Income Tax Filing 2025: Extended Deadline and 10 Common ITR Mistakes You Must Avoid

The Income Tax Department has extended the deadline for filing Income Tax Returns (ITR) for the financial year 2024–25. Instead of the usual July 31, taxpayers now have time until September 15, 2025 to submit their returns. While the extension offers some relief, it’s strongly recommended to file early. Early filing helps avoid last-minute rushes, gives you time to correct errors, and ensures smooth processing of refunds.

Who Needs to File?

If your total annual income exceeds ₹2.5 lakh under the old tax regime or ₹3 lakh under the new regime, you are required to file an ITR-even if your taxable income is zero or all your taxes have already been deducted. Filing is not optional in such cases, and failure to do so can attract penalties or legal consequences.

But even with more time, many people make common mistakes during the ITR process that can delay refunds or even lead to notices from the tax department. Here are 10 frequent ITR errors to watch out for in 2025:

1. Using the Wrong ITR Form

Filing the return using an incorrect form is a major reason for rejection. For instance, ITR-1 is only valid for salaried individuals with income up to ₹50 lakh and no capital gains. Choose your form based on your income type and sources.

2. Not Verifying the Return

After filing your return, e-verification is mandatory. Without it, your return will not be considered as filed. You can verify through Aadhaar OTP, net banking, or other online methods.

3. Choosing the Wrong Assessment Year

For income earned between April 2024 and March 2025, the correct assessment year is 2025–26. Selecting the wrong year can cause confusion and may result in penalties.

4. Incorrect Personal Information

Mistakes in personal details like name, PAN number, date of birth, bank account, or contact info can lead to delayed refunds or return rejections. Double-check all information before submission.

5. Not Reporting All Income Sources

Many taxpayers forget to report interest from savings accounts, fixed deposits, rental income, or capital gains. All sources of income must be declared-even if TDS has already been deducted.

6. Entering Data in the Wrong Format

ITR forms have specific formats. Incorrectly filling in income, deductions, or bank details can lead to processing errors or miscalculations.

7. Selecting the Wrong Tax Regime

The old and new tax regimes offer different benefits. Picking the wrong one can mean losing out on exemptions or deductions. Evaluate your situation carefully before choosing.

8. Missing Out on Exemption Claims

If you have reinvested capital gains-for example, in a new property-you can claim exemptions under Sections 54, 54EC, or 54F. Missing these claims could cost you higher tax.

9. Ignoring Tax Notices

If the Income Tax Department sends you a notice, do not ignore it. Respond within the specified timeframe. Failure to do so may lead to fines, scrutiny, or legal action.

10. Not Paying Advance Tax

If you’re liable to pay advance tax and don’t, you’ll incur 1% monthly interest on the unpaid amount. Salaried individuals with additional income and freelancers should especially watch out for this.

An extended deadline doesn’t mean you should wait till the last moment. Filing early not only gives you peace of mind but also helps in faster refunds and error-free processing. Review your documents carefully, choose the right tax regime, and avoid the common pitfalls listed above to ensure a smooth ITR filing experience in 2025.