Published on July 24, 2025
Avoid costly errors and ensure maximum compliance with these ITR filing tips for individuals and small businesses.
Filing your Income Tax Return (ITR) is a critical financial responsibility. But even the most well-intentioned taxpayers often make mistakes that can lead to notices, penalties, or missed refunds. Here are the top 10 mistakes to avoid when filing your ITR in India:
1. Choosing the Wrong ITR Form
Each taxpayer category has a specific ITR form. Selecting the wrong one can lead to defective return notices. For example, salaried individuals should typically use ITR-1, but if they have capital gains or foreign assets, another form may be appropriate.
2. Not Reporting All Income Sources
You must report all income – including interest from savings accounts, fixed deposits, freelance income, rental income, and capital gains. Omitting even minor sources can raise red flags with the Income Tax Department.
3. Ignoring Form 26AS and AIS
Form 26AS and the new Annual Information Statement (AIS) list all tax-related transactions like TDS, TCS, and financial activity. Cross-verifying your entries with these statements helps prevent mismatches and scrutiny.
4. Claiming Ineligible Deductions
Taxpayers often mistakenly claim deductions under sections like 80C, 80D, or 80G without proper documentation or eligibility. Incorrect claims can lead to disallowance and penalties.
5. Filing with Incorrect Personal Details
Wrong PAN, bank account number, address, or email ID can delay refunds or lead to communication failures. Always double-check personal and contact details before submission.
6. Missing the Filing Deadline
Late filing can lead to penalties up to ₹5,000 and loss of interest on refunds. You may also lose the opportunity to carry forward losses. Stay alert to due dates – usually July 31st for individuals.
7. Forgetting to Verify the Return
Filing alone isn’t enough. You must e-verify your return within 30 days using Aadhaar OTP, net banking, or other methods. An unverified return is treated as not filed.
8. Not Disclosing Foreign Assets or Income
If you have foreign bank accounts, stocks, or income abroad, they must be disclosed, even if they’re small or inactive. Non-disclosure may attract prosecution under the Black Money Act.
9. Errors in Declaring Capital Gains
Capital gains from shares, mutual funds, or property need accurate reporting. Mismatched purchase/sale dates, wrong exemption claims, or missing indexation can cause issues.
10. Filing Without Professional Help (When Needed)
While salaried individuals with simple finances can self-file, complex cases involving multiple incomes, business, or tax-saving investments often require professional guidance to avoid costly errors.
Conclusion:
Filing your ITR accurately is not just about compliance — it also ensures peace of mind and maximizes your refund. If you're unsure or want to avoid the hassle, Anushvi Solutions offers professional ITR filing services starting from just ₹999 onward. Let our experts take care of your tax needs while you stay stress-free.
