ITR E-Filing FY 2024-25: Income Taxpayers, Beware! These 7 Mistakes Can Cost You Big

The Income Tax Return (ITR) filing season for FY 2024-25 (AY 2025-26) is officially underway, and this year comes with major changes that every taxpayer must pay attention to. The Government has granted a 45-day extension, shifting the due date from July 31 to September 15, 2025, due to substantial structural modifications introduced in the Union Budget 2024.

While the extended deadline gives taxpayers more breathing room, errors in ITR filing can still result in penalties, delays in refunds, and even Income Tax Department notices. To ensure a smooth and hassle-free filing experience, here are 7 critical mistakes to avoid:

✅ 1. Choosing the Wrong ITR Form

One of the most common errors is selecting the incorrect ITR form. The choice of form depends on your income source, income amount, and category of taxpayer (individual, HUF, company, etc.).

🔴 Why it matters:

Filing with the wrong form can result in rejection of your return.
You may have to refile, leading to delays or even penalties.

📝 Tip:

Check the official Income Tax e-filing website or consult a tax expert to know which ITR form (ITR-1 to ITR-7) applies to you based on your income type.

✅ 2. Ignoring AIS & Form 26AS Verification

Many taxpayers overlook verifying their Annual Information Statement (AIS) and Form 26AS. These documents contain detailed records of:

TDS deducted
Advance taxes paid
High-value financial transactions
SFT (Specified Financial Transactions)

🔴 Why it matters:

Any mismatch between your reported income and AIS/Form 26AS can trigger scrutiny and IT notices.

📝 Tip:

Cross-check these forms before finalizing your return to avoid discrepancies.

✅ 3. Incomplete or Misreported Income

Some people assume that they can skip reporting certain incomes such as:

Freelance earnings
Interest from savings accounts
Capital gains from stocks or mutual funds

🔴 Why it matters:

Omitting income can lead to penalties of up to 200%, interest charges, and even prosecution in some cases.

📝 Tip:

Declare all sources of income, including exempt income and foreign income, even if no tax is payable.

✅ 4. Ignoring Budget 2024 Changes

Budget 2024 has introduced several changes, such as:

Reworked ITR formats
Modified rules on capital gains
Adjustments in deductions and exemptions

🔴 Why it matters:

Not accounting for these changes can result in calculation errors or incorrect tax claims.

📝 Tip:

Study the new ITR structure and Budget amendments before filling your form. The new format has additional compliance sections that need attention.

✅ 5. Skipping Exempt Income Declaration

Although some income is exempt from tax, like:

PPF interest
Dividend below ₹10 lakh
Agricultural income

…it still needs to be declared under Schedule EI.

🔴 Why it matters:

Non-disclosure may raise suspicion, especially if there’s a mismatch with your financial footprint (e.g., large investments, loans, property purchases).

📝 Tip:

Always report exempt income, even if it doesn’t affect your tax liability.

✅ 6. Not Including Previous Employer’s Income

If you switched jobs during FY 2024-25, ensure you consolidate your income from all employers. Often, both employers deduct TDS assuming you’re claiming full exemptions and deductions only with them.

🔴 Why it matters:

Duplicate claims for standard deductions, Section 80C benefits, or HRA can result in underpaid taxes and future tax demands.

📝 Tip:

Download your Form 16 from all employers and merge the salary details before filing ITR.

✅ 7. False or Unsupported HRA Declarations

Claiming HRA (House Rent Allowance) without proper documents is a risky move.

🔴 Why it matters:

Incorrect or inflated claims can attract a penalty of up to 200% of the wrongly claimed exemption.

📝 Tip:

You need to submit:

Rent agreement
Rent receipts
Landlord’s PAN (if annual rent exceeds ₹1 lakh)

Also, ensure you actually live in a rented house to make a valid HRA claim.

🕒 Bonus Tip: File Before the Deadline – September 15, 2025

The deadline for filing ITR for FY 2024-25 has been extended to September 15, 2025, but waiting till the last moment can be risky due to:

Server slowdowns
Errors in return filing
Limited time for correction

📌 Final Words

With new compliance requirements, extended deadlines, and updated ITR forms, this year’s tax filing process may seem overwhelming—but a careful approach can save you a lot of stress. Avoid these 7 mistakes and always review, verify, and cross-check before submitting your return.

If in doubt, consult a Chartered Accountant or tax consultant to avoid missteps that could cost you time, money, and peace of mind.

Stay tuned for more updates on income tax, finance tips, and investment insights.

📣 If you found this post helpful, share it with your friends and colleagues!