Filing an income tax return is an important and critical task for every taxpayer. Even a minor error in the process can lead to unnecessary penalties and, sometimes, legal complications. 

Although the last date to file an ITR is July 31, 2025, it’s better to file as soon as possible to avoid delays and errors. Sometimes mistakes may happen and they may not be rectified later, causing you heavy penalties.

Here are the common mistakes in ITR you should avoid that could result in penalties:

  • Incorrect or incomplete personal information: It’s very important to provide correct personal information, such as Aadhaar card details and PAN card number. Failure to do so can lead to heavy penalties. Other than this, adding a correct IFSC code is also crucial and non-negotiable.

  • Wrong income figures: You may also be charged a penalty if you report wrong income figures or miss out on any other source of income, such as freelance earnings, interest income or income from foreign sources.

  • Form 16 and Form 16A: You need to have a clear understanding of both forms when filing an ITR. Form 16 is provided to a salaried individual that shows the tax that has been deducted from your salary. It has two parts, A and B. While if you have income other than salary, like interest or rent, and TDS is deducted on that income, then Form 16A is provided.

  • Claiming inappropriate deductions: It is a must to provide proper documents, receipts, proofs of investments, medical insurance and donations when filing an ITR. Otherwise, claiming false deductions can lead to penalties.

  • Not filing on time: If you miss the deadline, the tax department may impose a late filing fee and you could also face additional charges like interest on any unpaid taxes.

  • Selecting the wrong ITR form: The return will be considered defective or invalid if they choose the incorrect ITR form. According to sections 234A and 234F of the I-T Act, they will, therefore, be liable for the same interest and penalties as those who do not file their return by the deadline.

  • Verify Form 26AS: Before submitting an ITR, you need to verify Form 26AS. The form includes your earnings, taxes paid to the income tax department in advance, taxes deducted at the source and other information. Any discrepancy between Form 16 and 26AS will put you in hot water because it will prevent you from completing the reimbursement process in the future. This may result in higher tax payments.

It is crucial to file ITR accurately and on time in order to avoid penalties and legal issues. You can minimise the risk of receiving heavy penalties by adding accurate personal details, claiming authentic deductions and verifying forms like Form 16 and Form 26AS before filing an ITR.

. Read more on Personal Finance by NDTV Profit.Although the last date to file an ITR is July 31, 2025, it’s better to file as soon as possible to avoid delays and errors.  Read MorePersonal Finance 

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