Top 10 Mistakes to Avoid When Filing Your Taxes in India

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Introduction

Filing your Income Tax Return (ITR) is a yearly responsibility for every taxpayer. Whether you are a salaried employee, a freelancer, or a small business owner in India, making even minor mistakes during tax filing can result in penalties, income tax notices, or unnecessary stress.

In this article, we’ll cover the Top 10 mistakes to avoid while filing your taxes in India in 2025 and how to avoid them smartly.

1. Choosing the Wrong ITR Form

One of the most common mistakes is selecting the incorrect ITR form. Every ITR form is designed for a specific income category.

✅ Solution:

• Use ITR-1 if you have salary income and up to one house property.
• If you have capital gains, multiple house properties, or business income, use ITR-2, ITR-3, or ITR-4 accordingly.
• Refer to the official Income Tax Department website for clarity.

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2. Not Reporting All Sources of Income

Many taxpayers forget to report interest income from savings/FDs, rental income, or even gains from crypto or shares. This can be seen as tax evasion.

✅ Solution:
Use your Form 26AS and Annual Information Statement (AIS) to cross-check all income sources before filing.

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3. Incorrect Bank Account Details

If your bank account number or IFSC code is entered incorrectly, your tax refund might fail or get delayed.

✅ Solution:
Always double-check your primary account details before submission.

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4. PAN Not Linked With Aadhaar

If your PAN and Aadhaar are not linked, your ITR will not be processed and can be marked as invalid.

✅ Solution:
Link PAN-Aadhaar via the official portal before filing.

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5. Not Verifying the ITR After Submission

Just submitting the ITR isn’t enough. You must e-verify it within 30 days, or it won’t be considered valid.

✅ Solution:
Use Aadhaar OTP, Net Banking, or EVC (Electronic Verification Code) to complete the verification process quickly.

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6. Wrong Tax Deduction Claims (Under Section 80C, 80D, etc.)

Many people overclaim deductions under 80C, 80D, or HRA without valid proofs, leading to audits or notices.

✅ Solution:
Keep all your investment proofs handy such as LIC, PPF, ELSS, medical bills, and rent receipts. Only claim what’s supported.

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7. Double Reporting of TDS/TCS

Some people enter TDS information twice – from salary slips and Form 26AS – causing mismatches.

✅ Solution:
Rely only on Form 26AS or AIS while filing your return.

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8. Missing the Deadline

Filing ITR after the deadline (usually July 31st) can lead to a late fee up to ₹5,000, plus interest on tax due.

✅ Solution:
Don’t wait until the last week of July. File as early as possible after Form 16 and Form 26AS are available.

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9. Not Reviewing the ITR Before Submission

Submitting the form without checking all details can lead to errors in computation, wrong address, or missed income.

✅ Solution:
Always review your ITR at least twice. Many online tax platforms have “preview” or “summary” features.

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10. Not Taking Professional Help When Needed

If your income includes capital gains, multiple sources, freelancing, foreign assets, or business income, professional help is crucial.

✅ Solution:
Hire a Certified Chartered Accountant (CA) or use verified online filing platforms that offer expert support.

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📌 Additional Pro Tips for Smooth Tax Filing in India

• Match details from Form 26AS and AIS.
• Save ITR-V copy after submission.
• Keep your tax documents for at least 6 years.
• Track ITR processing and refund status from the portal.

✅ Conclusion

Tax filing is not just a legal duty – it’s a reflection of your financial discipline. Avoiding the above 10 mistakes can save you from hefty penalties, unnecessary notices, and a lot of stress in 2025. The Indian tax system has gone largely digital, but accuracy is still your responsibility.

So don’t wait for the last day – file smart, file safe, and file early!