- Choosing the wrong ITR form can lead to defective return notices or audits
- Missing the ITR filing deadline may result in fines and loss of loss carryforward benefits
- Quoting the wrong assessment year delays processing and may attract penalties
Filing an Income Tax Return (ITR) is an annual responsibility for millions of taxpayers, but even minor errors can attract unwanted scrutiny from the Income Tax Department. Common mistakes can trigger an income tax notice, which wastes your time and effort
What are the most common filing errors that you can avoid to ensure their returns are accurate and compliant with tax regulations? Here is the answer:
1. Choosing the wrong ITR form
Choosing the wrong ITR form is one of the quickest ways to receive a "defective return" notice or an audit. Each form corresponds to specific financial profiles. If your income sources do not align with the form's designated criteria, tax authorities will flag the filing.
2. Missing the ITR filing deadline
Missing the due date can result in a late fee of up to Rs 5,000. More importantly, it forces you to file a "belated return", which strips your ability to carry forward business and capital losses and charges 1% monthly interest on unpaid taxes.
ALSO READ: ITR 2026: What Is Form 39? Here's How To Save Tax On Salary Arrears After Resigning
3. Quoting the wrong assessment year
Taxpayers often confuse the Financial Year, the year in which you earned the income, with the Assessment Year, the year in which that income is evaluated and taxed. This simple oversight causes severe delays in processing and can attract penalties.
4. Not reporting all sources of income
When taxpayers only declare their primary salary, they overlook secondary earnings. This creates instant discrepancies with the Income Tax Department's data.
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