Top 10 ITR Filing Mistakes to Avoid in 2025 (And How to Fix Them)
Introduction
Filing your Income Tax Return (ITR) might seem like a routine task, but one small mistake can lead to unwanted notices, delayed refunds, or even penalties. In 2025, with increased digital scrutiny and prefilled forms, accuracy matters more than ever.
In this guide, we’ll discuss the Top 10 ITR Filing Mistakes people often make and how you can avoid them. Whether you're a salaried employee, freelancer, or business owner—this blog is a must-read before you file your return.
1. Choosing the Wrong ITR Form
Mistake: Filing ITR-1 when you have capital gains, or ITR-4 when you're not eligible under the presumptive scheme.
Impact: Your return may be considered defective under Section 139(9).
Solution: Use the correct form based on your income type. If unsure, refer to the Income Tax Portal’s ITR Form Guide.
2. Not Reporting All Sources of Income
Mistake: Forgetting to report interest from Fixed Deposits, savings accounts, or freelance income.
Impact: Can lead to under-reporting and penalties.
Solution: Check your Form 26AS and AIS (Annual Information Statement) for all income sources before filing.
3. Missing the ITR Filing Deadline
Mistake: Filing after the due date (July 31, 2025).
Impact: You may have to pay a late fee of ₹1,000–₹5,000 and lose the chance to carry forward losses.
Solution: Set a calendar reminder or use apps to track tax deadlines.
4. Not Verifying the ITR After Filing
Mistake: Filing ITR but forgetting to e-verify it.
Impact: Return is considered invalid unless verified within 30 days.
Solution: Immediately verify via Aadhaar OTP, net banking, or by sending a physical ITR-V form to CPC Bangalore.
5. Not Linking PAN with Aadhaar
Mistake: PAN not linked to Aadhaar at the time of filing.
Impact: Your ITR can’t be processed and PAN becomes inoperative.
Solution: Link PAN and Aadhaar here before filing.
6. Entering Incorrect Bank Details
Mistake: Wrong account number, IFSC code, or unvalidated account.
Impact: Refund may get delayed or fail to reach your account.
Solution: Validate your primary bank account on the income tax portal before filing.
7. Not Disclosing Foreign Assets or Income
Mistake: Not reporting foreign income or assets (especially NRIs and residents with overseas accounts).
Impact: Attracts penalties under the Black Money Act.
Solution: Declare all foreign income/assets under the appropriate ITR form (usually ITR-2 or ITR-3).
8. Failing to Claim Eligible Deductions
Mistake: Not claiming deductions under 80C, 80D, or 80E due to oversight.
Impact: You pay more tax than you should.
Solution: Keep a checklist of all investments and expenses eligible for deductions before filling the return.
9. Overlooking TDS and Advance Tax
Mistake: Ignoring TDS already deducted by employer or clients, or not paying advance tax (for self-employed).
Impact: You may pay tax again or get notices under Section 234B/C.
Solution: Cross-check Form 26AS and pay any pending advance tax before March 31st.
10. Submitting Incorrect Personal Information
Mistake: Typos in name, PAN, address, email, or contact number.
Impact: Leads to communication issues, delayed refund, or processing errors.
Solution: Double-check your personal info before final submission. Update PAN/Aadhaar details if needed.
Bonus Tip: Always Save Acknowledgment & Form Copy
After filing, save the Acknowledgment (ITR-V) and complete form PDF for future reference. It may be needed for loans, visa applications, or tax inquiries.
Conclusion
Avoiding these 10 common ITR filing mistakes can save you from unnecessary stress, notices, and penalties. The key to a smooth ITR filing experience in 2025 lies in:
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Choosing the right form
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Reporting all incomes
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Verifying the return on time
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Staying up to date with portal information
Remember: Accuracy today means peace of mind tomorrow. Happy Filing!
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