With the Income Tax Return (ITR) filing deadline of July 31, 2025 fast approaching, taxpayers must be cautious while filing their returns. A single error can not only lead to penalties but also delay the processing of your return or even cancel some of your tax benefits.
Here are five common mistakes that you should avoid while filing your ITR this year:
The most common and costly mistake is missing the deadline. For most taxpayers, the last date to file ITR is July 31, 2025. If you miss this deadline, you could be liable to pay a late fee of up to ₹5,000 under Section 234F of the Income Tax Act.
Moreover, you may lose the option to carry forward certain losses (like capital losses) to future years. Timely filing ensures smooth processing and helps avoid unnecessary scrutiny.
Filing your return using the incorrect ITR form can cause your return to be rejected or delayed in processing. For example:
If you're a salaried individual earning less than ₹50 lakh annually, and you have no capital gains, business income, or foreign income, then ITR-1 (Sahaj) is the right form.
Even if you earn stock market income along with salary, you may still use ITR-1, provided it qualifies under the specified conditions this year.
Always read the eligibility criteria for each ITR form carefully before selecting the appropriate one.
A frequent mistake is not declaring small or passive income, such as:
Interest from savings accounts or FDs
Dividend income
Freelance earnings
Rental income
Failure to disclose all sources of income can attract notices from the Income Tax Department, along with penalties and interest on unpaid tax. Make sure to report even the smallest income to avoid legal trouble.
Before filing your ITR, it's crucial to cross-check your income and TDS details with:
Form 26AS (Tax Credit Statement)
AIS (Annual Information Statement)
These forms provide a complete record of taxes deducted by employers, banks, or other institutions. If there is any mismatch between these statements and the information provided in your ITR, the return may be flagged for review or delay.
Log in to the Income Tax e-filing portal and download these forms before proceeding.
Filing your ITR is not complete until you verify it. If your return is not verified within 30 days, it is treated as invalid. You can verify your return using:
Aadhaar-based OTP
Net banking
Demat account
Or by sending a signed physical ITR-V to the CPC office in Bengaluru.
Make sure to complete the verification step immediately after filing to ensure the process is complete.
Keep your bank account details updated for faster refund processing.
Double-check deductions under Sections 80C, 80D, etc., to maximize tax benefits.
File returns early to avoid last-minute hassles and website slowdowns.
Filing your ITR accurately and on time is not just a compliance requirement, but also a step toward better financial planning. Avoid these common mistakes to ensure a smooth and hassle-free tax filing experience in 2025.
