Filing accurate and complete Income Tax Returns (ITR) is critical to ensuring compliance with tax laws and avoiding future scrutiny. The following are some common mistakes that taxpayers should avoid while filing ITR for the financial year 2024-25.

Incorrect selection of ITR form

Using the wrong ITR form is a frequent error, particularly among individuals with multiple sources of income, such as salary, freelancing, capital gains, or foreign assets. CA Suresh Surana says, "Filing an incorrect form may render the return defective or invalid under Section 139(9)." Thus, taxpayers should carefully assess their income heads and choose the correct form notified for AY 2025-26.

Mismatch between reported income and form 26AS/AIS/TIS

Discrepancies between the income reported in the return and the figures available in Form 26AS, Annual Information Statement (AIS), or Taxpayer Information Summary (TIS) can lead to unnecessary notices from the department. Accordingly, taxpayers should reconcile all figures and ensure consistency before final submission.

Non-disclosure of interest income or other minor income

"Failure to report interest earned from savings accounts, fixed deposits, bonds, or other sources, even if tax has been deducted at source, can result in underreporting of income. Full disclosure, regardless of materiality, is essential for maintaining the integrity of the return," said Surana.

Omission or incorrect claim of deductions and exemptions

Taxpayers often make errors while claiming deductions under Chapter VI-A (e.g., Sections 80C, 80D, 80G) or exemptions (e.g., HRA, LTCG under Section 54). Surana says, "Claims should be supported by proper documentation and should align with the regime (old or new) chosen by the taxpayer for FY 2024-25."

Not verifying the return after filing

Filing an ITR without completing the verification process (either through e-verification or submission of a signed ITR-V) results in the return being treated as invalid. The verification must be completed within the stipulated time (currently 30 days from filing) to ensure the return is considered validly filed.

Avoiding these common mistakes can significantly reduce the likelihood of receiving notices or facing interest, penalties, or delays in refunds.