As the deadline for filing Income Tax Returns (ITR) for the financial year 2024–25 approaches, many taxpayers are preparing their documents and details. While the last date to file is still far off, filing early and accurately can save you from the stress of last-minute errors and, even worse, a notice from the Income Tax Department.
The tax department has already flagged 1.65 lakh cases under Section 143(2) for scrutiny. Many of these notices arise not from major fraud but from small mistakes and missing details that taxpayers often ignore.
Let’s understand the key mistakes you must avoid while filing your ITR in 2025 to ensure smooth processing and avoid any legal trouble.
1. Ignoring Mismatch in TDS Details
One of the most common reasons for receiving a notice is when the TDS (Tax Deducted at Source) mentioned in your ITR does not match the figures available in Form 26AS or the Annual Information Statement (AIS).
This mismatch often happens with:
- Salary earners who forget to update the latest Form 16 details
- Freelancers who receive multiple payments but don’t track TDS
- Bank interest not properly reported
👉 Solution: Always cross-check your ITR form with Form 26AS and AIS on the income tax portal before submitting.
2. Forgetting to Report All Income
Many taxpayers unintentionally or carelessly skip certain income sources, which leads to income mismatch.
Examples include:
- Rental income from another house
- Savings account interest
- Fixed deposit interest
- Capital gains from selling stocks or property
- Cryptocurrency earnings
- Foreign income or foreign asset holdings
Even if these incomes are small, hiding or forgetting to report them can invite scrutiny.
👉 Solution: Use AIS and bank statements to ensure all income is included.
3. Claiming Deductions Without Proof
Sections like 80C, 80D, 80G, and HRA offer tax deductions. But some taxpayers claim them without actual investment or payment. If you make such false claims and can’t provide proof when asked, the department may issue a notice and impose penalties.
Common fake or unsubstantiated claims:
- HRA without rent receipts
- Life insurance or PPF not paid
- Medical insurance without actual premium
👉 Solution: Keep all proof of deductions handy. Only claim deductions you are eligible for.
4. Filing ITR in the Wrong Form
Filing your return using the wrong ITR form is a major mistake. Each ITR form is designed for different types of taxpayers.
Example:
- ITR-1 is only for individuals with income from salary, pension, and one house property.
- If you have capital gains, business income, or income from more than one property, ITR-1 is not valid.
Using the wrong form can make your return invalid, and you may get a notice to revise and refile.
👉 Solution: Understand your income sources clearly and choose the correct ITR form before filing.
5. Rounding Off or Guessing Income Figures
Many people estimate their income or expenses and enter rounded-off figures without verifying bank records or salary slips. This leads to wrong reporting and data mismatch.
👉 Solution: Always use exact figures. Refer to your Form 16, bank statements, salary slips, and Form 26AS to fill in accurate details.
6. Filing Returns at the Last Minute
Rushing to file ITR just before the deadline increases the chances of missing documents or making careless errors. This can result in a faulty return that might later attract a tax notice.
👉 Solution: Start preparing your documents early and file well before the due date.
7. High-Value Transactions Without Explanation
If you have made high-value transactions like:
- Buying or selling property
- Large credit card payments
- Heavy mutual fund or stock investments
- High cash deposits in bank
…and you don’t disclose the source of income or fail to mention them properly in your return, the Income Tax Department can initiate an inquiry.
👉 Solution: Always explain high-value transactions and report the income used for them. Be transparent in your ITR.
Final Tip: Filing ITR Is Not the End
Filing your return is just the beginning. You must ensure that it is complete, correct, and verified. The Income Tax Department uses AI-based systems to scan every return, match it with third-party data, and identify discrepancies.
Even small gaps or mistakes can lead to notices under Sections 139(9), 143(1), or even 143(2) for deeper scrutiny.
