Filing your income tax return (ITR) for the first time is a milestone in financial responsibility, but it also comes with its share of confusion and potential pitfalls. From choosing the correct form to verifying the return, a few missteps can delay refunds or even invite scrutiny from the Income Tax Department. With the ITR filing season for Financial Year 2024–25 now open, new taxpayers must stay alert and informed.
Avoid these common ITR filing mistakes
The most frequent error new filers make is choosing the wrong ITR form. For example, ITR-1 is meant for salaried individuals earning up to ₹50 lakh annually, but those with capital gains or multiple house properties must opt for ITR-2. Filing the incorrect form may lead to rejection of the return or significant refund delays.
Another common mistake is failing to report all sources of income. Many first-timers forget to include interest from savings accounts, fixed deposits, rental income, or dormant accounts. All sources must be declared—missing any could result in notices or penalties. Similarly, not checking Form 26AS and the Annual Information Statement (AIS) is a major oversight. These documents provide a consolidated view of tax deducted, financial transactions, and advance taxes paid. If your return doesn't align with these reports, the chances of facing issues increase significantly.
Choosing the wrong Assessment Year (AY) is another error that can cause complications. AY is the year following the Financial Year (FY) in which income is assessed. For instance, if you're filing for FY 2024–25, the correct AY is 2025–26. Mistaking the AY can lead to rejected returns or unwanted tax notices.
Some taxpayers try to claim inflated deductions under sections like 80C and 80D or submit fake rent receipts to increase HRA claims. The Income Tax Department now uses AI and data-matching tools to detect fraudulent deductions, and doing so could result in fines or legal action.
Final steps that matter: Don’t miss verification
New taxpayers also often forget to report all active bank accounts, especially those not used frequently. While you only need to pre-validate one account to receive a refund, all savings, current, and NRO accounts must be declared in your ITR.
Perhaps the most critical but overlooked step is verification. Filing your return is not complete until it is verified. If not verified within 30 days, the department considers the return as not filed. Verification can be done electronically using Aadhaar OTP, net banking, or by mailing a signed physical copy to the Centralized Processing Center.
Filing an accurate return builds credibility, ensures timely refunds, and keeps you out of legal trouble. If you’re uncertain at any stage, seek guidance from a qualified tax consultant or visit your nearest income tax office. The process may seem daunting, but with the right information, first-time filing can be smooth, stress-free, and even rewarding.
