Lawizer

Introduction

Filing an Income Tax Return (ITR) as a salaried employee often feels like navigating a bureaucratic maze. In 2026, the Income Tax Department has shifted toward advanced AI-driven data processing.

This means even a minor clerical error can trigger an automatic tax notice.

While technology has increased scrutiny, legal-tech platforms like Lawizer have made the process seamless. By connecting you with verified experts, Lawizer ensures your filing is stress-free and accurate.

10 Common ITR Filing Mistakes You Must Avoid

To ensure a smooth filing season, keep an eye out for these frequent pitfalls:

1. Selecting the Wrong ITR Form

Choosing the incorrect form results in a “Defective Return” notice.

ITR-1 (Sahaj): For individuals with income up to ₹50 lakhs and one house property.
ITR-2: For those with capital gains, multiple house properties, or income exceeding ₹50 lakhs.
ITR-3: For individuals with business or professional income.

2. Quoting the Wrong Assessment Year (AY)

For the current Financial Year (FY 2025-26), the corresponding Assessment Year is 2026-27. Confusing these dates can lead to double taxation or immediate rejection.

3. Errors in Personal and Bank Information

Your bank account must be pre-validated on the portal. Ensure your name and address match your PAN exactly. An incorrect IFSC code can stall your refund for months.

4. Failure to Disclose “Hidden” Income Sources

Don’t forget to report:

Savings Interest: Deductible up to ₹10,000 under Sec 80TTA.
Dividends: Often overlooked but taxable.
Minor’s Income: Deductible up to ₹1,250 per child (up to 2 children).

5. Manual Entry and Formatting Errors

Data must match your employer’s TDS filing perfectly. Inconsistent formatting often leads to automated system rejections.

6. Ignoring AIS and TIS Reconciliations

The Annual Information Statement (AIS) tracks stock trades, FD interest, and large credit card spends. If your ITR doesn’t match your Taxpayer Information Summary (TIS), an inquiry is almost certain.

7. Mismatching TDS with Form 26AS

Always verify that the tax deducted by your employer or bank is reflected in Form 26AS. If it isn’t, you won’t receive credit for that tax, resulting in a higher payout.

8. Forgetting Section 80 Deductions

Look beyond Section 80C. You can also claim: