ITR Filing 2025-26: Four Mistakes Salaried Taxpayers Must Avoid
The Income Tax Return (ITR) filing 2025-26 season is here, and salaried taxpayers must stay alert. A simple error while filing your ITR can delay refunds, trigger scrutiny, or lead to penalty notices under the Income-tax Act, 1961. Here are four common ITR filing mistakes you should avoid to stay compliant and stress-free.
1. Choosing the Wrong ITR Form
For AY 2025–26, CBDT has notified updated ITR forms via Notification No. 40/2025 dated 29.04.2025. Salaried individuals generally need to choose between:
| ITR Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Salary, One House Property, Other Income (e.g. interest), total income up to ₹50 lakh |
| ITR-2 | Salary + more than one house property / capital gains / foreign income |
| ITR-3 | If you have income from business or profession (e.g. partner in a firm) |
| ITR-4 (Sugam) | Presumptive income from business or profession under Sections 44ADA/44AD |
Expert Tip:
If you had ESOPs, stock trading, or multiple house properties—even if your salary is the main source—don’t use ITR-1. It can result in a defective return under Section 139(9).
2. Mismatch Between Form 16 and AIS
Many salaried individuals blindly copy data from Form 16, ignoring the Annual Information Statement (AIS) on the income tax portal. But AIS captures more details—interest from FD, dividend, stock sales, credit card spends, and even foreign remittances.
How to cross-verify:
- Login to https://incometax.gov.in
- Go to Services > AIS
- Match TDS, salary, interest, and capital gains with your Form 16 and bank records
Legal Insight:
Under Section 143(1), the CPC system does an automatic mismatch check. If AIS shows extra income not declared in ITR, you’ll get an intimation for tax difference—and interest under Section 234B/234C may apply.
3. Missing Deductions and Tax Benefits
Even if your employer gave Form 16, you can still claim missed deductions while filing ITR:
- Section 80C: LIC, PPF, ELSS, children’s tuition fees
- Section 80D: Medical insurance premiums
- Section 80TTA/80TTB: Interest on savings accounts
- Section 80E: Education loan interest
- Section 24(b): Housing loan interest
Also check:
| Scenario | Claim Option |
|---|---|
| Paid life insurance premium post-April | Still eligible under 80C |
| Missed rent receipts for HRA | May still claim based on bank entries |
| Changed house mid-year | Split HRA and housing loan claims |
Expert View:
Many taxpayers forget to claim Section 80CCD(1B)—additional ₹50,000 for NPS investment. It’s over and above ₹1.5 lakh under 80C.
4. Not Verifying ITR on Time
Filing is not complete until you e-verify your return within 30 days. Failing to do so makes your return invalid under Rule 12AD.
Verification options:
- Aadhaar OTP
- Net banking
- Demat account OTP
- Bank account-based EVC
- Sending signed ITR-V to CPC, Bengaluru
Reminder:
If you don’t verify, it’s treated as not filed—which can attract late fees under Section 234F and even a notice under Section 142(1).
What Happens If You Make a Mistake?
- Defective return notice under Section 139(9)
- Delayed refund or no refund until corrected
- Late filing fees up to ₹5,000 under Section 234F
- Scrutiny notice if income mismatch is significant
Final Checklist for Salaried ITR Filers
✅ Download AIS and TIS
✅ Match with Form 16 and bank records
✅ Claim eligible deductions missed by employer
✅ Choose correct ITR form
✅ E-verify ITR within 30 days
FAQs
Q1. Can I revise my ITR if I choose the wrong form?
Yes, you can revise it before 31st December 2025 under Section 139(5).
Q2. Do I need to file ITR if my salary is below taxable limit?
Only if TDS is deducted or you want a refund or are covered under mandatory filing conditions (e.g., foreign travel, electricity bills > ₹1 lakh).
Q3. Can I switch to the old tax regime while filing?
Yes, if you’re salaried, you can choose either regime during ITR filing even if your employer opted for new tax regime in Form 16.
Summary
Avoid these 4 ITR filing mistakes in AY 2025–26: wrong ITR form, mismatch with AIS, missed deductions, and late verification. Stay compliant and claim your refund faster.