Filing your Income Tax Return (ITR) correctly is just as important as filing it on time. For FY 2025-26 (AY 2026-27), the due dates are:
- 31st July 2026 – For individuals filing ITR-1 and ITR-2
- 31st August 2026 – For taxpayers filing ITR-3 and ITR-4
Rushing at the last moment often leads to errors that can result in notices, penalties, or delayed refunds. Below are some of the most common mistakes taxpayers make—and how to avoid them.
- Selecting the Incorrect ITR Form
Choosing the wrong ITR form can lead to defective return notices.
- ITR-1: Salaried individuals, income up to ₹50 lakh, no capital gains
- ITR-3: Business or professional income
Always ensure the form matches your income profile.
- Quoting the Wrong Assessment Year
For FY 2025-26, the correct Assessment Year is AY 2026-27.
Incorrect selection can lead to processing errors and even double taxation issues.
- Incorrect Personal Details
Ensure accuracy in:
- Name, PAN, date of birth
- Email ID and phone number
- Bank account details (for refunds)
Even small mismatches can delay refunds or trigger errors.
- Not Reporting All Sources of Income
All income must be disclosed, including:
- Interest from savings and fixed deposits
- Capital gains
- Rental income
- Exempt income
Even partially exempt income (like certain capital gains) must still be reported.
- Incorrect Data Entry Format
ITR forms require specific formats (e.g., DD/MM/YYYY for dates).
Incorrect formats can result in defective returns.
- Not Reconciling with Form 26AS
Form 26AS reflects:
- TDS/TCS
- Advance tax
- High-value transactions
Mismatch with Form 16 or TDS certificates may lead to:
- Lower refunds
- Higher tax demand
- Ignoring AIS and TIS
AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) provide a comprehensive view of:
- Income
- Investments
- Financial transactions
Ensure the reported and derived values match your actual data.
- Multiple Form 16 Issues
If you changed jobs during the year:
- Combine income from all employers
- Do not file based on a single Form 16
- Missing HRA Claims
If HRA was not claimed through your employer:
- You can still claim it while filing ITR
- Ensure landlord PAN and rent details are available
- Not Claiming Eligible Deductions
Common deductions include:
- Section 80C (investments)
- Section 80D (health insurance)
- Donations and other eligible expenses
Missing deductions = higher tax outflow.
- Not Paying Advance Tax
Advance tax must be paid in installments:
- 15th June
- 15th September
- 15th December
- 15th March
Delay or shortfall attracts interest @ 1% per month.
- Ignoring Taxability of NSC Interest
- NSC interest is taxable
- Can be claimed under Section 80C (except final year)
- Must be reported under “Income from Other Sources”
- Not E-Verifying the ITR
After filing, ITR must be verified within 30 days via:
- Net banking
- Aadhaar OTP
- EVC
Failure to verify = return treated as not filed.
- Ignoring Notices from the Tax Department
Always respond to notices promptly.
Ignoring them can lead to:
- Penalties
- Legal consequences
- Not Filing Schedule AL (Assets & Liabilities)
If your income exceeds ₹50 lakh:
- Disclosure of assets and liabilities is mandatory
- Not Disclosing Foreign Assets
Residents (ROR) must report:
- Foreign bank accounts
- Shares, ESOPs, mutual funds
- Overseas income
Non-disclosure can attract strict penalties under the Income Tax Act, 1961.
Conclusion
Filing your ITR is not just a routine task—it’s a critical compliance activity. Most errors happen due to lack of awareness or last-minute filing. Taking a little extra time to review your return can help you:
- Avoid notices and penalties
- Maximise your refund
- Ensure smooth processing
A careful and informed approach can make ITR filing simple, accurate, and stress-free.
Ushma & Associates – Chartered Accountants
📞 Contact: +91-9910075924
Disclaimer
This article is for general informational purposes only and does not constitute professional advice. Income Tax Laws are subject to changes, and interpretations may vary.
Readers are advised to consult a qualified professional before making any decisions.
