Submitting ITR is an important financial process, but even seasoned taxpayers commit unnecessary blunders that cause delay, penalty, or even tax notices. With July 31, 2025, staring closely as the due date for Assessment Year 2025-26, here are the most common blunders filers commit while submitting ITR—and how to avoid them. These are the top 10 blunders filers commit while submitting ITR—and how to avoid them. For comprehensive support and expert guidance, consider consulting a reliable ca company in Mumbai.
Top 10 Errors during Filing your Income Tax Return
Following are the top ten errors which people are likely to commit while filing ITR and the simple tips to prevent them:
1. Selecting the Incorrect ITR Form
The most common and expensive error is selecting the incorrect ITR form. Every ITR form is published for certain taxpayer categories and the type of revenue. For instance, ITR-1 is for resident individuals with up to ₹50 lakh income from salary, one house property, and other sources, but not from foreign or capital gains. Filing in the wrong form will make your return red-flagged as defective, for which you will have to furnish a revised return and maybe even face the wrath of the tax department.
How to avoid:
Carefully go through the eligibility conditions of each form. In case of doubt, consult a tax expert or a trusted best ca firm in Mumbai.
2. Failure to meet the Filing Deadline
Failure to file your ITR within time (July 31, 2025, for most of them) will incur a late fee of ₹5,000, disallow specific deductions, and rule out losses being carried forward. It may also delay your tax refund.
How to avoid:
Start preparing your papers well in advance and note down the deadline as a reminder.
3. Not Releasing All Sources of Income
Most of the taxpayers are remiss in releasing interest on savings accounts, FDs, rent received, dividends, or capital gains. Failure to report any source of income, even if TDS is released, would be an act of concealment and would invite notices and penalties.
How to avoid:
Release all the sources of income, cross-match by reconciling bank statements, Form 16, and investment evidence.
4. Not Paying Attention to Form 26AS and AIS
Form 26AS and the Annual Information Statement (AIS) consolidate TDS, TCS, and high-value transactions reported to the tax authorities. Inconsistencies or mismatches between your ITR and these forms can lead to a mismatch, delay, or tax notices.
How to avoid:
Download and match both Form 26AS and AIS before submitting. Verify all the TDS and income entries are the same. This is particularly crucial for accurate tds return filing in Mumbai.
5. Personal or Bank details incorrect
Mentioning incorrect PAN, Aadhaar number, or bank account numbers may result in delay or rejection of refunds.
How to avoid:
Verify all the personal and bank details prior to filing your return.
6. Quoting the Wrong Assessment Year
Quoting an incorrect assessment year may result in double taxation or a penalty. In respect of FY 2024-25, the AY will be 2025-26.
How to avoid:
Keep the assessment year in hand at all times before filing.
7. Non-E-Verification of ITR
e-verification cannot be done without filing. In case of a non-verified return, it will be considered not filed, and you might need to go through the process again or incur a late fee.
How to avoid:
E-verify the return within 30 days through Aadhaar OTP, net banking, or by sending it to the CPC through ITR-V.
8. Selecting the Wrong Tax Regime
Taxpayers can choose between the new and old tax regimes. Selecting the wrong one without comparing benefits can cost them extra tax.
How to avoid:
Both regimes can be compared using online tools or tax consultants’ advice prior to filing.
9. Not Responding to Tax Notices
Failure to respond to the notices released by the Income Tax Department can result in litigation or a penalty.
How to avoid:
Check your income tax and e-mail portal periodically. Respond to any mail in time.
10. Hiring Unqualified Consultants
Hiring unqualified or inexperienced agents could cause mistakes, ineligible returns, or completion of wrong forms, and your chances of notices and penalties.
How to avoid:
Always hire certified professionals or well-known companies for tax filing, especially a reputable ca company in Mumbai.
Conclusion
Accurate and punctual ITR filing is the key to compliance, refunds, and worry-free peace of mind. By refraining from these most common errors, you can make your tax season a trouble-free and hassle-free experience. To get expert help and error-free filing, relying on a professional like Epsilon Accounts Anusthan Fintech LLP is advisable. They are recognized as a best ca firm in Mumbai and their trained professionals will guide you through the proceduralities of ITR filing, help you make the most of your ascertainable benefits, and update you about constantly changing tax legislation, making your tax experience hassle-free, including specialized assistance with tds return filing in Mumbai.
FAQs
1. What would be the outcome if I file my return on the wrong ITR form?
Filing your return on the wrong ITR form can result in rejection of the return, processing delay, or requesting a new return to be supplied.
2. Why do I need to verify Form 26AS and AIS prior to filing my ITR?
Failing to match your ITR with Form 26AS and AIS will result in mismatches, generate tax notices, and create delays in processing or refund.
3. Do I actually have to e-verify my ITR, and what happens if I miss it?
Yes, you have to; avoiding it makes your ITR not filed, and you’re inviting penalties and lose an opportunity to file too.
