Highlights Risks of filing your ITR too early for FY 2024-25

Don’t rush to file your ITR

Don’t rush to file your ITR” highlights the risks of filing your Income Tax Return (ITR) too early, especially before Form 26AS and AIS (Annual Information Statement) are fully updated.

What Can Happen If You File Early

• Mismatch risk: TDS and income details in your return may not match Form 26AS/AIS.
• TDS and SFT data deadline: 31st May, but it takes about a week to reflect in AIS.
• Early ITR filing may be technically possible on the portal, but it’s not advisable.

What’s the Issue?

• The tax paid and income details you file may differ from records available to the IT Department.
• This mismatch can trigger:
  • Notices from the IT Department
  • Revised return filing
  • Higher tax implications if revised after 31st December (due to interest + penalty).

What if You File Early?

• Risk of under-reporting or incorrect TDS/income.
• TDS not reflected yet → revised return needed once it appears.
• Filing updated return after 31st Dec 2025 means extra cost.

What Should You Do?

• Wait for Form 26AS & AIS to get fully updated — usually by 15 June.
• Use the time to compile and reconcile your financial data.
• If needed, file a revised return before 31st Dec to avoid penalties.

Summary

Action	Recommendation
File ITR before June 15	❌ Avoid — Data mismatch risk
File ITR after June 15	✅ Safer — Form 26AS/AIS updated
File revised return after Dec 31	❌ Avoid — Interest + penalty
File revised return by Dec 31	✅ Allowed without extra cost

5 lesser-known tax-saving avenues to reduce your income tax liability for FY 2024-25 (AY 2025-26) Quick about deduction can be claim :

Section	Purpose	Deduction Limit
80E	Education loan interest	No limit (interest only)
80TTA / 80TTB	Savings/Deposit interest	₹10,000 / ₹50,000
80DD	Maintenance of disabled dependent	₹75,000 / ₹1,25,000
80GGC	Donation to political parties	100% (non-cash)
80RRB	Royalty/patent income	Up to ₹3,00,000

Checklist for Salaried Employee in New Regime (FY 2025-26)

• Opt for Corporate NPS (National Pension Scheme) : Claim tax benefit under section 80CCD(2) on employer’s contribution. Deduction up to 14% of basic salary is allowed (for central government employees) or up to 10% (for others).
• Disclose All Additional Incomes: Include Dividend Income, Rental Income, and Interest Income from Banks, etc., in your return.
• TDS on House Rent: Deduct 2% TDS if you are paying house rent above ₹50,000/month under section 194-IB.
• Post Office Interest Income: Exempt up to:
  • ₹3,500 per year (single account)
  • ₹7,000 per year (joint account)
• Interest in Home Loan: If you earn rental income, then deduct home loan interest under Income from House Property. (Note: Deduction under section 24(b) for self-occupied property is not allowed in the new regime.)
• LTCG on Shares: Long-Term Capital Gains (LTCG) on sale of listed shares/stocks are exempt up to ₹1.25 lakh/year under section 112A.
• Advance Tax Payment: Pay your advance tax timely to avoid interest under section 234B & 234C for delayed payments.

Income Tax Return (ITR) Due Dates for A.Y.2025–26 corresponding to Financial Year (F.Y.) 2024–25 for various taxpayer categories:

Common Mistakes to Avoid While Filing ITR – For FY 2024–25 / AY 2025–26

• Wrong Selection of ITR Form : Using an incorrect form (e.g., ITR-1 instead of ITR-2 for capital gains) may lead to defective return notices u/s 139(9). Always check eligibility before choosing the ITR form.
• Missing the ITR Deadline : Leads to penalties and interest on tax dues.
• Ignoring TDS/TCS Credits : Not claiming them increases your tax liability.
• Not Disclosing All Bank Accounts : Must report all active and dormant accounts.
• Mismatch Between Form 26AS / AIS / TIS and ITR : Income reflected in Form 26AS, AIS (Annual Information Statement), and TIS (Taxpayer Information Summary) must match what you report. Missing FD interest, dividend, or TDS mismatch often triggers scrutiny.
• Overlooking Foreign Assets/Income : Must report foreign bank accounts, property, income.
• Not Reporting All Bank Accounts : It is mandatory to report all active bank accounts (including joint accounts) & Not disclosing may cause compliance issues.
• Omitting Interest Income : Many taxpayers forget to report Savings account interest (though up to INR 10,000 deductible u/s 80TTA), FD/RD interest & Interest on bonds/NSCs.
• Wrong Claim of Deductions/Exemptions: Claiming deductions (like 80C, 80D, 24(b)) without supporting proofs & Claiming HRA, LTA, or 80G donations incorrectly.
• Not Verifying ITR : Filing is incomplete without verification via Aadhaar OTP, Net Banking, EVC, or ITR-V.
• Not Disclosing Capital Gains : Sale of shares, mutual funds, property, or even crypto must be reported & Many taxpayers miss reporting small gains/losses, leading to notices.
• Failure to Report Foreign Assets & Income : NRIs and residents with foreign income/assets must disclose under Schedule FA. & Non-disclosure can lead to penalty under the Black Money Act.
• Not Reconciling TDS Credits : Claiming excess TDS than reflected in 26AS/AIS → refund rejection & Always verify before claiming.
• Wrong ITR Form : Using the wrong form can cause rejection or scrutiny.
• Reporting Incorrect Income : Mismatches in salary, interest, capital gains can trigger notices.
• Errors in Claiming Deductions : Mistakes in Section 80C, 80D, 80E claims.
• Not E-verifying ITR : Filing is incomplete without e-verification (Aadhaar OTP, net banking, DSC, or ITR-V signed and sent to CPC within 30 days) & Unverified ITR = treated as not filed.
• Incorrect Bank Details : Wrong IFSC or account number delays refund processing & Always double-check before submission.
• Missing the Due Date : Filing after due date = late fees (INR 1,000/INR 5,000 u/s 234F), loss of carry-forward of certain losses, and interest u/s 234A/B/C.
• Not Matching Tax Paid vs. Tax Liability : Reconcile advance tax, self-assessment tax, TDS.
• Errors in Bank Details : Wrong account number or IFSC delays refunds.
• Not Disclosing Exempt Income : Agricultural income, PPF interest, or maturity proceeds of LIC (exempt u/s 10) must still be reported under “Exempt Income”.
• Ignoring Clubbing of Income : Income of spouse/minor child from assets gifted must be clubbed with taxpayer’s income u/s 64.
• Failing to Report Capital Gains :Must report sale of property, shares, mutual funds.

Quick Tips for Error-Free ITR Filing- Tips to Avoid Mistakes

• Cross-check Form 16, 26AS, AIS before filing
• Keep documents & proofs ready
• Use online ITR utility or professional help for complex cases
• Download AIS & 26AS and reconcile before filing.
• Cross-check Form 16 vs. ITR entries.
• Keep proof of deductions & exemptions handy.
• Prefer filing well before due date to avoid last-minute errors.

ITR Due Dates for A.Y. 2025-26 (F.Y. 2024-25)

Taxpayer Category	Original Due Date	Revised Return Due Date	Belated Return Due Date
A. Company	31/10/2025	31/12/2025	31/12/2025
B. Other than Company (where audit is applicable)	31/10/2025	31/12/2025	31/12/2025
C. Partner of Firm (where audit is applicable)	31/10/2025	31/12/2025	31/12/2025
D. Transfer Pricing (Section 92E)	30/11/2025	31/12/2025	31/12/2025
Other than A/B/C/D (Individuals & Non-Audit Cases)	31/07/2025	31/12/2025	31/12/2025

Key Notes:

• Belated and Revised Returns must be filed by 31st December 2025, regardless of the original due date.
• Audit applicability extends the original due date to 31st October 2025.
• Transfer Pricing cases under Section 92E have an extended deadline of 30th November 2025.