ITR Deadline Extended to 15 September 2025 – 10 Common Mistakes to Avoid When Filing Income Tax Return
📅 Income Tax Return Due Date Extended
The Central Board of Direct Taxes (CBDT) has extended the Income Tax Return (ITR) filing deadline for the Assessment Year (AY) 2025–26 to 15 September 2025, giving taxpayers more time to complete their filings. This extension applies mainly to non-audit cases, such as salaried employees and freelancers who do not require tax audits. While this relief provides additional breathing room, it can also lead to complacency. Many taxpayers tend to delay filing until the very last moment, which increases the chances of making avoidable mistakes. Filing an error-free return on time ensures faster processing, smoother refunds, and avoids unnecessary scrutiny or penalties.
✅ 1. Choosing the Wrong ITR Form
The Income Tax Department has prescribed different ITR forms for different types of taxpayers. For instance, ITR-1 (Sahaj) is meant only for individuals with income up to ₹50 lakh from salary, one house property, and other sources (like interest income). If you have capital gains, own more than one house, or earn income from a proprietorship business or profession, you must use ITR-2 or ITR-3. Filing your return using the incorrect form can lead to your return being treated as “defective” under Section 139(9) of the Income Tax Act. This may result in delays in processing, a rejection notice, or the need to refile the return in the correct form, adding to your stress and paperwork.
✅ 2. Forgetting to E-Verify the Return
Submitting your ITR online is only half the job done. Once the return is filed, it must be verified within 30 days. Failing to verify your return means that it will be considered invalid and treated as if it was never filed at all. There are multiple methods to e-verify, including Aadhaar OTP, net banking, Demat account verification, and using Electronic Verification Code (EVC). Alternatively, one can physically sign and send the ITR-V (acknowledgment) to the CPC, Bengaluru. If you don’t complete this step in time, not only will your return be invalidated, but you may also incur late filing fees under Section 234F and lose interest on your refund.
✅ 3. Selecting the Wrong Assessment Year
This is one of the most overlooked mistakes. Many individuals confuse the Financial Year (FY) with the Assessment Year (AY). For income earned between 1 April 2024 and 31 March 2025 (FY 2024-25), the correct assessment year is AY 2025-26. Selecting the wrong year could result in the income tax portal showing no tax data or mismatches in processing. In many cases, this error leads to the taxpayer being asked to file a revised return, which consumes more time and could delay any refunds or assessments.
✅ 4. Providing Incorrect Personal Information
Accuracy in entering personal and bank account details is critical. Even a minor typo in your PAN, name, Aadhaar, IFSC code, or account number can result in the non-credit of your refund, failure in validation, or return mismatch. Also, inconsistencies between the details in your return and those in your Aadhaar or PAN records can trigger processing errors. Ensure that your email address and mobile number are current, as important alerts and updates from the Income Tax Department are sent there.
✅ 5. Not Reporting Other Income Sources
Many people focus only on their salary income and forget to declare other sources like:
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Interest from savings or fixed deposits
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Rental income from a second property
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Dividends
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Gains from mutual funds or stock trading
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Income from freelancing or part-time gigs
The Income Tax Department now uses AIS (Annual Information Statement) and TIS (Taxpayer Information Summary), which collect information from banks, mutual funds, registrars, and other institutions. If your return misses any income reported in these statements, you may receive a notice or inquiry, and may be liable for additional tax, interest, and even penalties.
✅ 6. Entering Data in the Wrong Format or Field
When filling the return manually or through utility software, input errors can lead to technical issues or rejections. Common mistakes include:
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Adding commas in numeric entries (₹1,00,000 instead of 100000)
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Using incorrect symbols (like minus signs instead of brackets for negative values)
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Leaving mandatory fields blank
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Entering TDS in the wrong schedule
To avoid such issues, use the pre-filled return facility provided on the e-filing portal and run the JSON validation tool before submission. This tool flags errors in real-time, saving you from future trouble.
✅ 7. Picking the Wrong Tax Regime
Since FY 2020-21, taxpayers can choose between the Old Regime (with deductions and exemptions) and the New Regime (with lower slab rates but no deductions). For example, under the old regime, you can claim deductions like:
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₹1.5 lakh under Section 80C
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Health insurance under 80D
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HRA exemption
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Interest on housing loans
But under the new regime, these are not available. If your total deductions are substantial, you might be better off under the Old Regime, even if the tax slabs seem higher. Use a tax calculator or consult a professional before making your choice, as you cannot change it after the due date.
✅ 8. Not Claiming Exemptions on Capital Gains Properly
If you sold property, gold, or shares and earned capital gains, you can reduce or eliminate tax by reinvesting the proceeds under:
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Section 54 – purchase/construction of a residential house
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Section 54EC – investment in specified bonds (like NHAI, REC)
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Section 54F – purchase of a residential house when there is no other house
However, just making the investment is not enough. You must report the details in the relevant ITR schedule (like CG) and attach proof (bond receipts, sale agreements, etc.). Missing this step can result in your entire gain being taxed, along with interest for delayed payments under Sections 234B and 234C.
✅ 9. Ignoring Department Notices or Communications
The tax department may send alerts, reminders, or notices via email and SMS regarding discrepancies in your return, AIS/TIS mismatches, or pending verifications. Not responding to these within the prescribed time may lead to:
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Automatic adjustments
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Income being added to your return without your input (best judgment assessment)
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Penalties under Section 272A(2)(c) up to ₹10,000
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In severe cases, it can lead to scrutiny or prosecution
Always check your email and login to the income tax portal regularly, especially during the filing season. Keep an eye on the “Pending Actions” section in your dashboard.
✅ 10. Not Paying Advance Tax (if applicable)
If your total tax liability (after adjusting for TDS/TCS) exceeds ₹10,000 in a financial year, you are required to pay advance tax in four installments:
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15% by 15th June
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45% by 15th September
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75% by 15th December
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100% by 15th March
Many taxpayers assume that if TDS is deducted by their employer or bank, they don’t need to pay advance tax. But if you have freelance income, capital gains, FD interest, or rental income not covered by TDS, you may need to pay it directly. Failing to do so results in interest at 1% per month under Sections 234B and 234C, which increases your overall tax burden.
📝 Conclusion: File Early, File Correctly
While the deadline extension to 15 September 2025 gives you more time, it should not be a reason to delay. Early filers:
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Get priority in refund processing
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Have time to correct errors if notified
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Avoid portal overload and last-minute glitches
Start by downloading your Form 16, AIS/TIS, and bank statements, choose the correct ITR form, review deductions, verify income, and file well in advance. If required, consult a tax expert to ensure accuracy. Filing an error-free return not only reduces your tax liability but also ensures a stress-free tax season.