ITR Filing 2025: Key Information and Common Mistakes to Avoid
The government has extended the last date to file income tax returns (ITR) for 2025 to September 15, as opposed to the typical July 31. However, it is advisable to file ITR before the due date to avoid making last-minute mistakes during the rush, allowing for corrections if any wrong details have been entered.
Who Needs to File ITR?
You are mandated to file your ITR if your total income exceeds ₹2.5 lakh under the old tax regime. For the new tax regime, the requirement is an income of ₹3 lakh and above. You must file an ITR even if your total income exceeds these amounts, irrespective of tax liability. Delaying ITR filing can lead to various mistakes that you would want to avoid, including penalties.
Here are 10 ITR Filing Mistakes You Should Avoid in 2025:
- Selecting the Wrong ITR Form: Choosing the incorrect ITR form can lead to disruptions and a defect notice. For instance, ITR Form 1 is meant for individuals whose salary is less than ₹50 lakh and who have no capital gains.
- Not Verifying ITR: Filing your ITR without verifying it is akin to not submitting your Income Tax Return on time. Always ensure to e-verify your ITR after successfully e-filing.
- Putting the Wrong Assessment Year: When filing your income tax return for this year, you must select AY 2025-26. Mentioning the incorrect AY can attract unnecessary penalties.
- Entering Wrong Details: Furnishing incorrect details such as name, address, email ID, phone number, PAN, and date of birth can lead to significant hassles. Ensure your bank details are accurate to receive any claimed penalties on time.
- Not Disclosing Income: Avoid declaring only your primary source of income. You must also include savings account interest, fixed deposit interest, rental income from house property, and income from short-term capital gains. Neglecting this can lead to penalties and tax notices.
- Not Following Correct Format: Entering details in the ITR form in the wrong format may result in incorrect filing and errors in returns.
- Selecting the Wrong Tax Regime: Choosing the incorrect tax regime while filing your ITR can lead to missed deductions. Be cautious when selecting the right income tax regime for yourself.
- Failure to Claim Exemption: Taxpayers who earn capital gains but forget to claim relevant exemptions under sections such as 54, 54EC, or 54F may miss out on significant tax benefits.
- Ignoring Notices: Always respond promptly to any notices from the Income Tax Department. Ignoring such notices may lead to legal actions and penalties.
- Not Paying Advance Tax: It’s advisable to pay your taxes within due dates to avoid penalties. Non-payment or short payment of advance tax incurs a 1% interest on the unpaid amount.
By steering clear of these common pitfalls, you can file your ITR smoothly and ensure compliance with income tax regulations.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.