What are Some of the Common Tax Mistakes to Avoid?

MD Posted by: Mihir Dutta
• 19 September, 2025
4 Reply

Here are some of the top common mistakes that an applicant makes while filing an ITR. 

  • Using the wrong Tax form: One of the common mistakes of applicants is filing an incorrect income tax form. If the income tax department finds any incorrect tax form, then it will be marked as 'Defective', and you can get a penalty of 50% or 100% for filing misinformation in the ITR. 
     
  • Mentioning wrong details in the Tax form: If you have written wrong or misinformation in the Tax form, like the incorrect contact number, email ID, PAN number, Aadhaar number, then you could get an income tax notice. To avoid this, you should fill in all the details correctly in your Income Tax Returns. 
     
  • Incomplete bank details: If you have entered incomplete bank details in the Income Tax form, then it will be difficult for you to get the tax refund. To get your tax refund easily, you need to make sure you write the correct bank details in your tax form, like bank account number, IFSC code, or any other information. 
     
  • Wrong assessment Year: Make sure you have written the correct assessment years for your income tax returns. Writing an incorrect assessment year can result in notices and penalties from the Income Tax department. So always mention the correct assessment year in the format FY 2024-25, 2025-26. 
     
  • Claiming incorrect deductions or exemptions: If you have claimed incorrect deductions or exemptions, then you could be in trouble. So make sure or consult with a professional tax expert and write correct claimable exemptions and deductions.   
     
  • Submitting Fake or Wrong Disclosure: Submitting fake receipts, or deductions with respect to section 80C / 80D, etc, to calculate house rent, some applicants attach fake documents to claim House rent allowance. 

Tags : Tax Mistakes to Avoid

  • Shubham Jain 26 September, 2025

    Here is a list of the common mistakes to avoid when filing an ITR. 

     

    • Choosing the incorrect Tax form
    • Writing the wrong assessment year
    • Not mentioning the source of Income
    • Filing incorrect details in the ITR
    • Entering incorrect information, but manually
    • Failed to check Form 26AS and AIS 
    • HRA is not given by the employers
    • Not availing of the available deductions
    • Forgot or did not pay the advance tax
    • Failed to e-verify the ITR within the given time  
    • Forgot to mention foreign assets in the ITR

     

  • Neel Kaul 24 September, 2025

    Why is it important to avoid tax mistakes while filing an ITR? 

    • DV
      Deepa Verma 25 September, 2025

      It is important to file Income Tax Returns carefully because a small and single mistake can lead you to trouble, and you can face an Income Tax Department notice or get penalized. If you file an incorrect tax form that does not apply to you, then it will be marked 'Defective' by the Income Tax department for issuing a wrong tax form under section 139 (9) of the Income Tax Act, and you will receive a defective return notice. 

  • Aarav Sharma 22 September, 2025

    I have filed an Income Tax form for my ITR, and in the tax form, I forgot to add the foreign assets and liability details, which are essential according to the Income Tax Act of 1961. All the residents and or individuals Indians need to report their accounts, shares, and assets in the Schedule FA of the ITR.  

    Schedule Foreign Assets is a schedule in the income tax return where you need to fill in all the details of your foreign assets and property, like foreign companies, mutual funds, direct employee stock options of foreign companies, and foreign shares. 

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