This Mistake in ITR Filing Can Prove to Be Costly, Income Tax Notice Will Come Directly! Filing Income Tax Returns (ITR) is an important duty for every taxpayer in India. Every year, millions of people file their ITR to report their income and pay taxes honestly. However, many taxpayers make some common mistakes while filing their returns. These mistakes can cost you heavily because the Income Tax Department keeps a close eye on mismatches or errors. If any serious mistake is found in your return, you may receive a notice from the Income Tax Department.
Let us understand in simple words which mistakes can prove to be costly and how you can avoid them.
Why ITR Filing Mistakes Are Serious?
The Income Tax Department has advanced technology and strong data-matching systems. Your income details, salary slips, TDS (Tax Deducted at Source), and bank transactions are already reported to the department by employers, banks, and other institutions. If your ITR does not match with these records, the system immediately detects the error. In such cases, a notice may be sent to you asking for an explanation.
That is why filing your ITR carefully is very important. Even a small mistake can bring unnecessary trouble.
Common Mistakes in ITR Filing
1. Not Reporting All Sources of Income
Many taxpayers think that they only need to report their salary. But this is wrong. If you earn money from fixed deposits, savings account interest, rental income, freelance work, or capital gains, you must declare it. Not reporting these incomes can result in a mismatch with Form 26AS or AIS (Annual Information Statement), and you may get a notice.
2. Giving Wrong Bank Account Details
Your bank account details are required in the ITR for refunds. If you provide the wrong account number or IFSC code, your refund will be delayed or may not reach you at all.
3. Mismatch in TDS Details
TDS is deducted by your employer or bank and reflected in Form 26AS and AIS. If you enter wrong TDS details in your ITR, it will not match the records in the Income Tax portal. This will raise a red flag.
4. Not Verifying the ITR
Many people file their returns but forget to e-verify them. Remember, your ITR is considered incomplete unless it is verified within 30 days of filing. An unverified return means it will be treated as not filed, and penalties may apply.
5. Using the Wrong ITR Form
Different ITR forms are applicable for different types of taxpayers. For example, salaried individuals use ITR-1 or ITR-2, while business owners may have to use ITR-3 or ITR-4. If you choose the wrong form, your return may be rejected.
6. Claiming Wrong Deductions
This Mistake in ITR Filing Can Prove to Be Costly, Income Tax Notice Will Come Directly!Taxpayers often claim deductions under sections like 80C, 80D, or 80G. But if you claim more than what is actually allowed, or show fake investment proofs, the system will catch it. This can lead to penalties.
7. Ignoring High-Value Transactions
This Mistake in ITR Filing Can Prove to Be Costly, Income Tax Notice Will Come Directly! If you have deposited more than ₹10 lakh in your bank account, invested a large amount in mutual funds, or bought property above a certain value, these details are already reported to the tax department. Not mentioning them in your ITR can trigger a notice.
What Happens If You Make These Mistakes?
If your ITR has mistakes, the Income Tax Department can send you a notice under different sections. You may be asked to explain the mismatch, provide proof of income, or correct your return. In some cases, you may also have to pay additional tax, interest, or penalties.
For serious errors or cases of tax evasion, there may even be legal action. That is why it is better to file your ITR honestly and correctly.
How to Avoid Mistakes While Filing ITR?
- Collect All Documents – Keep your Form 16, Form 26AS, AIS, bank statements, and investment proofs ready.
- Check Form 26AS and AIS – Always cross-check your income and TDS details with these forms before filing.
- Choose the Correct ITR Form – Understand which ITR form applies to your situation.
- Double-Check Your Details – Verify PAN, Aadhaar, bank account number, and income details carefully.
- Do Not Hide Income – Report all sources of income, even small interest amounts.
- Verify the Return – Always e-verify your ITR within the given time limit.
- Take Professional Help if Needed – If your income is complicated, consult a tax expert or chartered accountant.
Conclusion
Filing your ITR is not just about following the law but also about avoiding unnecessary stress later. A small mistake, like forgetting to verify your return or not reporting interest income, can bring a big problem in the form of a notice from the Income Tax Department.
So, always be careful, check your details twice, and file your ITR honestly. Remember, a correct and timely ITR not only saves you from penalties but also helps in smooth refunds and a clean financial record.
