The deadline for filing Income Tax Returns (ITR) for the financial year is September 15, 2025, and taxpayers are being urged to exercise extra caution. This year alone, nearly 1.65 lakh cases have been flagged for scrutiny, highlighting that simply submitting a return is not enough — accuracy and transparency are crucial.
Many individuals, especially salaried employees and freelancers, unintentionally commit errors that can lead to penalties or tax notices. To help you avoid unnecessary trouble, here are eight mistakes you must steer clear of while filing your ITR.
One of the most common reasons for receiving a notice is a mismatch between the tax deducted at source (TDS) reflected in Form 26AS or the Annual Information Statement (AIS) and the income you have reported. If your declared income does not align with these records, the Income Tax Department may raise red flags. Always cross-check your TDS details before final submission.
Claiming deductions under sections such as 80C, 80D, or HRA without valid proof or inflating the actual figures can backfire. The tax authorities impose severe penalties — up to 50% of the tax amount for inaccurate claims, and as high as 200% for fraudulent documentation. Ensure that all deduction claims are genuine and backed by proper evidence.
Large financial transactions are closely monitored by the tax department. For instance, depositing over ₹10 lakh in cash, making credit card payments above ₹2 lakh, or investing more than ₹1 lakh in shares must be accurately reported. Hiding such transactions could result in a notice or detailed scrutiny.
If your reported income shows a sharp decline compared to the previous year, the tax authorities may ask for clarification. In such cases, you should be prepared with relevant supporting documents like salary slips, termination letters, or proof of job loss to justify the decrease.
Switching jobs during the financial year often leads to errors in ITR filing. Many taxpayers forget to club incomes from both employers, which can cause discrepancies. Additionally, claiming deductions separately from both organizations raises suspicion. Always consolidate your total income before filing.
Submitting false entries, hiding bank accounts, or fabricating documents is a serious offense. Under Section 271AAD, taxpayers caught indulging in fraudulent practices face hefty penalties and strict legal consequences. Maintaining transparency is the safest approach.
Each category of taxpayer — salaried, business owner, or investor — must use the correct ITR form. Filing under the wrong category may result in income being misreported, automatically leading to notices or penalties. It is advisable to consult a tax expert if you are unsure about which form applies to you.
If you do receive a tax notice, the first step is to verify its authenticity by checking the Document Identification Number (DIN). Next, identify the section under which the notice has been issued — such as 139(9) for defective returns or 143(2) for scrutiny assessment. Collect all relevant documents, seek professional advice if required, and respond within the stipulated timeline to avoid further complications.
As the September 15 ITR filing deadline approaches, taxpayers must be vigilant. Filing an accurate return is not just about meeting a legal requirement — it is also about safeguarding yourself from potential scrutiny, penalties, and stress. Double-check your documents, avoid misreporting, and when in doubt, seek professional assistance. Remember, accuracy is the best defense against income tax notices.
