Filing your Income Tax Return (ITR) can be straightforward if done correctly. However, many taxpayers make avoidable mistakes that can lead to penalties, delayed refunds, or even notices from the IT department.
Here’s a complete guide on common tax filing mistakes and how to avoid them in FY 2025-26.
Filing Under the Wrong Tax Regime 
Many salaried individuals choose the new tax regime without comparing with the old regime.
Tip: Use an online tax calculator to see which regime gives maximum tax savings.
Not Reporting All Income 
Salary, freelance income, rental income, and interest income must be included.
Tip: Cross-check Form 26AS and bank statements before filing.
Ignoring Eligible Deductions 
Deductions like 80C, 80D, 80CCD(1B), HRA, home loan interest are often missed.
Tip: Keep all receipts and investment proofs ready.
Filing the Wrong ITR Form 
Using ITR-1 instead of ITR-2 (or vice versa) can create errors.
Tip: Choose the correct form based on your income sources.
Missing TDS or Advance Tax Payments 
Many forget to reconcile TDS deducted by employers or advance tax paid.
Tip: Verify TDS in Form 26AS and add missing amounts in ITR.
Not Verifying ITR
Filing without verification is incomplete.
Tip: Verify via Aadhaar OTP, Net Banking, or DSC within 120 days.
Delayed Filing 
Late filing can attract a penalty of ₹1,000 – ₹5,000 depending on income.
Tip: File well before the due date:
Individuals (Non-Audit): 31 July 2026
Audit cases: 31 October 2026
Ignoring Capital Gains & Investments 
Selling stocks, mutual funds, or property generates taxable capital gains.
Tip: Report gains accurately and utilize loss offset rules.
Incorrect Bank Details 
Wrong bank account or IFSC can delay tax refunds.
Tip: Double-check account details before submitting ITR.
Not Keeping Proofs Safe 
Receipts, Form 16, Form 26AS, and investment proofs are essential in case of notice.
Tip: Maintain a digital folder and backup important documents.
Final Thoughts
Avoiding these common mistakes ensures a smooth tax filing process, faster refunds, and no penalties. Proper planning, documentation, and early filing are the keys to hassle-free tax compliance.
Pro Tip: Even if your taxes are simple, cross-check deductions, TDS, and bank details before filing.
