Filing your income tax return (ITR) can feel overwhelming—especially with frequent changes in tax laws and reporting norms. Even small mistakes can result in notices, penalties, or refund delays. At CA Nikhil Anand & Co., we’ve seen how avoidable errors can cause major inconvenience. This blog highlights the 7 most common income tax mistakes and how you can steer clear of them.

1. Not Reporting All Sources of Income

The Mistake:
Many taxpayers only report salary income and ignore income from interest, rent, freelance work, or capital gains.

How to Avoid:
Use Form 26AS, AIS (Annual Information Statement), and your bank/NPS statements to ensure you include all sources of income.

2. Choosing the Wrong ITR Form

The Mistake:
Filing the incorrect ITR form can lead to rejection of your return.

How to Avoid:
Read the eligibility criteria for each ITR form or consult a CA. For instance, salaried individuals without capital gains typically file ITR-1.

3. Ignoring Form 26AS and AIS Reconciliation

The Mistake:
Mismatch between reported income and TDS shown in Form 26AS or AIS often leads to notices.

How to Avoid:
Always reconcile your ITR with Form 26AS and AIS before filing. If there’s a mismatch, get it corrected in advance.

4. Missing the Deadline

The Mistake:
Late filing attracts a penalty and disqualifies you from carrying forward losses.

How to Avoid:
Mark your calendar—31st July is the due date for most individuals (unless extended). File early to avoid last-minute stress.

5. Incorrect Bank Details

The Mistake:
Wrong IFSC code or account number can delay your tax refund.

How to Avoid:
Double-check bank details and ensure your PAN is linked to the correct bank account for faster processing.

6. Not Claiming Eligible Deductions

The Mistake:
Taxpayers often forget to claim deductions under Sections like 80C (LIC, PPF), 80D (Health Insurance), and 24(b) (Home Loan Interest).

How to Avoid:
Maintain a checklist of investments and expenses that qualify for deductions and verify them with your Form 16 or records.

7. Failing to Verify the ITR

The Mistake:
Submitting the return but not verifying it (via Aadhaar OTP, net banking, or physical form) makes it invalid.

How to Avoid:
Always e-verify your ITR within 30 days of filing. It’s the final and mandatory step in the filing process.

Conclusion

Avoiding these simple mistakes can save you from legal hassles, financial losses, and unnecessary stress. If you’re unsure about any step of the filing process, professional assistance can make all the difference.

📩 Need help filing your ITR or responding to a notice? Contact CA Nikhil Anand today for expert guidance.