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The time has come to file Income Tax Return (ITR) for the financial year 2025-26. If you do not file your tax return on time and correctly, you may face serious problems like income tax notices, delayed refunds, additional interest and heavy penalties. In today’s digital era, the Income Tax Department is meticulously examining the data of every taxpayer with the help of Artificial Intelligence (AI) and advanced data analytics. In such a situation, even a small mistake made unknowingly can become a big problem for you. Let us know which 15 main mistakes you should avoid at all costs while filling ITR.
1. Claiming wrong deduction or exemption
These days the Income Tax Department is most strict in such matters. Showing tax deductions in the wrong section, claiming House Rent Allowance (HRA) or other exemptions without any solid evidence or receipt directly amounts to tax evasion, which can lead to an immediate notice from the department.
2. Choosing the wrong ITR form
It is very important for taxpayers to choose the right form as per their source of income:
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ITR-1 (Spontaneous): This form is for those salaried people whose total income is up to Rs 50 lakh and they have not made any capital gain.
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ITR-3: This form is for those people whose source of income is business or profession.
If you choose the wrong form, the Income Tax Department may declare your return invalid and issue a ‘defective notice’.
3. Filling wrong assessment year (AY)
It is very important to understand the difference between Financial Year and Assessment Year. Correct assessment year for financial year 2025-26 2026-27 will be. Choosing wrong AY will spoil your tax calculation and you may have to pay penalty.
4. Entering incorrect personal and bank information
Your name, address, mobile number, email ID, date of birth and PAN number in the ITR form should always be as per your official PAN record. Also, if you are due a tax refund, enter your bank account number and IFSC code correctly and validated, otherwise your refund may be put in limbo.
5. Hiding all sources of income
Many people think that just giving salary information is enough, which is absolutely wrong. It is mandatory for you to give details of every small and big earning of yours, like-
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Interest received from savings account and fixed deposit (FD)
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Rental income from house or shop
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Dividends and capital gains from shares or mutual funds
Remember, even if any income falls in the tax-free category, it is still required to be shown in the return.
6. Filling information in wrong format
While filing ITR, important information like date should always be mentioned in the prescribed format i.e. DD/MM/YYYY Fill in only. Using the wrong format will cause the system software to show an error in your return.
7. Mismatch with Form 26AS
Before submitting your return Form 26AS And Form 16 Make sure to match. If the TDS deducted by your company or bank is not reflected in your Form 26AS, then you will not be able to get the credit (benefit) of that deducted tax.
8. Not checking AIS and TIS
The Income Tax Department has a complete record of every major financial transaction of yours. Annual Information Statement (AIS) And Taxpayer Information Summary (TIS) Appears in. Before filing ITR, make sure that your declared income matches completely with these two statements.
9. Not using Form 16 of two companies correctly
If you have changed your job during the respective financial year and you have received Form 16 from two different employers, then you have to add the total salary received from both the companies and show it in ITR. Failure to do so makes the tax liability appear less, due to which the department sends a notice.
10. Not being able to claim HRA from the employer
If you were not able to submit the rent receipts in your company on time and have not received HRA exemption in Form-16, then do not panic. You can also claim HRA exemption directly while filing ITR, although it may be necessary to provide the PAN card number of the landlord.
11. Not taking advantage of available tax deductions
Due to lack of awareness, many people forget to avail various legitimate deductions available under the Income Tax Act (like health insurance premium, children’s tuition fees, etc.). Before filing ITR, understand all the valid deductions so that tax can be saved legally.
12. Not paying advance tax or paying it late
If your total estimated tax liability (after deducting TDS) exceeds Rs 10,000, you are required to deposit advance tax on a quarterly basis. Under the Income Tax Act for delay or short payment 1% per month Penal interest has to be paid at the rate of Rs.
13. Not doing e-verification of ITR on time
Submitting the ITR form online is not the end of the process. after filing return within 30 days It is mandatory to do its e-verification. You can do this easily through net banking, bank account number, OTP or Electronic Verification Code (EVC). If you do not do this, your filled ITR will be considered invalid.
14. Not giving information about Schedule AL
If your annual total income More than Rs 1 crore Then it becomes mandatory for you to fill ‘Schedule AL’ in ITR. In this schedule, you have to give complete details of all your movable and immovable assets and the liabilities associated with them in the country and abroad.
15. Hiding information about foreign assets and bank accounts
If you are a Resident and Ordinarily Resident of India and you have a bank account abroad, any assets like shares of foreign companies, mutual funds, or ESOP, then information about the same is available. Schedule FA It is legally mandatory to give in. Even if there is no tax on that foreign asset in India, hiding it can attract heavy penalties under the Black Money Act.