ITR Filing 2025: Avoid These 5 Costly Mistakes While Filing Your Income Tax Return

Filing your Income Tax Return (ITR) correctly is more than a yearly obligation — it’s a step toward financial responsibility, helping you avoid penalties, tax notices, and delays in refunds. As the assessment year 2025–26 begins, it’s time to gather your key financial documents: salary slips, Form 16, bank interest certificates, and investment proofs.

But even seasoned taxpayers can make simple mistakes that may cost them money or peace of mind. To ensure a smooth and error-free filing experience, here are five common ITR mistakes you must avoid this year:

1. Missing the Filing Deadline

The deadline to file your ITR for most salaried and individual taxpayers is July 31, 2025. Filing after this date can lead to:

A late fee of up to ₹5,000 under Section 234F
Loss of the ability to carry forward certain losses
Delays in processing and receiving your refund

Tip: Mark the deadline in your calendar and aim to file early to avoid last-minute issues.

2. Choosing the Wrong ITR Form

Using the correct ITR form is crucial. Filing under the wrong category may lead to rejection or processing delays.

Use ITR-1 (Sahaj) if you’re a salaried individual earning up to ₹50 lakh without foreign assets or capital gains.
Choose ITR-2 or ITR-3 if you have multiple properties, capital gains, or foreign income.

Tip: Double-check your income structure and consult a professional if unsure.

3. Not Reporting All Sources of Income

Many taxpayers unintentionally leave out smaller income sources. Every rupee matters. Ensure you report:

Interest from savings and fixed deposits
Dividend income
Capital gains (stocks, mutual funds, property)
Rental income
Interest from lesser-used or dormant bank accounts

Failing to declare income — even unknowingly — can invite scrutiny or penalties from the tax department.

4. Ignoring Form 26AS & AIS Before Filing

Before submitting your return, review your Form 26AS and Annual Information Statement (AIS). These documents reflect:

Tax Deducted at Source (TDS)
Advance tax payments
High-value transactions

Any mismatch between your records and what’s reported in these forms can lead to complications.

Tip: Address discrepancies before filing to avoid delays or income tax notices.

5. Not Verifying Your ITR

Submitting your return isn’t the final step. You must verify your ITR within 30 days — otherwise, it will be treated as invalid.

Quick ways to verify:

Aadhaar OTP
Net banking
Electronic Verification Code (EVC)

Tip: Opt for online verification for quicker confirmation.

Final Words

Accurate and timely ITR filing doesn’t just save you from penalties — it helps you maintain a clean financial profile and ensures faster refunds. By avoiding these five common errors, you make your filing process smoother and stress-free.

If you’re unsure about any step, consider consulting a tax expert or using the official e-filing portal. Filing your taxes right the first time is always worth it.