Filing an Income Tax Return (ITR) may feel routine, yet a minor slip‑up can delay your refund, invite penalties, or even trigger a tax notice. The Income‑tax Department’s data analytics now cross‑checks your return against Form 26AS, the Annual Information Statement (AIS) and other databases in seconds. That means accuracy matters more than ever. Below are a dozen errors Indian taxpayers still make in Assessment Year 2025‑26—and how to avoid them—explained in easy language. In this blog, we will discuss common mistakes made during ITR filing, so you can read it to gain a better understanding and file your ITR with confidence.
Common Mistakes to Avoid While Filing Income Tax Return (ITR)
1. Choosing the Wrong ITR Form
Every form is tailored to a different taxpayer profile. If you are a salaried resident with income ≤ ₹50 lakh, use ITR‑1; add capital gains and you move to ITR‑2; run a sole‑proprietorship, it is ITR‑3, and so on. Select the wrong form and the portal may mark your return “defective,” forcing a refiling and delaying refunds.
2. Mixing up the Assessment Year
The tax you earned in FY 2024‑25 is assessed in AY 2025‑26. Many filers still enter the previous year’s AY, which reroutes income to the wrong year and attracts late‑filing consequences when the mismatch emerges. Always double‑check the AY drop‑down before you submit.
3. Typing the Wrong Personal or Bank Details
Mistakes in name, PAN, date of birth, account number or IFSC code stall processing and bounce refunds back to the department. Review the pre‑filled fields and verify bank details on your cheque leaf or net‑banking screen before the final click.
4. Ignoring Form 26AS, AIS and TIS
Form 26AS shows every tax credit (TDS/TCS) and high‑value transaction reported against your PAN; AIS/TIS go a step further by listing dividends, mutual‑fund redemptions, credit‑card spends and more. If the income you report does not tally with these statements, expect a mismatch notice. Reconcile first, then file.
5. Leaving out Income from “other sources”
Interest on savings or FDs, dividends, winnings, rental income, previous‑employer salary, and even exempt income such as PPF interest must be reported. Omissions are easy for the portal to spot because banks, companies and employers have already reported the numbers.
6. Claiming Deductions without Proof—or Claiming the Wrong Ones
Section 80C, 80D, 80G and other deductions can slash your tax bill, but only if you have receipts, policy numbers or donation certificates. Claiming a deduction, you are not eligible for, or uploading no evidence, risks disallowance plus 50 per cent penalty for under‑reported income.
7. Mismatching TDS Details
If the TDS figure you type in the return differs from the figure in Form 26AS, the refund calculation will not match and the CPC will raise an intimation under Section 143(1). Always import the TDS schedule directly from the portal or cross‑check every row.
8. Skipping Capital Gains and Losses
Equity, mutual fund or property gains (and even losses) must be shown in the Capital Gains schedule. Many first‑time investors forget to include them, assuming small trades do not count. The broker, however, has already reported your trades; the portal flags the gap instantly.
9. Not e‑verifying within 30 days
Filing is only half the job; you must e‑verify (or post ITR‑V) within 30 days. Miss the deadline and the department treats your return as “not filed,” leading to a late fee under Section 234F and loss of carry‑forward for any losses you declared. Aadhaar OTP, net‑banking EVC or DSC are the fastest options.
10. Filing after the Due Date
For FY 2024‑25, the ordinary deadline is 31 July 2025, but it has already been extended to 15 September 2025. File later and you pay a late fee (up to ₹5,000), lose the chance to carry forward certain losses, and may face higher interest on unpaid tax. Plan documents early and avoid the last‑day site rush.
11. Entering the Wrong Refund Account, or Not Pre‑validating it
A refund can only be credited to a pre‑validated account. Wrong IFSC, closed account or non‑validation sends the money back to CPC, after which you must raise a “refund reissue” request and wait again. Pre‑validate the correct account on the portal before you file.
12. Trusting Dubious Intermediaries Promising “Big Refunds”
The tax department recently busted rackets where intermediaries filed inflated deductions for thousands of taxpayers in exchange for commissions. Over 40,000 people had to file updated returns and repay ₹1,045 crore. File yourself or engage only reputed professionals; you are legally liable for whatever goes in your name.
Quick checklist before you hit “Submit”
- Download and review your Form 26AS and AIS/TIS.
- Use the correct ITR form for your income mix.
- Match every TDS entry and interest figure.
- Check your personal data and bank account twice.
- Validate deductions with proofs.
- Pay any self‑assessment tax; generate a fresh challan if needed.
- Submit and e‑verify within 30 days.
Conclusion
A flawless tax return is not about being a genius with numbers; it is about slowing down, matching data, and reading the portal prompts. The Income‑tax Department gives you pre‑filled JSON files, validation rules and even an “updated return” window for honest corrections. Use these tools wisely, avoid the dozen pitfalls above, and your ITR for AY 2025‑26 should glide through processing, bringing your refund (or peace of mind) right on time.
FAQs
1. What happens if I file my ITR using the wrong form?
If you file your Income Tax Return using an incorrect form (for example, ITR-1 instead of ITR-2), the return may be marked as defective under Section 139(9). The Income Tax Department will notify you to correct and refile it within a specified time. Failing to do so can make your return invalid, delay your refund, or create legal complications.
2. Can I revise my ITR if I made a mistake after submitting it?
Yes, if you realize you’ve made an error in your filed return—like missing income or claiming the wrong deduction—you can file a revised return under Section 139(5) before 31 December of the assessment year (or the deadline specified for that year). For AY 2025-26, the revised return can be filed up to 31 December 2025, unless extended.
3. What should I do if my refund is delayed or not credited?
First, check your ITR status and verify if it’s been processed. Then confirm if your bank account is pre-validated and correctly entered in your return. If all details are correct and still no refund is received, you can raise a refund reissue request on the income tax portal.
