Filing ITR For AY 2025-26? 10 Common Tax Mistakes To Avoid In 2025

Taxpayers must submit their income tax returns (ITRs) carefully as the Financial Year (FY) 2024-2025 filing season draws near, since they can make common mistakes that might lead to delays, notices from the Income Tax Department, and potentially penalties. Although there is plenty of time to prepare and submit taxes in accordance with the deadline of July 31, 2025, for individuals and non-audit cases, the following considerations are crucial to remember when filing an Individual Tax Return (ITR) in FY25 in order to help taxpayers avoid mistakes. The following 10 common mistakes should be avoided when submitting the ITR for the Assessment year 2025-2026:​

10 Common Mistakes To Avoid While Filing ITR For the Assessment Year 2025-26 As Guided By Gaurav Sharma, CFO, Taxflick.com

1. Provide correct Personal Information.

One must provide the correct personal details such as PAN, Aadhaar number and date of birth. Also, the details of PAN must be mapped with the details of Aadhaar. The difference between the details of both may create an error in filing the ITR. ​

2. Bank account must be validated

Bank account details updated with the Income tax portal, must be validated with the correct mail ID and phone numbers, failing which will create an error in the refund issue.

3. Correct ITR Form must be selected.

If you are not choosing the correct ITR form, your ITR may be defective.

Here are details of the different ITR Forms for different categories based on their incomes.

4. All Income Sources must be disclosed.

All income sources must be disclosed in the respective heads.

Whether it is interest from savings accounts or fixed deposits. Whether it is income from rent or business or any other income from previous employers. All these incomes must be disclosed, failing which may lead to discrepancies and penalties.

5. Reconcile with Form 26AS

Income and tax details in the ITR form must be mapped with Form 26AS. Reconcile the details of taxes deducted, taxes collected, and advance tax payments, failing which may lead to a defective ITR or may receive notices from the department.

6. Claiming Inappropriate Deductions

One must ensure to have proper proof of deductions being claimed in ITR whether it is under section 80C (investments), 80D (medical insurance), and 80G (donations). ​ Claiming fake deductions may lead to discrepancies and penalties.

7. Not Disclosing All Bank Accounts

All active bank accounts, except dormant ones, must be disclosed in your ITR. Failure to do so can raise suspicions and may lead to scrutiny.

8. Choose the correct Assessment Year Selection

One must choose the correct assessment year, like for income earned between 1st April 2024 to 31st March 2025 , the financial year is 2024-25 and correct assessment year is 2025-26. Selecting the wrong assessment year can lead to error in the verification of ITR.

9. Not Verifying the ITR

After filing, one must verify the ITR within 30 days, either electronically or by sending a signed physical copy to the Centralized Processing Centre (CPC) Bengaluru. Failing which, your return will be considered invalid. ​

10. Missing the Filing Deadline

The deadline for filing ITR for the Assessment year 2025-26 is 31st July 2025. Filing after this date can attract late fees up to Rs 10,000, interest on unpaid taxes. So, file your ITR before the due date.

Tax Filing Deadline And Penalties

Key Tax Deadlines for FY 2024-25 (AY 2025-26)

Tax filing deadlines depend on your incorporation and audit status. Here are the important deadlines you must remember:

Details of deadlines are as follows:

10 Key Mistakes To Avoid While Filing Your ITR This Year

According to Shefali Mundra Tax expert at Clear Tax, the following are the 10 key mistakes to avoid while filing your ITR this financial year.

1. Selecting the Incorrect ITR Form: Choosing the wrong ITR form can lead to processing delays or rejections. It's essential to select the form that corresponds to your income type and category.
2. Claiming Excess Deductions without Proper Proof: It is important to keep all the relevant supporting documents handy while claiming deductions. Claiming an excess deduction without valid proof to save taxes might attract notice from the department.
3. Furnishing Incorrect Personal Information: Errors in personal details like name, PAN, or bank account information can cause processing issues. Verify all personal information before submission.
4. Not Disclosing All Sources of Income: Omitting income from sources such as interest, rental income, or capital gains can lead to penalties. Accurately disclose all income, including exempt income.
5. Failure to Reconcile Income and TDS with Form 26AS: A mismatch between your reported income and the TDS shown in Form 26AS can lead to discrepancies. Cross-verify your TDS details with Form 26AS before filing.
6. Failure to Reconcile Income and Investments with AIS and TIS: Ensure that the income and investment details in your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) are accurate and match your records.
7. Form 16 from Two or More Employers: When having multiple employers, aggregate the income from all sources correctly to avoid underreporting.
8. HRA not given by employer: If you receive a House Rent Allowance (HRA), ensure you meet the conditions and provide the necessary documentation to claim exemptions.
9. Non-Availing of Available Deductions: Failing to claim eligible deductions under sections like 80C, 80D, etc., can result in higher tax liability. Review and claim all applicable deductions.
10. Not Paying Advance Tax: Failure to pay advance tax on time can attract interest and penalties. Pay advance tax in instalments as per the due dates.