ITR Filing 2025: 5 Mistakes You Cannot Afford To Make While Filing Returns

Filing your Income Tax Return (ITR) is an important financial task that ensures you comply with the tax laws of the country. As the Income Tax Department has already notified the forms for ITR filing for FY 2024-25 (Assessment Year 2025-26), taxpayers are gearing up to complete their obligations. It’s the time to gather proof of investments, details of financial transactions and income from various sources for an error-free ITR filing and claim deductions, if any.

While e-filing has made the process simpler, there are times taxpayers end up making mistakes that could lead to penalties, scrutiny, or delayed refunds. In some cases, you may even receive a notice from the Income Tax Department for any errors in your ITR submission.

Here are five mistakes you cannot afford to make while filing your ITR for AY 2025-26.

1) Choosing The Wrong ITR Form

The I-T Department provides different ITR forms based on factors such as income in a financial year, taxpayer category and other factors. Currently, there are seven forms available: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. The form you need to choose depends on your income sources, the taxable income and your taxpayer category (individuals, HUF, or companies, etc.).

Selecting the wrong ITR form can lead to an incorrect return, requiring a revised filing. For instance, resident individuals with a total income of up to Rs 50 lakh should file ITR-1, while ITR-2 is meant for individuals or Hindu Undivided Families (HUFs) who don’t qualify for ITR-1.  

2) Not Reporting All Income Sources

Many taxpayers think only salary income needs to be reported. But interest earned on savings accounts, fixed deposits, rental income, capital gains, or any freelance income must also be declared. Failing to report these sources can be seen as concealment of income and may attract penalties. Even if TDS has been deducted, you still need to declare such income in your ITR filing.

3) Mismatch Between Form 26AS And TDS Statement

Form 16 is provided by the employer to the salaried taxpayers. It contains the details of the Tax Deducted at Source (TDS) on your salary. It's important to ensure that the TDS amounts mentioned in Form 16 match the figures in Form 26AS, which is a detailed tax credit statement. You can download Form 26AS from the Income Tax portal after logging in.

Any mismatch can lead to rejection of your ITR. In such cases, taxpayers will need to respond to the notice from the Income Tax Department and provide explanations for the mismatch. This can also cause delays in processing returns, which may further delay tax refunds. As such, addressing any inconsistencies early on will help you file your ITR smoothly and avoid unnecessary complications.

4) Ignoring Verification of ITR

Many believe that submitting the ITR online completes the process. But filing an ITR isn’t complete until you verify it. You can e-verify using Aadhaar OTP, net banking, or other methods. If you choose to send a physical ITR-V acknowledgment, it must reach the Income Tax Department within 30 days. An unverified return is considered invalid, meaning it’s as good as not filed.

5) Incorrect Bank Account Details

Providing incorrect bank account numbers or IFSC codes can delay or block your tax refund. Make sure you update your latest bank account details in the ITR form. Also, ensure the account is pre-validated and linked with your PAN to receive any refund.

Overall, filing your ITR accurately and on time is important to stay compliant and avoid unnecessary stress. Take your time to check all details, forms and documents. If you’re unsure, consult a tax professional to help you navigate the process.