5 Common Income Tax Mistakes

Filing ITR is not just about getting a refund; it’s about accurate reporting. With the AI-driven scrutiny system, even small errors can trigger a defective return notice (u/s 139(9)). Avoid these common pitfalls.

1. Ignoring AIS/TIS Data

The Annual Information Statement (AIS) is the single most important document today. It contains details of your:

• Share market transactions
• Fixed Deposit interest
• Dividend income
• Real estate purchases

Mistake: Filing ITR based only on Form 16 and ignoring AIS. If your reported income is less than what’s in AIS, you will get a notice.

2. Choosing the Wrong ITR Form

Form selection is critical.

Mistake: A salaried person with ₹100 profit from shares filing ITR-1. This is invalid.

3. Not Reporting Interest Income

Many believe Savings Bank interest is tax-free. It is NOT tax-free. It is exempt only up to ₹10,000 under Section 80TTA.

Correction: Add all savings interest under “Income from Other Sources” and then claim deduction u/s 80TTA.

4. Failing to Verify ITR-V

Filing is incomplete without verification. You must e-Verify using Aadhaar OTP within 30 days of filing. If you don’t, your return is treated as invalid, as if you never filed it.

Final Advice

Take your time. Download your AIS, Form 26AS, and Form 16. Cross-verify everything before hitting the submit button. A little caution saves a lot of trouble.