ITR Due Date Extended: Ten Key Mistakes to Avoid While Filing ITR in 2025

As the Income Tax Department has extended the last date for filing the Income Tax Return (ITR) till September 15, 2025. This has provided a big relief to taxpayers. But still, taxpayers are advised to finish filing their ITR before the due date to avoid last-minute rushes and mistakes in the ITR and also to have time to correct mistakes if any wrong detail is filled.

If someone’s total income is more than Rs. 2.5 lakh under the old tax regime and more than Rs. 3 lakh under the new tax regime, then he/she is required to file an ITR. Even if you are not liable to pay taxes, you are still necessary to file ITR if you exceed these income limits. If you still do not file ITR or file late, it can lead to a number of litigations, penalties and many other consequences.

1. Choosing an Incorrect ITR Form: Choosing an incorrect form to file the Income Tax Return (ITR) grabs the attention of the income tax department, and you may receive a tax notice for the same. For instance, if your total income is less than Rs. 50 lakh and you don’t possess any capital gain, then only you are required to file ITR Form 1; otherwise not.

2. Not Verifying ITR: Filing an income tax return is as important as verifying it. If you have filed your return but have not verified it, then it is the same as not filing your ITR before the due date. Hence, it is compulsory to e-verify ITR after successfully e-filing it.

3. Entering the Wrong Assessment Year: It is necessary to enter the correct assessment year while filing ITR. For instance, if you are filing your income tax return for this year, you must choose the assessment year 2025-26. Selecting the wrong assessment attracts the attention of the tax department.

4. Filling Wrong Details: Entering wrong details in the income tax return, such as an incorrect name, address, email ID, phone number, PAN, or date of birth, may lead to several litigations.

5. Incorrect PAN and Bank Details: Always make sure your personal information, such as PAN number, home address, phone number, bank account details, etc., is already filled in correctly and up to date.

6. E-filing of Returns: E-filing of returns refers to the process of filing tax returns online via electronic means, using online software approved by the relevant tax authority of the respective country. Always try submitting your tax return before the set deadline. If a return is filed after the due date, taxpayers can suffer the following consequences:

• You will need to pay a late filing fee.
• You will not be able to carry forward any losses to the next year.
• You may lose some tax deductions and exemptions.

7. Ignoring Tax Notices: If the income tax department sends any type of notice to you, you must check it timely and reply to it, complying with all legal rules. Ignoring these notices can lead to several legal actions against you and penalties.

8. Not Thinking While Selecting a Tax Regime: Since the financial year 2023-24, the new tax regime has been made the default regime under 115BAC. Therefore, if the taxpayer has not voluntarily chosen the new tax regime, their employer will still deduct TDS from their salary under the new tax regime. While filing ITR, taxpayers’ forms are automatically defaulted to the new tax regime; they are required to shift to the old tax regime. They have the option to choose between the old and new tax regimes for the assessment year 2024-25.

9. Failure to Claim Exemptions: Numerous taxpayers earn capital gains and also reinvest some part of it to get some relief from the tax. But sometimes they forget to claim exemptions under sections such as 54, 54EC, or 54F.

10. AIS and Form 26AS: Visit the Income Tax website and download your AIS and Form 26AS. If you notice any discrepancies in them, you should reconcile them with your employer/tax deductor/bank. Ask them to correct the mistake so that your tax records are accurate.