ITR Filing Mistakes 2025: The government has extended the 2025 income tax return filing deadline from the usual July 31 to September 15. To avoid last-minute mistakes and to get time to fix any incorrect details, file your ITR before the deadline.

Under the old tax system, you had to file your ITR if your total income crossed ₹2.5 lakh. Under the new tax regime, you must file it if your income is ₹3 lakh or more. Even if you don’t owe taxes, you must file your ITR when your income crosses these limits. Filing late can lead to errors, penalties, and other problems, so avoid delays.

Top 10 ITR Filing Mistakes 2025:

1. Failure to validate your ITR: Failure to file your income tax return on time is equivalent to failing to verify your ITR. After successfully e-filing your income tax return, you need to e-verify your ITR.

2. Wrong ITR Form: A defect notice and other disruptions may result from choosing the incorrect ITR form. For instance, you need only file ITR Form 1 if you have no capital gains and your salary is less than ₹50 lakh.

3. E-Verification On Time: Returns should be verified within 30 days. If you fail to do so, this will invalidate your returns. Filing fresh returns after invalidation might result in missing the due date.

4. Claiming fake HRA or Deductions: If you are claiming fake HRA or deductions, this is going to lead to misreporting of income, and there is going to be around a 200 % penalty on tax on misreported income. Interest is also levied on the unpaid tax.

5. Entering Wrong Details: Problems may arise if incorrect information is provided, such as name, address, mail ID, phone number, PAN, and date of birth. For the claimed penalty to be credited to your account on schedule, you must also accurately provide your bank information.

Also Read: ITR Filing 2025: New Deadline and Key Tax Rules Explained

6. Proper Income Details: In addition to your major source of income, you should include interest from savings accounts, fixed deposits, short-term capital gains, and rental income from real estate in your ITR file. This error is frequently made by taxpayers and can result in fines and tax letters.

7. Not Disclosing Foreign Assets & Liabilities: The Income Tax Act of 1961 requires residents and ordinarily resident Indians to report their overseas income, assets, accounts, and shares in the Schedule FA of the ITR, whether the income is taxable in India or not. You must fill out the Schedule Foreign Assets (FA) in the ITR and provide details about foreign assets, such as foreign shares, foreign mutual funds, foreign business interests, and employee stock options (ESOPs) from foreign companies.

8. Ignoring Advance Tax: It’s usually a good idea to pay your taxes on time to avoid interest and penalties. The four installments of advance taxes are due on June 15th, September 15th, December 15th, and March 15th. Interest at 1% is charged on the outstanding balance until the advance tax is paid in full or in part.

9. Wrong Assessment Year: You must choose AY 2025–2026 if you are filing your income tax return for this year. Bringing up the wrong AY results in needless penalties.

10. Choosing Right Regime: It is advised to choose the right regime as per your income and your spending, as some individuals have an advantage with the old tax regime, and some people have benefits of the new tax regime. So it is advised to check before getting into the process.  

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