Common Mistakes to Avoid While Filing ITR in 2025

Filing your Income Tax Return (ITR) correctly ensures you avoid penalties, get refunds on time, and stay compliant with tax laws. However, many taxpayers make common mistakes that can lead to delays, notices from the Income Tax Department, or unnecessary tax payments. This guide highlights the top mistakes to avoid and how to file your ITR accurately in 2025.

1. Missing the ITR Filing Deadline

The last date to file your ITR for the financial year 2024-25 is July 31, 2025 (unless extended by the government). Filing after this date can result in:

• Late fees of up to ₹5,000 under Section 234F
• Interest on unpaid tax under Section 234A
• Loss of carry-forward benefits for losses from capital gains or business income

✅ Tip: Set a reminder to file your ITR before the due date.

2. Choosing the Wrong Tax Regime

In 2025, taxpayers can choose between:

• Old Tax Regime (with deductions under Section 80C, 80D, HRA, etc.)
• New Tax Regime (lower tax rates but no deductions)

Many taxpayers pick the wrong regime without comparing tax liability under both options.

✅ Tip: Use an Income Tax Calculator to determine which regime is more beneficial. Compare Old vs. New Tax Regime here

3. Incorrect Income Declaration

Failing to report all sources of income can lead to tax notices. Commonly missed income sources include:

• Interest from Fixed Deposits (FDs)
• Capital gains from stock or mutual fund sales
• Rental income
• Freelance or side income

✅ Tip: Cross-check income details with Form 26AS, AIS, and TIS available on the Income Tax portal.

4. Ignoring TDS Mismatch

Your Tax Deducted at Source (TDS) should match the amount reported in Form 26AS. If there’s a mismatch, your refund may get delayed or your tax return may be flagged for review.

✅ Tip: Always verify your TDS details before filing. If there’s an error, request a correction from the deductor.

5. Not Claiming Eligible Deductions

Many taxpayers miss claiming deductions under sections such as:

• Section 80C – PPF, LIC, ELSS, EPF, Tuition Fees
• Section 80D – Health Insurance Premiums
• Section 80G – Donations to charities

✅ Tip: Keep all tax-saving investment proofs handy before filing.

6. Not Verifying Your ITR After Filing

Your ITR filing is incomplete unless verified. If you fail to verify within 30 days, your return will be considered invalid.

✅ How to Verify:

• Aadhaar OTP
• Net Banking
• Digital Signature Certificate (DSC)
• Sending a signed ITR-V form to CPC Bengaluru

7. Providing Incorrect Bank Account Details

If your bank details are incorrect, you won’t receive your refund on time.

✅ Tip: Ensure your bank account is pre-validated and linked with PAN before filing your return.

8. Filing the Wrong ITR Form

Selecting the incorrect ITR form can lead to rejection. Here’s a quick guide:

• ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh
• ITR-2: Individuals with capital gains, multiple properties
• ITR-3: Professionals and business owners
• ITR-4 (Sugam): Individuals under the presumptive taxation scheme

✅ Tip: Use the ITR Form Selector on the Income Tax portal to choose the right form.

Final Thoughts

Avoiding these mistakes will help you file your ITR smoothly, claim refunds faster, and stay compliant with tax laws. Always double-check your income details, deductions, and TDS before submitting. If in doubt, consult a tax expert.

📢 Have questions? Drop them in the comments below!