5 Common Mistakes People Make While Filing Income Tax Returns

Filing your Income Tax Return (ITR) is not just a legal obligation but also an important financial responsibility. A correctly filed ITR helps you avoid penalties, ensures timely refunds, and maintains a clean financial record. However, many individuals and businesses make errors that can lead to unnecessary hassles.

Here are the five most common mistakes people make while filing their ITR and how you can avoid them:

1. Incorrect Personal Information

One of the most frequent mistakes is providing incorrect details such as PAN, Aadhaar, bank account numbers, or IFSC codes. Even a small error can delay refunds or lead to rejection of your ITR.
✅ Tip: Always double-check personal and bank details before submission.

2. Not Reporting All Sources of Income

Many taxpayers forget to report income from secondary sources — such as interest on savings accounts, fixed deposits, rental income, or freelance work. Not disclosing this can invite scrutiny notices from the Income Tax Department.
✅ Tip: Collect all Form 16s, Form 26AS, and AIS (Annual Information Statement) before filing.

3. Claiming Wrong Deductions

Section 80C, 80D, and other deductions are often miscalculated. People sometimes claim ineligible deductions or fail to claim the ones they’re entitled to.
✅ Tip: Maintain a checklist of investments, insurance, and eligible deductions.

4. Missing the Due Date

Filing late leads to penalties, interest on tax dues, and even loss of certain exemptions. Many taxpayers wait until the last minute and end up making mistakes in a rush.
✅ Tip: Start preparing at least a month before the deadline.

5. Mismatch Between Form 26AS / AIS and Filed Return

If your ITR doesn’t match the income reported in Form 26AS or AIS, the return may get flagged. This mismatch often arises from unreported TDS or overlooked bank transactions.
✅ Tip: Always reconcile your details with Form 26AS and AIS before filing.

Conclusion:
Avoiding these mistakes ensures smooth processing of your ITR and helps you stay stress-free. If you find tax filing complicated, consulting a professional firm like Easy Tax Life Pvt. Ltd. can save you time, money, and effort while ensuring compliance.