Avoid a Tax Notice: 10 Key Areas to Focus on When Filing Your ITR for 2024-25

Filing your Income Tax Return (ITR) is a crucial annual task — but a small oversight can have big consequences. Whether you’re a salaried employee, a freelancer, or a business owner, even minor mistakes in your ITR can lead to unwanted scrutiny or an income tax notice from the department.

The Income Tax Department has recently extended the deadline for ITR filing for Financial Year 2024–25 (Assessment Year 2025–26) from 31st July to 15th September 2025. But don’t wait till the last minute — early and accurate filing is the key to hassle-free processing and timely refunds.

Here are the top 10 common mistakes in ITR filing that can trigger tax notices — and how you can avoid them:

Incorrect Personal Information

Your ITR must contain accurate personal details such as name, PAN, date of birth, address, mobile number, and email ID. A mismatch or error in these fields can cause your return to be rejected or delayed.

Wrong Bank Account Details

Even if you’re not expecting a refund, incorrect bank details (like account number, IFSC, or MICR code) can cause refund failures or unnecessary complications. Double-check this section before submitting your return.

Failure to Report All Bank Accounts

Many taxpayers forget or avoid disclosing all their active bank accounts. However, as per income tax rules, disclosing all domestic savings and current accounts (except dormant ones) is mandatory. Failing to do so can be treated as non-compliance.

Mismatch in TDS Details (Form 26AS vs ITR)

Your Form 26AS and Annual Information Statement (AIS) reflect TDS deducted by employers, banks, and other deductors. Make sure the TDS data in your ITR matches the figures reported in these forms to avoid notice for under-reporting income.

Underreporting or Omitting Income

Hiding income — whether from salary, freelance work, interest, dividends, rent, or capital gains — is considered tax evasion. The I-T Department uses data analytics to track income sources, so full disclosure is essential.

Choosing the Wrong ITR Form

Each ITR form is designed for specific types of taxpayers. Using the incorrect form — for example, filing ITR-1 instead of ITR-2 for capital gains income — can render your return defective or invalid. Know your form type before filing.

Not Reviewing the Updated ITR Forms

ITR forms are updated almost every year to reflect new disclosure requirements. Failing to read the form carefully or ignoring new fields can lead to errors. Always go through the instructions thoroughly before starting.

Errors in Income Calculation

Ensure your income from all heads — salary, house property, capital gains, business, and other sources — is calculated correctly. Also, remember to claim only eligible deductions. Mistakes here can lead to tax demand notices.

Last-Minute Filing Rush

Filing close to the deadline increases the chances of mistakes due to haste. Additionally, website crashes or login issues near the deadline may cause further delays. Filing early not only helps avoid stress but also ensures faster refund processing.

Failure to E-Verify ITR

Simply submitting your return is not enough — you must e-verify it (through Aadhaar OTP, net banking, or other methods) within 30 days. If not verified, your ITR will be considered invalid.

Read More: ITR 2025: Essential Checklist for Salaried Individuals

The Income Tax Department is increasingly using AI and data integration to flag discrepancies. So, filing an error-free ITR is no longer just good practice — it’s essential.

Avoiding the above mistakes can help ensure a smooth, notice-free ITR filing experience for FY 2024–25. When in doubt, consult a qualified tax professional or CA to guide you through the process.

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