Top ITR Mistakes to Avoid This Filing Season

Why mistakes happen

Even though the income tax return filing process has moved almost entirely online, mistakes are common because taxpayers still rely heavily on assumptions or incomplete data. Many people assume that Form 16 is the only document they need, but that’s rarely true. Others skip reporting certain incomes because they believe they are too small to matter.

Common mistakes in 2025

1. Mismatch between Form 16, Form 26AS, and AIS

   1. Example: You see ₹1.5 lakh TDS in Form 16 but AIS shows ₹1.6 lakh because of fixed deposit interest. The mismatch will trigger a notice.

2. Wrong bank account details

   1. Refunds get delayed or credited to a dormant account.

3. Claiming ineligible deductions

   1. Like showing medical insurance premiums without proof or claiming tuition fees beyond allowed children.

4. Not reporting previous employer income

   1. Job switchers often upload only their last employer’s Form 16, under-reporting tax.

5. Skipping small incomes

   1. Bank interest, freelance projects, or dividend income are easy to forget but are tracked by AIS.
       

Compared to earlier years when the tax department didn’t have advanced cross-checking, 2025’s e-filing system uses data analytics. The portal automatically compares what you file with what financial institutions reported. Errors that may have slipped through before now almost always get flagged.

Mistakes That Lead to ITR Revisions and How to Sidestep Them

A mistake in your original return doesn’t always mean penalties, but it does mean extra work. The most common triggers for revising income tax returns are:

• Forgetting interest income from fixed deposits, recurring deposits, or savings accounts.
• Capital gains misreporting — especially short-term vs. long-term classification errors.
• Leaving out exempt income (like agricultural income or tax-free bonds). These are not taxable but must be reported.
• Incorrect TDS claims, often due to mismatches between employer filing and employee entry.
• Overstating deductions, sometimes unintentionally, such as entering the housing loan principal twice (once under 80C and again under another section).

How to sidestep

1. Reconcile income with Form 26AS and AIS before submission.
2. Double-check deduction proofs.
3. Verify TDS with employer(s) and banks.
4. Keep capital gain statements from brokers handy.

Case in point

A taxpayer sold mutual funds in June but forgot to include capital gains in his July filing. The AIS flagged it, and he had to revise his return. With GSTN-like data matching now in play, forgetting isn’t an option—it will surface.

How to Revise Your Income Tax Return Without Hassle?

1. Log in to the e-filing portal.
2. Select “e-File → Income Tax Return → File Revised Return.”
3. Enter the Acknowledgement Number and date of the original return.
4. Update the incorrect sections (income, deductions, bank account, etc.).
5. Verify again using Aadhaar OTP, net banking, or DSC.

You can revise multiple times before the deadline. Unlike earlier years, where revisions were limited, the law now allows corrections as long as they’re within the filing window. 

Best practice: Don’t wait until the last week. The closer you are to the deadline, the slower the system becomes, and the higher the risk of missing out.

Original vs. Belated vs. Revised ITR Returns: Which One Applies to You?

This is one of the most misunderstood areas of income tax return ITR filing.

• Original return: Filed by the due date (July 31, 2025 for FY 24–25).
• Belated return: Filed after July 31 but before December 31, 2025. Comes with late fees under Section 234F.
• Revised return: Filed to correct mistakes in the original or belated return.

Example comparisons:

• Case A: You filed on July 20 but forgot FD interest. On August 15, you can submit a revised return.
• Case B: You miss July 31 and file on August 10. That’s a belated return. If later you notice an error, you can still revise it.
• Case C: You don’t file until January 2026. You’ve missed both original and belated deadlines, and may need to apply for condonation of delay.

Understanding this distinction saves you from panicking. Many taxpayers confuse belated and revised returns, assuming they’re penalized for revising when in fact the system encourages corrections.

Checklist Before Filing Your ITR: Documents That Can Save You From Revision

The quickest way to avoid ITR filing mistakes is to prepare. Think of this as your tax toolkit:

• Income proof: Form 16, salary slips, pension statements.
• TDS/TCS proof: Form 26AS, AIS, bank TDS certificates.
• Investment proof: LIC, ELSS, PPF, NPS receipts.
• Loan documents: Housing loan interest certificate, education loan statement.
• Capital gains: Contract notes from brokers, mutual fund statements.
• Other incomes: Rent agreements, freelance invoices.
• Exempt incomes: Agricultural income, PF withdrawals, gratuity.
• Bank details: Active account with IFSC code.

Having this ready reduces filing errors by half. In earlier years, many people discovered missing documents after submission, forcing a revision. With AIS and pre-filled forms in 2025, missing data gets caught faster, but it’s still your responsibility to verify.

What You Must Know Before Filing Your Return

Some rules often get ignored:

• Advance tax & interest: If you owed more than ₹10,000 in tax but didn’t pay advance tax, interest applies. Filing on time doesn’t cancel that liability.
• Verification: Filing isn’t complete until you verify through Aadhaar OTP, net banking, or physical ITR-V. Many forget this final step.
• Refund timelines: Early filers see refunds in weeks; late filers wait months.
• Pre-filled ≠ error-free: Cross-check all pre-filled data with your own documents.

The biggest mistake is rushing. Treat filing like closing your financial year—a few extra checks now save you from notices and revisions later.

Don’t Forget These: Exempt Income and Past Employer Earnings in Your ITR

Many assume exempt income doesn’t matter, so they skip it. But disclosure is mandatory. Agricultural income, tax-free bonds, and certain allowances must be reported under “Exempt Income.” Failing to do so doesn’t always create liability, but it does raise questions if AIS shows it.

Another common oversight is income from a past employer. If you switched jobs, both employers reported TDS. Leaving one out leads to under-reporting, which the portal flags. In 2025, with employer filings fully digitized, mismatches surface instantly. Including everything—taxable or exempt—ensures your income tax return online is complete.