Filing income tax is one of those tasks many people try to finish quickly, often at the last minute. In the rush, mistakes happen, and these errors can lead to delays, notices from the Income Tax Department, or even penalties. The good news is that most of these mistakes are easy to avoid with a little attention and preparation. Here are some of the most common income tax filing mistakes in India and simple ways to prevent them.
Incorrect Personal Details
Many taxpayers overlook basic personal information such as their name, PAN number, Aadhaar details, or address. Even a small spelling error or a mismatch between records can cause verification issues. Double-check all personal details before submitting your return. Ensure your Aadhaar and PAN information match government records.
Selecting the Wrong ITR Form
India has different Income Tax Return (ITR) forms depending on income type, employment status, and financial activity. Using the wrong form can make your return invalid. Check the latest rules on the Income Tax Department website. Choose the form that matches your income sources, such as salary, business, rental income, capital gains, or foreign income.
Not Reporting All Income Sources
Many people report only their salary income and forget about interest from savings accounts, fixed deposits, freelance income, side gigs, rental income, or capital gains. Not reporting everything may lead to a mismatch in AIS or TIS and result in a notice. Go through your Annual Information Statement (AIS) carefully. Include every income source, even if the tax is already deducted at source.
Ignoring Form 26AS and AIS
Some taxpayers rely only on salary slips or bank statements. They forget to check Form 26AS or AIS, which reflect TDS, tax payments, high-value transactions, and more. Ignoring these forms increases the risk of inconsistencies. Always cross-check your tax details with Form 26AS and AIS before filing.
Mistakes in Claiming Deductions
Wrong deductions under Sections 80C, 80D, 80G, or HRA claims are common. Sometimes people claim deductions they are not eligible for, or they forget to claim deductions they deserve. Keep all documents such as LIC receipts, tuition fee bills, medical insurance premiums, rent receipts, and donation certificates. Review deduction rules carefully before claiming.
Not Reporting Exempt Income
Some incomes are exempt from tax such as PPF interest, gifts from relatives, or agricultural income. Even though they are exempt, they still need to be disclosed. Add exempt income in the correct schedule. This builds transparency and prevents future queries from the tax department.
Bank Account Errors
Many taxpayers forget to update bank account details or mention the wrong account for refunds. Incorrect IFSC codes and account numbers lead to delays. Update your new bank details on the e-filing portal and verify them before submission.
Skipping Verification After Filing
Submitting your return is not the final step. You must verify it within 30 days. If you forget, your return is treated as not filed. Verify using Aadhaar OTP, net banking, or by sending ITR-V via post. Online verification is the fastest.
Filing at the Last Minute
Rushed filing increases the chance of mistakes. Server slowdowns during peak times also add stress. Start early. Collect all documents in advance and file them before deadlines to avoid unnecessary pressure.
Not Keeping Supporting Documents
Taxpayers often discard receipts or forget to keep proof of deductions and investments. If the tax department asks for clarification, you need these documents. Maintain a file with investment proofs, medical bills, rent receipts, salary slips, and bank statements for at least six years.
Forgetting to Report Previous Employer Income
People who switch jobs during the financial year often forget to include income from their previous employer. This creates a mismatch because the Income Tax Department already has these details through TDS filings. Collect Form 16 from all employers for that financial year and combine the salary details before filing your return.
Filing income tax does not have to be stressful. Most errors happen due to hurry, lack of clarity, or not checking information carefully. With proper documents, early preparation, and attention to detail, you can file your returns smoothly and avoid penalties or delays. A little care today can save you a lot of trouble tomorrow.
