Top 10 Mistakes to Avoid While Filing Your ITR (Income Tax Return)

Filing your Income Tax Return (ITR) isn’t just a statutory responsibility—it’s a critical financial task that, if done right, can bring peace of mind and possible tax refunds. But for many individuals, the process can seem intimidating or confusing. One minor mistake can lead to a rejected return, delayed refund, or worse, an Income Tax notice.

Whether you’re a salaried professional, self-employed freelancer, small business owner, or even a pensioner, filing your ITR accurately and on time is essential. In this guide, we will explore the top 10 common mistakes taxpayers make while filing their ITR, and how you can avoid them with ease and confidence.

1. Missing the Due Date – Don’t Let Procrastination Cost You

One of the most frequent mistakes made by taxpayers is missing the ITR filing deadline. Every financial year, the deadline for individuals (non-auditable cases) is typically July 31st. However, people tend to put it off until the last week—and then realize they’re missing essential documents or information.

Why it matters:

Missing the deadline can lead to late filing fees under Section 234F, ranging from ₹1,000 to ₹5,000. Additionally, you may lose out on carrying forward losses and interest on your refund.

How to avoid it:

• Set reminders for July 1st to begin preparation.
• Keep all documents (Form 16, TDS certificates, bank statements, Form 26AS, AIS) ready in advance.
• File your ITR at least two weeks before the deadline.

2. Filing Under the Wrong ITR Form – The First Step Matters

Another common error is selecting the wrong ITR form. Each ITR form corresponds to specific sources of income. For instance, ITR-1 is suitable for salaried individuals with income up to ₹50 lakhs, while ITR-3 or ITR-4 is for business owners and professionals.

Why it matters:

If you file using the wrong form, your return may be treated as defective, and you’ll have to file a revised return within the allowed time.

How to avoid it:

• Understand which form is applicable for your income sources.
• Visit the Income Tax India Portal for form guidance.
• Consult a tax expert or CA if unsure.

3. Not Reporting All Sources of Income – Transparency is Key

Many taxpayers think they only need to report their salary income. But that’s far from the truth. Interest from savings accounts, fixed deposits, dividends, capital gains from stocks, rent from property, or income from side gigs—all must be declared.

Why it matters:

The Income Tax Department matches your return with your Form 26AS and AIS (Annual Information Statement). Discrepancies can result in notices or penalties.

How to avoid it:

• Reconcile your income details with Form 26AS and AIS.
• Declare all income, even if TDS is already deducted.
• Use the pre-filled ITR feature on the income tax portal and cross-verify.

4. Incorrect Personal Information – Small Mistakes, Big Delays

Errors in PAN, Aadhaar, bank account details, or contact information may seem harmless but can delay refunds or result in rejection of your ITR.

Why it matters:

The tax department uses these details for verification and refund processing.

How to avoid it:

• Double-check your name, DOB, PAN, Aadhaar, email, and mobile number before submitting.
• Make sure your bank account is linked to PAN and enabled for ECS refund.

5. Not Linking PAN with Aadhaar – A Mandatory Rule

As per the Income Tax Act, it is mandatory to link PAN with Aadhaar to file your returns. Failure to do so may result in your PAN becoming inoperative, and your return may not get processed.

Why it matters:

An inoperative PAN means your ITR is invalid and any transactions involving your PAN will be rejected.

How to avoid it:

• Link your Aadhaar with PAN at https://www.incometax.gov.in under ‘Quick Links’.
• Ensure the name and date of birth match across both documents.

6. Overlooking Form 26AS and AIS – Don’t Miss What the Department Already Knows

Form 26AS and AIS (Annual Information Statement) are consolidated records of your TDS, tax payments, income details, and high-value transactions. Ignoring them can lead to mismatches between your declared income and what the department already knows.

Why it matters:

Mismatches could lead to a tax notice under Section 143(1) for under-reporting income.

How to avoid it:

• Always check Form 26AS and AIS before filing.
• Reconcile any mismatch in TDS or income.
• Confirm all tax credits are correctly reflected.

7. Claiming Ineligible Deductions – Don’t Overdo It

Sections like 80C, 80D, 24(b) and others offer excellent tax-saving opportunities. But claiming deductions without proof or eligibility can invite trouble.

Why it matters:

You may face a scrutiny notice or disallowance of your deductions.

How to avoid it:

• Only claim deductions you are eligible for.
• Maintain documentation for all deductions claimed—LIC receipts, tuition fees, rent agreements, health insurance premiums, etc.
• Avoid ‘copy-paste’ entries from previous years if your situation has changed.

8. Skipping ITR Verification – The Final, Crucial Step

Many filers submit their return and forget the most crucial step—verification. The ITR is only considered valid once it is verified, either online or by sending a signed copy of ITR-V to CPC, Bengaluru.

Why it matters:

If your ITR is not verified within 30 days, it is treated as not filed.

How to avoid it:

• E-verify instantly using Aadhaar OTP, Net Banking, or Digital Signature.
• If using physical verification, send ITR-V via speed post to CPC, Bengaluru, within 30 days.

9. Not Disclosing Foreign Assets – Be Careful if You’re a Resident

If you’re an Indian resident and hold foreign bank accounts, stocks, or other assets abroad, you’re mandated to disclose them. Many NRIs returning to India often miss this rule during transition.

Why it matters:

Non-disclosure can lead to penalties under the Black Money Act, which are severe and non-negotiable.

How to avoid it:

• If you’re an Indian resident for tax purposes, declare all overseas assets/income.
• Consult a tax advisor if you have foreign assets.

10. Failing to Pay Advance Tax or Self-Assessment Tax

If your total tax liability is more than ₹10,000, you’re expected to pay advance tax in four installments. If you fail to do this, the department levies interest under Sections 234B and 234C.

Why it matters:

Even if you file your ITR on time, unpaid tax dues will attract interest and penalties.

How to avoid it:

• Calculate your estimated annual tax liability early.
• Pay advance tax in June, September, December, and March.
• Pay any balance as Self-Assessment Tax before filing the return.

Bonus Tips to Make Your ITR Filing Smooth

Here are a few bonus points that can help streamline your ITR filing experience:

✔️ Use CA/Tax Filing Platforms:

If you have multiple income sources or are unsure about your eligibility, it’s best to use professional platforms or consult a chartered accountant.

✔️ Keep Records for 6 Years:

Income tax records should be preserved for at least six years for audit or verification purposes.

✔️ File Even If Not Mandated:

If your total income is below the taxable limit but TDS has been deducted, file ITR to claim a refund.

✔️ File Revised Return If Needed:

If you discover an error after filing, don’t panic. You can file a revised return under Section 139(5) before December 31st of the assessment year.

Final Thoughts

Filing your Income Tax Return doesn’t have to be a stressful experience. With the right approach, adequate preparation, and awareness of common mistakes, you can make the process smooth and accurate. The key is to be organized, transparent, and timely.

Avoiding these top 10 mistakes will not only ensure that your return is accepted without hassle but also keep you compliant and stress-free during scrutiny or audits. Whether you’re expecting a refund or filing just for record-keeping, accurate ITR filing builds your financial credibility, helps with loan applications, visa processes, and improves your financial discipline.

If you’re still unsure or want to ensure a flawless filing experience, let the experts at Genuinefilings.com handle it for you. From document collection and form selection to accurate filing and quick verification, we make tax season easy, reliable, and fully compliant. Let us take the guesswork out of taxes—so you can focus on what truly matters.

Visit Genuinefilings.com today and file your ITR with confidence!