Filing your Income Tax Return (ITR) is an essential financial responsibility for every taxpayer. While most individuals understand its importance, many end up making errors that can lead to delays, penalties, or even scrutiny from the Income Tax Department. The good news is that these mistakes are avoidable with the right guidance.
At AccFin, we believe that awareness is the first step toward error-free tax compliance. In this blog, we’ll highlight the top 10 common ITR filing mistakes and share practical tips to help you avoid them.
1. Choosing the Wrong ITR Form
Mistake: Many taxpayers select the wrong ITR form (such as ITR-1, ITR-2, ITR-3, etc.). This can result in rejection of the return.
Solution: Carefully check your income sources before selecting the form. For example, salaried individuals with no capital gains can use ITR-1, while business owners need ITR-3.
2. Missing Reporting of All Income Sources
Mistake: People often forget to disclose interest income, freelance earnings, or rental income.
Solution: Gather all income details, including Form 16, Form 26AS, AIS (Annual Information Statement), and bank interest certificates, before filing.
3. Incorrect Personal Information
Mistake: Errors in PAN, Aadhaar, bank account details, or contact information can delay refunds.
Solution: Double-check your personal details before submission. Always link Aadhaar with PAN to avoid issues.
4. Not Reconciling with Form 26AS and AIS
Mistake: Taxpayers sometimes fail to match their TDS (Tax Deducted at Source) with Form 26AS and AIS, leading to discrepancies.
Solution: Always cross-verify income and TDS credits with these documents before filing.
5. Claiming Wrong Deductions or Exemptions
Mistake: Incorrectly claiming deductions under sections like 80C, 80D, or HRA can trigger notices.
Solution: Only claim deductions for which you have valid proof (investment receipts, medical insurance, rent agreements, etc.).
6. Ignoring Advance Tax or Self-Assessment Tax
Mistake: Many individuals with business income or high interest earnings skip advance tax payments, resulting in penalties.
Solution: Estimate your tax liability in advance and pay quarterly installments where applicable.
7. Filing After the Due Date
Mistake: Late filing not only attracts penalties but also limits your ability to carry forward certain losses.
Solution: Mark your calendar for the due date (usually July 31 for individuals) and file well in advance.
8. Forgetting to Verify ITR
Mistake: Filing is incomplete until the return is verified (either electronically or physically). Unverified returns are treated as invalid.
Solution: E-verify through Aadhaar OTP, net banking, or Demat account within 30 days of filing.
9. Overlooking Capital Gains and Losses
Mistake: Many taxpayers forget to report capital gains from shares, mutual funds, or property sales, or fail to adjust losses.
Solution: Track all your investments, and declare both short-term and long-term capital gains accurately.
10. Not Seeking Professional Help When Needed
Mistake: Complex cases (multiple income sources, foreign income, business profits) often lead to mistakes when handled alone.
Solution: If your return is complicated, consult professionals like AccFin to ensure compliance and maximize benefits.
Final Thoughts
Filing ITR doesn’t have to be stressful. By avoiding these common mistakes, you can save time, reduce the risk of penalties, and secure faster refunds. If you feel unsure about the process, partnering with experts ensures peace of mind and accuracy.
At AccFin, we specialize in helping individuals and businesses file their returns seamlessly, so you can stay compliant and financially confident.
👉 Need assistance with your ITR filing? Contact AccFin today!
