ITR-filing mistakes-2025 avoid errors

New Delhi, Sep.01,2025:Taxpayers must disclose foreign assets—even if penalties are reduced for assets valued under ₹20 lakh—reporting remains compulsory

Don’t Choose the Wrong ITR Form

Filing under an ineligible form like ITR-1 when you have capital gains, foreign assets, or multiple employers can render your return defective. For instance, you must use ITR-2 if long-term capital gains exceed ₹1.25 lakh or you hold overseas accounts.

Always Verify AIS, Form 26AS & TIS

Verify your income and TDS against AIS, Form 26AS, and Taxpayer Information Summary (TIS). Mismatches are a leading cause of notices, delays, or penalties.

Declare Every Income Source—Even Exempt Ones

Include interest income from savings/fixed deposits, rental income, dividends, and exempt income like PPF interest. Even if exempt, failing to declare these can invalidate your return.

Avoid Incorrect HRA or Capital Gains Claims

Incorrect HRA claims—such as missing landlord PAN or wrong rent details—can trigger scrutiny. Also, capital gains tax slabs changed post-July 23, 2024; filing errors here are common among investors.

Be Wary of Fraudulent or Unsupported Deductions

Claiming deductions under Sections 80C, 80D, 80U without proper documentation is risky. AI-driven systems now flag false or exaggerated claims more easily, resulting in notices or refunds blocked.

Disclose Foreign Assets & Profession-Specific Income Codes

Taxpayers must disclose foreign assets—even if penalties are reduced for assets valued under ₹20 lakh—reporting remains compulsory. Influencers, F&O traders, and gig workers now need to use specified profession codes in ITR-3/ITR-4 (e.g., code 16021 for influencers).

E-Verify Your Return on Time

Filing alone isn’t enough. You must verify (via Aadhaar OTP, net banking, EVC, or ITR-V via post) within 30 days—without it, the return is considered unfiled.

For Excel-Based Filers- Use Pre-filled JSON

ITR-2/3 Excel utilities often glitch. Download the pre-filled JSON from the e-filing portal, activate macros, and validate each schedule. Keep backups to avoid data loss.

Fix Stock & Mutual Fund AIS Mismatches Early

Taxpayers with stock or mutual fund investments face AIS mismatches—like zero purchase cost for old holdings, duplicated entries, or inflated gains. Cross-check with demat or broker records and use the portal’s feedback tool to correct errors.

Actionable Fixes at a Glance

The deadline for ITR filing is 15 September 2025, giving you a runway—but not a reason to delay. Avoid the ITR filing mistakes 2025 detailed above, ensure your filing is precise, and ride through this season confidently.