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Filing an Income Tax Return form ahead of the September 15 deadline? These are 10 critical errors you must avoid ensuring smoothest possible processing and refund.
Errors to avoid while filing your ITR in 2025.
While the government of India extended the deadline to file Income Tax Returns (ITR) for 2025 from July 31 to September 15, the beginning of August has seen many salaried employees in India rushing to CAs and financial advisors to verify and process their tax return papers on the Income Tax forum. Before you file your ITR for the 2024-25 financial year, you must be mindful of certain errors that could cause you avoidable headaches later on.
In India, filing an ITR has been made compulsory by the government of India if your total income exceeds Rs 2.5 lakh under the old tax regime or Rs 3 lakh under the new one. Even if no tax is due for a given financial year, working professionals are advised to file an ITR for futuristic benefits. Here are 10 mistakes you should be mindful of before filing your ITR this time.
Wrong ITR Form:
Filing your ITR with the wrong or unsuitable form can lead to delays or legal notices by the tax authorities. As an example, for individuals with a salary bracket lower than Rs 50 lakh and with no capital gains, ITR-1 must be used.
Failing to Verify ITR:
If your ITR is not e-verified at the point of filing, it won’t be treated as submitted. The GOI makes verification of the ITR mandatory.
Wrong Assessment Year:
Choosing the wrong assessment year will lead to fines. For income earned in 2024–25, select AY 2025–26.
Incorrect Personal Details:
Never provide wrong personal details. Mistakes with the PAN, date of birth, bank account, or contact details can cause processing and refunding hurdles.
Other Incomes Missed:
You must declare all income sources, including interest on savings or fixed deposits, as well as rental income or capital gains, if any, to avoid fines for such omissions.
Bad Format:
Incorrect formats can lead to errors in your ITR filing. Fill in details exactly as required in the form.
Tax Regime Error:
Don’t choose the wrong tax regime, as it could mean missing out on benefits or deductions as per the Income Tax Act. Choose the tax regime best suited to your income bracket.
Advanced Tax Not Paid:
It is important to always pay your taxes on time. Late or short payments attract 1 per cent of the interest per month on the unpaid sum.
Exemption Claims Error:
One must claim exemptions under sections like 54, 54EC, or 54F if they reinvest their capital gains.
Don’t Ignore Notices:
In case you have received a notice from the tax department, do not ignore it and respond immediately to avoid penalties or any legal action.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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