35 ITR Filing Mistake to Avoid for FY 2025-26 / AY 2026-27

Filing your Income Tax Return (ITR) accurately is crucial to avoid scrutiny and ensure your refund is processed without delay. Most errors lead to a Defective Return Notice under Section 139(9) or a complete rejection of the return.

Here are 35 critical mistakes to avoid, grouped by category:

1. Incorrect Bank Details: Mismatched account numbers or IFSC codes are the leading cause of refund failures.
2. Not Pre-validating Your Bank Account: Refunds are only credited to pre-validated accounts linked to your PAN on the e-filing portal.
3. Missing Bank Account Declarations: You must disclose all active savings and current accounts held in India during the financial year.
4. Incorrect Personal Info: Errors in name, PAN, Aadhaar, or date of birth can halt processing immediately.
5. Wrong Assessment Year (AY): For FY 2024-25, the correct AY is 2025-26. Using the wrong year is a common but fatal error.
6. Unlinked Aadhaar-PAN: Your PAN must be linked to your Aadhaar for the return to be valid.

1. Ignoring the Annual Information Statement (AIS): The department already knows your high-value transactions; if your ITR doesn’t match the AIS/TIS, a notice is likely.
2. Mismatch with Form 26AS: Ensure the TDS, TCS, and tax payments shown in Form 26AS align perfectly with your filing.
3. Not Reporting Interest Income: Interest from savings accounts and FDs is taxable (though deductions apply under 80TTA/80TTB).
4. Omitting Income from Previous Employer: If you changed jobs, you must include salary from both employers; otherwise, you may face a high tax demand later.
5. Ignoring Capital Gains: Profits from the sale of stocks, mutual funds, or property must be reported using the correct schedule.
6. Not Disclosing Foreign Assets/Income: For residents, failing to report foreign bank accounts, shares (like RSU/ESOPs), or property can lead to severe penalties under the Black Money Act.
7. Skipping Exempt Income: Items like PPF interest or tax-free dividends must still be disclosed in the “Exempt Income” schedule.
8. Failing to Club Income: Income earned by a minor child or spouse (if applicable under clubbing rules) must be reported in your return.
9. Not Reporting Freelance/Side Income: All earnings from “Gigs” or professional services must be declared.
10. Incorrect Schedule AL: If your total income exceeds ₹50 lakh, you must disclose specific assets and liabilities.

1. Claiming Fake or Inflated Deductions: Claiming HRA or 80C without actual proof or eligibility triggers scrutiny.
2. Not Selecting the Right Tax Regime: You must explicitly choose between the Old and New Tax Regime; the New Regime is now the default.
3. Missing Form 10-IEA: If you have business income and want to opt-out of the new regime, you must file this form before the ITR.
4. Duplicate Deductions: Claiming the same deduction twice (e.g., once in salary and once under 80C).
5. Claiming Chapter VI-A Deductions in the New Regime: Most deductions (80C, 80D, etc.) are not available if you opt for the New Tax Regime.

1. Choosing the Wrong ITR Form: Filing ITR-1 instead of ITR-2 (when you have capital gains) makes your return “defective”.
2. Not E-verifying within 30 Days: Filing is incomplete until you e-verify. If missed, your return is treated as “Never Filed”.
3. Missing the Due Date: Filing after July 31st leads to late fees (up to ₹5,000) and loss of the right to carry forward losses.
4. Not Paying Self-Assessment Tax: Your return won’t be processed if there is a “Tax Payable” balance showing at the end.
5. Ignoring Notices: Not responding to “Defective Return” or “Proposed Adjustment” notices within 15 days can lead to ex-parte orders.
6. Failing to File ITR when Mandatory: Even if your income is below the limit, you must file if you spent >₹2 lakh on foreign travel or >₹1 lakh on electricity in a year.
7. Incorrect Calculation of TDS: Ensure you only claim the TDS amount that actually appears in your 26AS.
8. Not Declaring Dividend Income: Dividends are now taxable in the hands of the recipient and must be reported under “Income from Other Sources”.
9. Errors in Carrying Forward Losses: If you don’t file on time, you generally lose the benefit of carrying forward business or capital losses.
10. Incorrect Residential Status: Marking yourself as a “Resident” when you are “Non-Resident” (or vice-versa) changes your tax liability entirely.
11. Mismatch in HRA Details: Claiming HRA without providing the landlord’s PAN (if rent >₹1 lakh) often triggers notices.
12. Not Reporting Arrears: If you received salary arrears, you must file Form 10E to claim relief under Section 89(1).
13. Overlooking “Deemed Rental” Income: If you own more than two house properties, the others are “deemed let out,” and you must report a national rent even if vacant.
14. Final Review Skip: Not cross-checking the summarized “Tax Paid” vs “Tax Payable” before the final “Submit” button.