Income-tax returns: Forms, disclosures, details and documentation — Top 10 common mistakes to avoid while filing ITR

Income-tax returns: Filing your returns is now more accessible through either the offline or online process, but taxpayers may still make some mistakes with their ITR. Thus, we take a look at the top 10 common errors — from using inappropriate forms, to non-disclosure of full income, and filling incorrect details — that you should check for before submitting your papers.

For FY26 (AY27), the deadline for individual taxpayers filing ITR is 31 July 2026; while for those using ITR forms 3 and 4, is 31 August 2026.

Which ITR form should I choose?

• ITR-1 form: For salaried individual with one house property, and other sources.
• ITR-2 form: For individual or Hindu Undivided Family (HUF) without business income.
• ITR-3 form: For individual or HUF with income from business or profession.
• ITR-4 form: For taxpayers with presumptive income from business or profession.

ITR filing: What are the top 10 common mistakes to avoid?

• It is important to use the correct ITR form to ensure smooth and timely processing by the Income Tax Department (ITD). In fact, filing your returns with the wrong form may trigger a notice of correction from the department.
• Filing but verifying your ITR is the same as not submitting your Income Tax Return on time. You must e-verify your ITR after successfully e-filing your income tax return via Net banking, Aadhaar Card, or the EVC process on your mobile number and email within 30 days.
• Double check for the details when filling in the assessment year and personal details such as name, address, email, PAN number, phone number, date of birth and the like. Wrong assessment year could trigger double taxation, and incorrect personal details could impact your refund process as it will be flagged as an error. Check also for the correct formats, i.e. date as DD/MM/YYYY.

• Selecting the wrong tax regime while filing your ITR can lead to unnecessary deductions. You must be careful while doing your ITR filing and choose the right income tax regime for yourself.
• Disclose all sources of income from your savings account to your salary, income from rent or property, capital gains, short-term gain and other sources. It does not matter if the income is exempt, you have to mention it and then claim exemption in your ITR. Failure to do so could trigger tax notice and sometimes penalties from the ITD.
• Use your Form 26AS and your Annual Information Statement (AIS) to ensure that details filled in your ITR match both the documents. These have information about advance tax payment, Tax Collected at Source (TCS), Tax Deducted at Source (TDS), etc. Mismatches could trigger tax demand and impact your refund status.

• For salaried taxpayers who have two or more employers during a financial year, it is important to have Form 16 from both / all the concerned parties when filing your returns. Failure to do so may result in misreported income which can trigger action from the ITD.
• Pay advance tax within the due dates to avoid penalties. This is to be done in four installments — 15 June, 15 September, 15 December and 15 March. The penalty for missing a deadline is 1% of the unpaid amount.
• Taxpayers earn capital gains and reinvest some of the gains but forget to claim the exemption under relevant sections such as 54, 54EC, or 54F. Make sure you do not miss out on tax benefits because of hurry or oversight.
• Ensure that you track and respond promptly to any notice that the Income Tax Department might send you. Ignoring such notices can lead to legal action and penalties.

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