New Delhi: As tax season rolls around, many people rush to file their Income Tax Returns (ITR) — but in the hurry, costly mistakes often slip through. With ITR forms for FY 2024-25 now available, it’s the perfect time to get organised and file carefully. Whether it’s missing documents, reporting incorrect income, or overlooking deductions. Even a small error can lead to big consequences like delayed refunds, penalties, or scrutiny from the Income Tax Department. 

Here are five common mistakes you should avoid at all costs while filing your ITR for Assessment Year 2025–26.

1) Selecting the Wrong ITR Form

One of the most common mistakes while filing your return is choosing the wrong ITR form. The Income Tax Department offers different forms depending on your income type and taxpayer category – such as individual, HUF or company. There are currently seven forms: ITR-1 to ITR-7. For example, if you’re a resident individual earning up to Rs 50 lakh from salary, one house property, and other sources, you should use ITR-1. If you don’t meet these conditions, you may need to file ITR-2 or another relevant form. Using the wrong form can make your return invalid, forcing you to file a revised one.

2) Failing to File on Time

The last date to file your ITR for most individual taxpayers is July 31, 2025 — and missing it can be costly. A delayed filing may attract penalties ranging from Rs 1,000 to Rs 10,000, depending on how late you are. That’s not all — you could also lose out on certain tax deductions and the ability to carry forward losses. So, it’s important to mark the date and avoid last-minute stress. Filing on time not only saves money but also keeps you on the right side of the tax rules.

3) Not Reporting All Sources of Income

It’s important to report every source of income while filing your ITR — not just your salary. This includes interest from savings accounts, old or dormant accounts (if they’re still active), fixed deposits, rental income, and capital gains from stocks or mutual funds. Forgetting or skipping any of these can lead to penalties or even scrutiny by the tax department. To avoid trouble later, make sure you give a complete picture of your earnings.

4) Forgetting to Verify Your ITR

After filing your ITR, don’t forget to verify it — this step is mandatory. Any unverified return will be considered invalid. You can easily verify your return online using Aadhaar OTP or net banking. If you’re unsure about the process.

5) Skipping Form 26AS and AIS Checks

Form 26AS and the Annual Information Statement (AIS) are crucial for error-free tax filing. These documents list all the taxes deducted during the year along with key financial transactions. Comparing them with your own records helps ensure that everything matches up and nothing is missed. Ignoring them could lead to mismatches, delays in processing your return, or even unwanted scrutiny. Always double-check these before submitting your ITR.