Filing ITR for the first time? 7 common errors new taxpayers must avoid

India Today

a day ago

Filing your income tax return for the first time can feel confusing, but it's an important part of managing your money. Many first-time taxpayers make small mistakes that could delay refunds, invite tax notices or cause stress later.With the FY 2024–25 filing season underway, it's wise to know where people often slip up. Here are five common mistakes to avoid, so your return is smooth, correct and stress-free.advertisementCHOOSING THE WRONG ITR FORMMany first-time taxpayers pick the wrong ITR form. For instance, if you have a simple salary income of up to Rs 50 lakh, ITR-1 is for you.
But if you have capital gains or more than one house, you might need ITR-2. Filing the wrong form may delay your refund or even lead to a rejected return. So, check your total income and get help if you are unsure.NOT REPORTING ALL INCOMEA lot of first-timers forget to add income from savings account interest, fixed deposits or rent. Some even miss small incomes from old bank accounts.Remember, hiding or forgetting any income can lead to a notice or penalty later. Write down every source of income and include it in your ITR honestly.IGNORING FORM 26AS AND AISMany first-time taxpayers, especially salaried people, often depend only on their Form 16 provided by their employer. They forget to check other key documents, like the Annual Information Statement (AIS) and Form 26AS. These reports give a full picture of the taxes deducted and other financial details for the year.Matching these statements with your own records helps you file an accurate return and avoid mistakes or delays in refunds.CHOOSING THE WRONG ASSESSMENT YEARWhen filing your ITR, make sure you pick the correct Assessment Year (AY). Entering the wrong AY may lead to notices or penalties from the tax department.Always remember, the AY is the year when you actually file the return. So, for income earned in FY 2024–25, the AY will be 2025–26.SUBMITTING FAKE INVOICESOften, new taxpayers try to claim higher deductions by using fake bills under sections like 80C or 80D, or by submitting false rent receipts to get more HRA. Some even inflate the value of actual bills.The Income Tax Department now keeps a strict watch and sends notices if such false claims are found. So, claim only genuine deductions to avoid penalties.NOT DECLARING ALL BANK ACCOUNTSMany people declare only the bank account where their salary comes in. But you must report all your active bank accounts, savings, current or NRO.You need to pre-validate just one account for refund, but not reporting others may cause problems.FORGETTING TO VERIFY ITRFiling your ITR is not enough. You must verify it too. If you forget, the tax department treats it as if you never filed it at all. You can e-verify using Aadhaar OTP, net banking, or by sending a signed physical copy. Without verification, your return stays incomplete.If you feel confused, don't hesitate to talk to a tax expert or visit your nearest income tax office. Filing on time and without errors will help you get your refund faster and keep you stress-free.- EndsTrending Reel