As the deadline for filing income tax returns for Assessment Year 2025-26 approaches, taxpayers across India are rushing to complete the process. But in this race against time, even minor oversights can lead to major issues—like delayed refunds, scrutiny from the IT department, or hefty penalties.

Whether you’re a salaried employee, a freelancer, or a small business owner, it’s more important than ever to stay informed. The income tax department has tightened data surveillance through tools like the Annual Information Statement (AIS) and Form 26AS, making discrepancies far more visible. Here’s a breakdown of the most common income tax return filing mistakes and how to steer clear of them this year.

Common ITR Filing Errors to Watch Out For in AY 2025-26

1. Incorrect personal information: A simple mismatch in your PAN, Aadhaar, bank account, or address details can get your return rejected. Double-check all entries against official records before submission.

2. Ignoring mismatches between Form 16 and AIS/Form 26AS: Don’t just rely on your Form 16. Cross-reference income and tax deductions with your AIS and Form 26AS. Discrepancies—even if accidental—can trigger underreporting notices.

3. Not reporting all income sources: Income from savings account interest, FDs, dividends, capital gains, rental income, or international sources must be disclosed. Freelancers and business owners should report all earnings, even if no TDS was deducted.

4. Choosing the wrong ITR form: Each ITR form serves a different purpose. For example, ITR-1 is not meant for those with capital gains or foreign income. Filing the wrong one can lead to a “defective return” status, delaying your assessment.

5. Missing out on deductions and exemptions: Don’t leave money on the table. Leverage Section 80C for life insurance, PPF, and EPF; 80D for health insurance; 80TTA for savings interest; and 24(b) for home loan interest. These can significantly reduce your tax burden.

Steps to Ensure a Smooth Income Tax Return Filing Process

6. Verifying your return: Filing isn’t complete until it’s verified. Use Aadhaar OTP, net banking, or mail the signed ITR-V form to CPC Bengaluru. Unverified returns are considered invalid.

7. Ignoring advance or self-assessment tax: If your tax liability exceeds ₹10,000, you’re required to pay advance tax. Missing this can attract interest under Sections 234B and 234C. Plan your tax payments accordingly.

8. Missed something after filing? Don’t worry. You can revise your ITR by December 31, 2025, for AY 2025-26. Use this opportunity to fix errors and avoid future complications.

The last date to file ITR without penalty for most individuals is September 15, 2025. Start early, double-check every detail, and use verified online platforms or consult a tax expert to stay compliant and stress-free.

For more information, visit the official Income Tax India e-filing portal.