ITR deadline approaches: Five mistakes to avoid while filing income tax returns 

As the deadline to file income tax returns for the Assessment Year 2025-26 approaches, it's time for individual taxpayers to collect essential documents from the latest financial year including interest certificates, dividend statements, salary slips, and business income records.

The last date for filing the ITR for the fiscal year 2024-25 (assessment year 2025-26) is Thursday, July 31, 2025. Non-compliance within the stipulated time may lead to penalties. Income below Rs 5 lakh incurs a Rs 1,000 penalty, while incomes over Rs 5 lakh may result in penalties up to Rs 5,000.

It's important to consider several points while filing your tax returns. 

One of the primary considerations is to avoid common mistakes and errors in your income tax documents. This check is crucial to steer clear of financial penalties, unwanted notices, and delays that could trigger unnecessary scrutiny from the tax authorities.

Here's a look at five frequent mistakes that taxpayers often encounter while filing their income tax returns. 

1. Missing the Filing Deadline

It's very important to remember that the deadline for submitting your Income Tax Return (ITR) for most individual taxpayers is July 31, 2025. Missing this deadline can lead to penalties ranging from Rs 1,000 to Rs 10,000, depending on how long the delay lasts.

Additionally, filing your tax return late may cause you to miss out on valuable deductions and carry-forward benefits. Keeping this date in mind is essential to ensure a smooth filing process.

2. Choosing the Wrong ITR Form

Selecting the correct ITR form tailored to your specific situation is vital. For instance, salaried individuals earning up to Rs 50 lakh should use ITR-1, while those with capital gains or multiple properties should opt for ITR-2.

Be aware that using the wrong form could lead to processing delays or even rejection of your return. This could result in unnecessary complications and potential legal issues if not addressed properly.

3. Failing to Report All Sources of Income 

Make it a priority to document every income source you have. This includes interest from savings accounts, income from previous dormant accounts (if they’re active), fixed deposits, rental income, and capital gains from stocks or mutual funds. It’s crucial to report all of these accurately in your tax returns. Omitting any income can lead to significant penalties and increased scrutiny from tax authorities. So, ensure that you provide a full account of your earnings to uphold transparency.

4. Overlooking Form 26AS and AIS

The Annual Information Statement (AIS) and Form 26AS are essential documents that detail the taxes deducted throughout the financial year as well as related financial transactions. Verifying these against your own records is key to maintaining clarity and accuracy when filing your taxes. This step can also prevent delays in processing your tax returns, as long as the information is checked, filled out correctly, and submitted on time.

5. Failing to verify Your Income Tax Return (ITR)

After you complete the filing of your ITR, it's crucial to verify it, as any unverified returns will be deemed invalid. You can easily verify your returns online using Aadhaar OTP or net banking. If you encounter any uncertainties, don’t hesitate to reach out to an income tax officer or a certified tax filing consultant for guidance.

Paying close attention to details, including checking your forms, associated documents, bank statements, and dividend statements during the ITR filing process, will help you avoid potential problems down the line. By steering clear of these common pitfalls, individual taxpayers can ensure a smoother and more efficient tax filing experience.