Mistakes to avoid while filing Income Tax return

Mistakes that Income Tax Filers

Filing tax is every person’s moral duty. It shows how responsible they are. As the internet has changed the way we avail services and more and more services are becoming online, we are able to do several things from comforts of our homes. And filing income tax is one such thing we often do online. While doing things on our own we are tend to make certain mistakes that make more harm than good. But as they say, the wise learn from other’s mistakes here we list common mistakes while e-filing and how to avoid them.

Mistake 1:  Not reporting capital gains

Many people do not report about capital gains. They fail to disclose sale of assets like property, gold or silver and earn capital gains. It is absolutely wrong. Disclosure of everything while e-filing income tax is mandatory and must be adequate

Solution: – One must identify and disclose if they have any long and short term capital gains. In case of capital gains we must use ITR-2 rather than ITR-1.

Mistake 2: House property taxes not paid

There is a misconception among many people that as there is no income from more than one residential property. So no Income means no income tax. This is a big mistake people are doing.

Solution:- Income tax act 1961 states that you are bound to pay tax if you own multiple houses whether you are earning income from that or not, whether it is occupied or not it doesn’t matter.

Mistake 3: Disclosing wrong salary figure in tax returns

The first question arouse in the mind of first time ITR fillers is “what salary figure should be shown?” They are in the confusion that what figures should be mentioned? And in this dilemma they disclose wrong figures

Solution: – Please note that ‘income from salary’ is not a big deal. It is all what has been given under ‘Income chargeable under head salaries’ in form 16.

Mistake 4: Choosing the wrong form

Indeed there are seven e-forms, but only four are available for individuals. It is the duty of the person to choose the right form. If a wrong form is filed then return will be rendered invalid and defective. The software will select the form on the basis of data stored in system.

Solution: – Everyone should be aware of changes made in the forms.

Mistake 5: Books of accounts not prepared

There are many people who do not prepare books of accounts specially the agents earning income in top companies for filing of income tax return. They will charge Rs 100-300 for filing of ITR. They do not prepare books of accounts.

Solution: – Report your side income from consulting, selling products, affiliate income for income tax return filing.

Mistake 6: Calculation of TDS Details

Every salaried individual is eager to know the amount of tax deducted. The tax credit for TDS can be claimed in the tax return. Calculation of TDS details are left

Solution: – It is that money which you earned by hard work. Why should you leave it on the IT department’s table? Pay what is legally due and save the rest of your money.

Mistake 7: Mistakes in personal data

Personal data mistakes are most common in filing income tax. When you are e-filing the tax returns, you need to put in personal details like mailing address, date of birth, email and mobile number. Give all details correct.

SOLUTION: – All process of e-filing goes through e-mail. So ensure to provide the active mail id. And seniors should provide the correct date of birth.

Mistake 8:  Missed the deadline

Sometimes people miss the deadline because they forget the time period of filing ITR. It can be accepted as filed when you send signed copy of ITR-v to the office

Solution: – Sending signed copy just take few minutes. Then why to wait for 2 months? Do it as early as possible

Mistake 9: Miscalculations in ITR

There can be a miscalculation in estimation of ITR if not calculated properly.  You will get immediate notice from the IT department if there are wrong figures and it can reduce your tax refund.

Solution: – To calculate your income tax return amount correctly, you can use our income tax calculator for free. It will be most appropriate option if you are not good at math.

Mistake 10: Misspelled or different names

ITR is all about numbers, but sometimes spellings or words mean too. Some people name like taxpayer, her wife and children names do not match identification of social security council. Problem occurs where girls change name or surnames after marriage.

Solution: – Use correct name as mentioned in documents, else it will kick out or slow down processing of tax return.

In nutshell, don’t do the above mistakes mentioned else it can slow down the filing and taxation process and if it happens go through the solutions provided.


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  2. Thanks this blog has really helped me alot. This really helps and tells a process that is required to fill up an Income tax return. This blog tell us step by step how we should fill taxes and yes it is also easy to understand. Each and every details have been mentioned in simple and clear language.
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  3. I am salaried and have a loss in short-term capital gain and have a very small amount of 600 from affiliate marketing for which TDS has been deducted as well. Can I file ITR-2 or I have to go for 3 or 4? If I can file ITR-2 under which head in schedule OS, the affiliate income will be shown?


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