Tax filing in 2025 was far more complicated for Indians than previous years, largely because personal income streams are no longer limited to salary alone. A growing number of taxpayers now earn through freelancing, digital content creation, SIP withdrawals, RSU vesting, intraday trades and influencer payouts. This shift has made filing returns prone to errors, especially for individuals who fail to reconcile their reported income with official tax statements. Financial experts say that AIS and TIS mismatches topped the list of problems last year, followed closely by mistakes in capital gains reporting. With taxpayers now entering the 2026 filing season, awareness and clarity are becoming essential.
Capital gains continued to trouble taxpayers in 2025. Investors struggled to correctly classify equity and mutual fund transactions, with missing details such as holding period, bonus issues or buyback data leading to misreporting. Even minor differences between long-term and short-term classification impacted final tax calculation, resulting in higher tax liability or notices being issued. Another major issue was inconsistency between individual records and AIS/TIS/26AS entries. If TDS details were not updated or bank-reported interest did not match personal disclosures, errors reflected during filing. Experts emphasise that matching statements regularly can prevent last-minute panic.
The structure of income for many Indians has become multi-layered. Aside from salaries, people today deal with freelance projects, affiliate earnings, gig income, dividends, digital commissions and micro payments. With multiple tax treatments applying simultaneously, reliance on rough calculations is no longer advisable. Experts recommend maintaining updated financial records throughout the year, tracking capital gains monthly and reviewing AIS/TIS entries before filing opens. Sarvjeet Virk from Finvasia explained that a data-driven approach is the future of tax planning. Accurate documentation, timely verification and understanding tax rules for each income stream will ensure smoother returns in 2026. In short, mismatched records, misclassified capital gains and confusion around new-age earnings formed the biggest tax mistakes of 2025. Proactive planning can help taxpayers avoid repeat errors next year.
