ITR Filing 2025 10 Costly Mistakes to Avoid

 

As the ITR deadline is extended to September 15, experts warn that simple errors like using the wrong form or failing to verify can lead to penalties.

With the deadline for filing Income Tax Returns (ITR) for 2025 extended to September 15, Indian taxpayers are urged to avoid common errors that can lead to penalties and legal issues. Experts highlight that mistakes ranging from procedural slip-ups to incomplete income disclosure are frequent, emphasizing the need for careful and timely filing to ensure compliance.

The Income Tax Department has a structured process for filing returns, and deviations can trigger automated notices. Common mistakes often start with procedural errors, such as selecting the wrong ITR form for your income type or entering the incorrect Assessment Year (AY 2025-26). Furthermore, taxpayers often fail to report all sources of income beyond their salary, including interest from savings accounts, fixed deposits, and rental income.

Another critical error is failing to complete the process. Many taxpayers file their ITR but forget the final, mandatory step of e-verification. Without verification, a return is considered invalid.

On the importance of verification: "Filing but not verifying your ITR is the same as not submitting your Income Tax Return on time."

On undeclared income: Tax experts warn that failing to disclose all income sources, such as "savings account interest, fixed deposit interest, rental income," is a common mistake that can "lead to penalties and tax

notices."

The consequences of these mistakes are significant. Selecting the wrong tax regime can lead to higher tax outgo, while failing to pay advance tax results in a 1% monthly interest penalty. Ignoring notices from the Income Tax Department can escalate to legal action. Ultimately, these preventable errors create financial strain and unnecessary hassle for the taxpayer.

The government has extended the ITR filing deadline for the financial year 2024-25 from the usual July 31 to September 15, 2025. Taxpayers must file if their income exceeds ₹2.5 lakh under the old regime or ₹3 lakh under the new regime. This dual-regime system requires filers to be extra cautious in selecting the one that is most beneficial for them.

Tax professionals advise filing returns well before the deadline to provide a buffer for any corrections. The final, crucial step is to e-verify the return promptly after submission. By double-checking personal details, declaring all income, and claiming eligible deductions, taxpayers can ensure a smooth and penalty-free filing experience for 2025.

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