Want to Avoid Income Tax Penalty?, Follow These 5 Important Tips While Filing ITR

Key Highlights:

- File your ITR by 15 September 2025 to avoid Rs 10,000 penalty.

- Report all sources of income linked to your PAN.

- e-Verify your return within 120 days or it becomes invalid.

Mumbai: The Income Tax Return (ITR) filing season for Assessment Year 2025–26 has begun. Taxpayers have started collecting their important documents like salary slips, interest certificates, and dividend statements.

However, experts are advising taxpayers to be extra careful this year. Some common mistakes can lead to penalties, delays, or even scrutiny by the Income Tax Department.

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File ITR on Time

One of the most common mistakes is missing the ITR deadline. This year, the last date to file ITR is 15 September 2025.

If you file after this date, you may have to pay a penalty of up to Rs 10,000. Also, late filing can prevent you from carrying forward losses such as capital gains or business income.

Choose the Correct ITR Form

Using the wrong ITR form is another common issue. Different types of taxpayers need to use different forms.

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For example:

- Salaried individuals should use ITR-1

- Those with business income or capital gains should use ITR-2 or ITR-3

Filing with the wrong form can cause your return to be rejected or flagged for review. Experts suggest reading the updated form guidelines released each year.

ITR-2 & ITR-3 Filing Delayed, Taxpayers With Business Or Capital Gains Must Wait

Complete e-Verification

After filing your return, you must e-verify it within 120 days. If not verified, your return may be considered invalid.

You can verify it easily through:

- Aadhaar OTP

- Net banking

- Demat account login

Manual verification by post is also allowed, but it takes more time.

Report All Sources of Income

Many taxpayers forget to report all income sources. You must include earnings like:

- Interest from fixed deposits

- Rental income

- Capital gains

- Side job income

As all financial data is now linked with your PAN, missing any income could trigger a tax notice or penalty.

Match Form 16 and Form 26AS

Before filing, make sure the details in your Form 16 and Form 26AS match. These forms show your income and TDS details.

Cross-check all figures carefully. If you find a mistake later, don’t worry. You can revise your return under Section 154(1) of the Income Tax Act to correct factual or clerical errors.

(Disclaimer: This article is for general informational purposes only and does not constitute financial or legal advice. Readers should consult a certified tax professional or financial advisor before making decisions related to income tax filing or compliance.)