Common Mistakes People Make While Filing ITR

Filing an Income Tax Return (ITR) is not merely a procedural formality—it is a statutory declaration of income under the Income-tax Act, 1961. With increasing digitisation and online filing, mistakes in income tax return filing have also increased due to incorrect data entry, mismatch of information, and improper selection of forms.

At Compliance Craft Advisors Private Limited, we regularly observe that many taxpayers commit common tax filing mistakes which later result in notices from the Income-tax Department, interest liability, penalties, or delay in refunds.

This article explains the most common ITR filing errors in India, their consequences, and how to correct them.

What Are the Common Mistakes While Filing ITR?

Some of the most frequently observed mistakes made while filing ITR online are:

• Form 16 mismatch with ITR

• Mismatch in AIS and Form 26AS

• Incorrect income disclosure

• Wrong tax calculation

• Wrong deduction claimed

• Incorrect bank details in ITR

• Selecting wrong ITR form

These errors in ITR filing are automatically picked up by the Income-tax Department’s system and usually lead to intimation, adjustment, or notice.

What Mistakes Should Be Avoided While Filing ITR?

To avoid wrong ITR filing mistakes, every taxpayer should ensure:

• All sources of income are disclosed (salary, interest, capital gains, business, freelance, foreign income, etc.)

• AIS and Form 26AS are properly reconciled

• Correct ITR form is selected

• Deductions are claimed only if legally eligible

• Tax calculation is cross-verified

• Bank account number and IFSC code are correct

• ITR is verified after filing

Non-disclosure or incorrect disclosure of income may be treated as under-reporting or misreporting under the Income-tax Act.

What Happens If Mistakes Are Made in ITR?

If income tax filing errors are found, the following consequences may arise:

• Adjustment of income and tax by CPC

• Demand notice along with interest

• Disallowance of deductions

• Delay or rejection of refund

• Scrutiny notice under Section 143(2)

• Penalty for under-reporting or misreporting of income

Even genuine mistakes can result in unnecessary financial and compliance burden if not corrected in time.

Can I Correct Mistakes After Filing ITR?

Yes. The Income-tax Act allows you to file a Revised Return under Section 139(5) if:

• You have forgotten to report any income

• You have claimed a wrong deduction

• You have selected the wrong ITR form

• You have made any calculation or data entry mistake

A revised return can be filed before 31st December of the relevant Assessment Year or before completion of assessment, whichever is earlier.

How to Rectify Mistakes in Income Tax Return?

There are two legal methods to correct errors in ITR filing:

1. Revised Return (Section 139(5))

This should be used when the mistake is from the taxpayer’s side such as:

• Wrong income reported

• Wrong deduction claimed

• Wrong ITR form selected

2. Rectification Request (Section 154)

This is used when:

• CPC has made an arithmetical or technical error while processing the return

In short:

• If you made the mistake → File Revised Return

• If department made the mistake → File Rectification

What Are Common Income Tax Filing Errors?

Some of the most common income tax filing errors in India are:

• Mismatch in AIS and Form 26AS

• Form 16 not matching with salary reported in ITR

• Non-reporting of interest income from bank or FD

• Wrong deduction claimed under Section 80C, 80D, etc.

• Wrong tax regime selected

• Incorrect bank account details

• Wrong ITR form selected

These mistakes in income tax return filing are the main reasons for notices and refund delays.

Is Wrong ITR Filing Penalized?

Yes. Depending on the nature of default:

• Interest may be levied under Section 234A, 234B, and 234C

• Late filing fee may be charged under Section 234F

• Penalty for under-reporting income may be levied under Section 270A

• In serious cases, prosecution proceedings may also be initiated

Wrong or careless filing can convert a simple compliance into a costly legal problem.

Important Advisory from Compliance Craft Advisors Private Limited

Today, the Income-tax Department already has access to:

• AIS

• Form 26AS

• TDS and SFT reports

• Bank and investment transaction data

Any mismatch is automatically flagged by the system.

ITR filing is no longer a clerical activity. It is a legal declaration with serious financial and penal consequences.

How Compliance Craft Advisors Private Limited Can Help You

We provide:

• Professional review of Form 16, AIS and Form 26AS

• Error-free ITR filing

• Revised return and rectification services

• Income-tax notice handling and scrutiny support

• Tax planning and compliance advisory

Conclusion

Mistakes in income tax return filing are common, but their consequences can be expensive.

A professionally reviewed and correctly filed ITR is the best protection against notices, penalties, and litigation.