ITR filing 2025: 5 typical errors to steer clear of while submitting your tax returns

Filing your income tax return (ITR) correctly is crucial to avoid unnecessary complications, penalties, or missed tax benefits. As the new assessment year 2025–26 approaches, it's a great time to start gathering your financial documents and ensuring everything is in order. However, many taxpayers make avoidable mistakes while filing. Here are five common errors you should steer clear of:

1. Missing the ITR Deadline
   The deadline to file your ITR for most individuals is July 31, 2025. Missing this date could result in a late fee of up to Rs 5,000, depending on how delayed the filing is. Additionally, missing the deadline may cause you to lose out on certain tax benefits or the ability to carry forward losses, which could affect your future tax filings.

2. Using the Wrong ITR Form
   Using an incorrect ITR form can cause delays or even rejection of your return. For example, if you are a salaried individual earning under Rs 50 lakh, with no capital gains or foreign income, you should use ITR-1. However, if you have sold shares, own multiple properties, or have other complex income sources, you might need ITR-2 or higher. Always check which form aligns with your specific situation before filing.

3. Not Declaring All Sources of Income
   Make sure to include all sources of income, even the smallest ones. This includes income from savings or fixed deposit interest, rental income, dividends, capital gains from shares, mutual funds, and any other earnings. Be sure to report income from older or infrequently used bank accounts as well. Failing to disclose any income can lead to tax notices and penalties.

4. Not Checking Form 26AS and AIS
   Before submitting your ITR, it’s important to compare your return with Form 26AS and your Annual Information Statement (AIS). These forms provide details of tax deductions made by your employer, bank, or any other entity during the year. If there’s a discrepancy between your ITR and these forms, you need to correct it before submission to avoid mismatches and delays in processing.

5. Skipping ITR Verification
   Filing your ITR isn’t the final step — it must also be verified. If you don’t verify your return, it will be treated as invalid. The easiest way to verify your ITR is online, using Aadhaar OTP or net banking. This step takes only a few minutes, so don’t skip it. If you’re unsure how to verify, seek assistance from a tax expert or guide.

By avoiding these common mistakes, you can ensure a smooth ITR filing experience and avoid unnecessary hassles down the line. Make sure to double-check everything and submit on time to keep your finances in order for the new assessment year!