fees, LIC, PPF, Medical Insurance Policy, etc.), maintenance of records/evidence/ proofs of expenses/ investments is required. Claiming a deduction without adequate evidence can lead to the disallowance of such deductions and an increase in tax liability at the time of scrutiny assessment. So either have evidence for a particular expense/ investment, or else don’t claim a deduction for it. Your case can be taken for Income tax scrutiny for up to 6 years after the end of the year in which the return is filed. So, records need to be kept for 7 years.
Not Paying Advance Tax/ Self-Assessment Tax
Usually, TDS is deducted from the Salaried Income and Interest income received from the Bank. However, the taxpayer sometimes falls in the 30% tax bracket, and TDS on interest income is deducted at 10% or not deducted at all. So in such a case, tax needs to be calculated, which is payable additionally and needs to pay as an advance tax. Also, in the case of Rental income, assess the tax liability, and advance tax needs to be paid as per the provisions of the law. Self-Assessment tax is paid at the time of filing of return. And all the self-assessment and advance tax paid details need to be entered in the Income Tax Return filed.
Not reporting capital gains on switching units of mutual funds
These transactions are not reflected in the bank statements, so do not find a mention in the Income tax return. The profit earned on such transfers is unreported as they are not routed through the taxpayer's bank account. As switching or shifting from a particular scheme to another may result in profit or loss, it is advisable to report the same in the Income Tax Return.
Submitting Fake Invoices/ giving the wrong disclosure
Fake bills are mainly related to the deductions in accordance with Section 80C / 80D, etc. Fake invoices/rent receipts to claim HRA (House Rent Allowance) should not be submitted. There have been instances where individuals overstated the value of the bills despite the lesser cost of actual bills.
The Income Tax Department has started cracking down on such deductions and sending notices to taxpayers. Therefore, it is important to claim only the eligible deductions.
Not submitting Requisite Forms
To claim certain exemptions, the taxpayer must file some forms before filing returns. For instance, if you have received salary arrears in the financial year and need some relief for the increased tax liability under section 89(1), then Form no 10E needs to be filed. Another instance is when a taxpayer wants to claim foreign tax relief; filing Form 67 is required. You must file these forms before filing the income tax returns to claim these exemptions or benefits. Failure to fill out these forms will result in the individual being unable to claim the relief. This will also increase the chances of receipt of tax notices.
Not Determining Correct Residential Status
Incorrect determination of one’s residential status is one of the most common tax filing mistakes. The residential status has two parameters 60 days and 182 days. The first thing the taxpayer needs to do is get the residential status right, as this determines the scope of income that will be taxable in India. For instance, in the case of a resident person, all their income, including foreign income, is taxed in India. However, in the case of non-residents, only their income accruing or arising or deemed to be arising in India is taxed.
Income tax returns should be filed with utmost care because a small mistake while filing a return can land you in deep trouble with the Income Tax Department. You could end up getting penalized or even be served a tax notice. For instance, if a taxpayer file the income tax return in the wrong form, i.e., if an individual files ITR using a form that does not apply to him, then the tax officer, while processing the ITR form, may consider the return so filed as a defective return under the provision of section 139(9) of the Income Tax Act and send the notice u/s 139(9) as defective return notice.
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If an individual files a wrong ITR form, the return may be treated as defective or make the ITR invalid. Therefore, choosing the correct ITR form is critical. You can revise and correct the ITR till the end of the relevant assessment year. Correct this as soon as you receive the Notice of Defective Return from the Income Tax Department.
Every taxpayer is entitled to revise his income tax returns under section 139(5) to provide correct information to the Income tax department. Also, a taxpayer who has filed the belated returns will be allowed to revise on or before the last date of filing the return (31st December) or before the end of the assessment of the return, whichever is earlier. Earlier; belated ITRs were not allowed to be revised.
According to the current Income Tax laws, there is no penalty or fee for revising the income tax return.
There is no restriction on the number of times an income tax return can be revised. However, this needs to be revised on or before the last date of filing the return (31st December) or before the end of the assessment of the return, whichever is earlier.
If you filed an incorrect ITR before the due date, you can correct it by submitting a revised return. But if you choose the wrong ITR form, your return may be considered invalid.
If you filed an incorrect ITR before the due date, you can correct it by filing a revised return—but only after verifying the original return. However, if you selected the wrong ITR form, your return may be treated as invalid.
Income that is not disclosed in the Income Tax Return and on which tax has not been paid is considered unreported income.
