Common Mistakes to Avoid When Filing Income Tax in India

Filing taxes doesn’t have to be confusing or stressful. Today we dive into one focused topic that saves money, time, and nerves by avoiding the traps countless filers encounter. Chosen theme: Common Mistakes to Avoid When Filing Income Tax in India.

Selecting the Wrong ITR Form

Salaried filers often default to ITR-1, forgetting capital gains from shares or ESOP perquisites push them to ITR-2. Report everything correctly to avoid notices and delays. Ask in comments if your situation feels borderline.

Selecting the Wrong ITR Form

Independent professionals frequently mix up ITR-3 and ITR-4 presumptive options. Turnover, presumptive sections, and expense claims determine the best fit. Unsure which route suits you? Share your revenue pattern, and we’ll break it down together.

Match Every TDS and TCS Entry

Cross-check employer, bank, broker, and platform deductions in 26AS. Even tiny interest TDS adds up. Readers often find unexpected credits that improve refunds. Comment if you discovered any surprise entries this season.

Don’t Underreport Interest and Small Incomes

AIS captures savings interest, cashback-like credits, and investment payouts. Riya once missed minor FD interest; reconciling AIS saved her a notice. Review line-by-line, then adjust schedules. Share your favorite reconciliation checklist in the thread.

Deductions and Exemptions: Missteps that Cost Money

Maximizing 80C without Double Counting

Avoid counting the same investment twice across ELSS, PPF, EPF, or tuition fees. One reader’s simple spreadsheet prevented duplicate claims and confusion. Want a sample tracker? Subscribe, and we’ll send a fresh, editable version.

Health, Donations, and the Fine Print

80D for parents, preventive check-ups, and 80G donation categories are frequently misapplied. Keep receipts and clarity on eligible payment modes. Share a tricky scenario, and we’ll crowdsource interpretations from seasoned filers.

HRA, Home Loan Interest, and Rent Agreements

HRA exemptions and Section 24(b) interest deductions can coexist, but documentation matters. Rent receipts, PAN of landlord when required, and co-borrower splits are vital. Tell us if you’ve balanced both successfully this year.

Capital Gains Reporting Pitfalls

For listed shares acquired before the 2018 cutoff, grandfathering rules apply. Missing this step exaggerates gains. A reader recovered substantial taxes by recalculating FMV. Post your equity timeline, and we’ll discuss approaches.

E-Verification, Deadlines, and Interest

Returns not e-verified within the allowed days may be treated as never filed. Readers often miss this step while celebrating submission. Set a reminder, and tell us your fail-safe verification routine.

E-Verification, Deadlines, and Interest

Filing after the due date triggers late fees and may restrict certain loss adjustments. Plan earlier, especially if you have multiple incomes. Share your scheduling hacks to dodge deadline anxiety and midnight panic.

Documentation, Proofs, and Scrutiny Readiness

Scan and tag receipts for deductions, capital gains proofs, and rent agreements. Cloud folders with year-wise labels save hours during queries. Tell us your folder structure; we’ll compile the best ideas for subscribers.

Documentation, Proofs, and Scrutiny Readiness

Many NRIs and returnees miss foreign accounts, ESOPs, or investments in Schedule FA. Full, accurate disclosure is essential. Share anonymized checklists you use for overseas assets, so others can refine their process.

Portal Hygiene and Pre-Filled Data Review

Unlinked Aadhaar–PAN or outdated contact information delays everything from OTPs to refunds. Five minutes of profile housekeeping prevents long queues later. Did a quick update save your filing this year? Tell us how.

Portal Hygiene and Pre-Filled Data Review

Refunds need a validated bank account in your profile. Many filers discover this only after waiting weeks. Verify today, then report your experience below so others can avoid the same pitfall.