Top 5 Mistakes to Avoid While Filing Income Tax Return in India (2025)

Introduction: Why Filing Your ITR Correctly Matters in 2025

The Income Tax Return (ITR) season for FY 2024–25 (AY 2025–26) has begun, and lakhs of taxpayers in India will file their returns online. Every year the changes in income tax filling lead to difficulty and some ease at the same time. The process become easy to file income tax return but the changes on portal and in rules make people difficult to understand the things for file own self.This year many changes done on portal to stop the fake deductions and create transparency in filling.While the process has become simpler, many people still make errors that lead to:

·         Delayed refunds

·         Tax department notices

·         Penalties or even scrutiny assessment

To save you from these troubles, here are the top mistakes you must avoid while filing your ITR in 2025, especially if you want smooth processing and timely refunds.

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 Top 5 Mistakes to Avoid While Filing Your ITR

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 1. Selecting the Wrong ITR Form

Many taxpayers pick the wrong ITR form — especially freelancers, traders, and those with capital gains. Filing the wrong form can result in a defective return (under Sec 139(9)) or even rejection.

Example:
A salaried person investing in stocks must file ITR-2 or ITR-3 — not ITR-1.

Solution:
 Carefully read the ITR Form descriptions.
 If in doubt, use the “Help me Decide” tool on the income tax portal.

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 2. Ignoring AIS and Form 26AS Mismatches

Many filers ignore the Annual Information Statement (AIS) and Form 26AS, which contain details of TDS, interest income, and other transactions reported to the tax department.

Common error: Missing FD interest income, or salary bonuses not declared.

Consequence: Mismatch notices under Section 143(1)(a) or tax demand later.

Solution:
 Check AIS and Form 26AS before filling.
 Report all income, even if exempt.

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 3. Missing Out on Interest Income & Other Sources

People often skip adding interest earned from:

·         Savings accounts

·         Fixed deposits (FDs)

·         Recurring deposits

·         Income from stocks, mutual funds, or rent

Even 500 bank interest must be disclosed to avoid future notice.

Solution:
 Add all interest & “Income from Other Sources” in your ITR.

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 4. Filing False Deductions or Wrong Claims to Get Higher Refund

Some filers intentionally claim fake deductions under sections like 80C, 80D, or HRA without actual proof — just to generate a bigger refund.

Example:
Claiming 1.5 lakh deduction under 80C without investing in LIC/PPF/ELSS etc.

Consequence:

·         Scrutiny by the department

·         Refund held back

·         Penalty u/s 270A (200% of tax evaded)

·         Prosecution for false statements

Solution:
 Only claim deductions with proper receipts or proof.
 Be truthful — the department cross-checks via AIS/TDS data.

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 5. Not E-verifying the ITR after Submission

Submitting ITR without e-verification is incomplete — your return won’t be processed.

E-verify within 30 days of filing through:

·         Aadhaar OTP

·         Net banking

·         Bank account/Demat

·         Or by sending ITR-V by post

Consequence:
 Return marked invalid, no refund processed.

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 How to Avoid These Mistakes

1.      Read ITR form instructions carefully.

2.      Download AIS & 26AS before filing.

3.      Use official calculators (IT portal).

4.      Double-check interest, rent, capital gains income.

5.      File early to avoid last-minute errors.

6.      Keep proper records of all deductions.

7.      Always e-verify after filing.

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 Important ITR Filing Dates for FY 2024–25 (AY 2025–26)

Event	Date
ITR Filing (Non-Audit)	31st July 2025 (Extended to 15 Sep 2025)
Audit Cases Due Date	31st Oct 2025
Revised Return Filing	31st Dec 2025

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 Related Blog Posts You Should Read:

 How to File ITR Online in India(2025)
 Top 10 Tax Saving Tips in India
 Old vs New Tax Regime – Which is Better?

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 Conclusion

Filing your Income Tax Return carefully in 2025 ensures:

·         Faster refunds

·         Zero chances of notices

·         Peace of mind

 Stay honest.
 Avoid last-minute rush.
 Cross-verify every figure with AIS, 26AS, and your own records.

The SVibes tip: When in doubt — consult a tax expert or CA to save yourself from costly mistakes. You can contact us for return filling and any consultation on our social media handles or in comment.

FAQs – Common Doubts on ITR Filing

 

What if I file the wrong ITR form?

Your return may be marked defective under Sec 139(9). You’ll need to revise and file the correct form.

Is AIS & 26AS checking compulsory?

Yes, because the IT department matches your declared income with AIS/26AS. Mismatches may lead to notices or demands.

Can I file ITR without Form 16?

Yes, but you must use your salary slips and AIS details to fill income and TDS correctly.

What happens if I falsely claim deductions?

You may face heavy penalties (up to 200% of tax evaded) or prosecution. Avoid false claims.