ITR Filing for AY 2025–26: 5 Mistakes That Could Cost You Time and Money

Filing your ITR is more than a legal formality—it’s a step toward sound financial management.

As the new assessment year begins, individuals across India are preparing to file their Income Tax Returns (ITR) for AY 2025–26. To ensure a smooth process, taxpayers are gathering necessary documents such as salary slips, bank interest certificates, dividend statements, rental income details, and business earnings for the financial year just ended.

Yet even with the right documents in hand, several common filing mistakes can lead to penalties, processing delays, or tax notices. Avoiding these pitfalls is key to ensuring your return is accurate and filed on time.

Here are five mistakes to steer clear of while filing your ITR this year:

1. Missing the Filing Deadline

The last date to file ITR for most individuals is July 31, 2025. Filing after this date can result in late fees ranging from ₹1,000 to ₹10,000, depending on the delay. In addition to the penalty, you may also lose eligibility for deductions or carry-forward benefits.

Mark your calendar and file early to avoid last-minute pressure and fines.

2. Choosing the Wrong ITR Form

Using the correct ITR form is critical to ensure your return is processed without issues.

ITR-1: Ideal for salaried individuals earning up to ₹50 lakh.

ITR-2 or ITR-3: Needed if you have capital gains, multiple properties, or foreign income.

Filing the wrong form can lead to delays, rejections, or a demand for a revised return.

Tip: Carefully check which form applies to your specific income type before submitting.

3. Not Reporting All Income Sources

Failing to disclose all income—whether by oversight or intent—can lead to scrutiny or penalties. You must include income from:

Savings and fixed deposit interest

Rental earnings

Capital gains from stocks, mutual funds

Freelance or side jobs

Tip: Cross-check your income from all bank accounts, investment platforms, and digital payment apps.

4. Ignoring Form 26AS and AIS

The Annual Information Statement (AIS) and Form 26AS offer a detailed summary of taxes deducted and financial transactions reported to the tax department. Not reviewing these documents can result in mismatches, causing delays or inquiries.

Tip: Download these documents from the income tax portal and verify that all transactions match your records.

5. Forgetting to Verify Your Return

After filing, your ITR must be verified—otherwise, it is treated as invalid.

You can e-verify through:

l Aadhaar OTP

l Net banking

l Electronic Verification Code (EVC)

Tip: Complete verification within 30 days of filing to ensure your return is officially accepted.

6. House Rent Allowance (HRA) Denied by Employer: 

To receive HRA, employees must provide rent receipts to HR. Many taxpayers are unaware that they also need their landlord’s PAN to qualify for this benefit. HRA exemptions can be calculated and claimed when filing income tax returns.