1. Mismatch with Form 26AS and AIS
One of the most common reasons for ITR mismatches is a difference between the income you report and what is reflected in your Form 26AS or Annual Information Statement (AIS).
Solution: Always download and cross-check Form 26AS and AIS from the income tax portal before filing.
2. Ignoring Bank Interest Income
Interest from savings accounts, fixed deposits, and recurring deposits is taxable. Many taxpayers overlook this.
Solution: Collect your bank interest certificates or use AIS data to report accurate interest income.
3. Choosing the Wrong Tax Regime
With both old and new tax regimes available, selecting the wrong one could cost you more tax.
Solution: Use online tax calculators or consult a tax expert to determine which regime suits you best.
4. Not Reporting All Income Sources
From freelance gigs and rental income to capital gains and foreign income—failing to report any income can trigger notices.
Solution: Disclose all income sources, even if TDS has already been deducted.
5. Claiming Incorrect Deductions
Many taxpayers wrongly claim deductions under Section 80C, 80D, or 80G without having valid proof.
Solution: Keep all supporting documents ready and claim only eligible deductions.
6. Failing to Verify the ITR
Filing alone isn’t enough. If you don't verify your return within 30 days, it’s treated as invalid.
Solution: E-verify via Aadhaar OTP, net banking, or by sending a signed ITR-V to CPC Bangalore.
7. Using Incorrect ITR Form
Using the wrong form—like ITR-1 when you have capital gains—can lead to rejection.
Solution: Understand the applicability of ITR forms or consult your tax advisor.
8. Missing Carry Forward of Losses
If you don’t file your return on time, you lose the chance to carry forward capital losses or business losses.
Solution: Always file your return before the due date, especially if you have losses to carry forward.
Conclusion
Avoiding these common errors can make your ITR filing process smoother and stress-free. A little extra care today can save you from hassles tomorrow. If you're unsure or your case involves multiple income heads, it's best to take expert help—TaxComp Solutions is here to assist you!
