As the income tax return (ITR) filing season for FY 2025–26 (AY 2026–27) approaches, taxpayers are advised to exercise caution while preparing and submitting their returns. Common filing mistakes can lead to delays in refunds, additional tax liabilities, notices from the Income Tax Department and even penalties.
Tax experts say taxpayers should reconcile their income disclosures and tax credits with Form 26AS, the Annual Information Statement (AIS) and pre-filled data available on the income tax portal before filing returns.
“Before filing the return, it is advisable for the person to reconcile the income disclosed and the tax credit claimed with Form 26AS, the Annual Information Statement (AIS), and the pre-filled data available on the income-tax portal so as to minimise discrepancies and reduce the likelihood of notices being issued by the Tax Authorities,” an tax expert said.
Experts also caution that after filing the return, taxpayers must complete e-verification within the prescribed timeline, failing which the return may be treated as invalid.
Here are 10 common ITR filing mistakes taxpayers should avoid:
[1] Choosing the wrong ITR form
Filing the return under an incorrect ITR form may render the return defective and can delay processing.
[2] Not reporting all sources of income
Many taxpayers fail to disclose interest income, dividends, rental income, freelance earnings or foreign income, leading to under-reporting of income.
[3] Mismatch with AIS and Form 26AS
Differences between Form 16, AIS and Form 26AS may result in incorrect reporting and could trigger notices from the tax department.
[4] Claiming incorrect deductions
Claiming ineligible deductions or missing eligible deductions can affect tax liability and may invite scrutiny.
[5] Incorrect reporting of capital gains
Errors in reporting capital gains from shares, mutual funds or property transactions can result in tax demand notices.
[6] Incorrect or non-reporting of foreign assets
Failure to accurately disclose foreign assets and overseas income may attract penalties under the Income-tax Act.
[7] Selecting the wrong tax regime
Not properly comparing the old and new tax regimes before filing can increase overall tax outgo.
[8] Missing the ITR filing deadline
Delayed filing may lead to interest, late filing fees, denial of certain loss carry-forward benefits and exposure to penalty proceedings.
[9] Forgetting to e-verify the return
Returns not verified within the prescribed timeline are treated as invalid even if they have been filed successfully.
[10] Entering incorrect bank details
Incorrect or non-validated bank account details can result in failed refund credits and delays in receiving refunds.
Another tax expert said taxpayers should immediately check whether they are eligible to file a revised return if they discover any mistake after filing the original return.
“If, after filing the return, a person discovers any mistake, they should immediately determine whether they are eligible to file a revised return in order to correct the errors in the original return,” he said.
