Verify Your Personal Information
This may seem basic, but it's a common source of errors. Ensure your name, PAN, Aadhaar number, date of birth, and contact details are correct and match across all documents. Incorrect personal details, even a minor spelling mistake, can lead to your return
being marked as defective. Also, double-check that your bank account details, including the IFSC code, are accurate and that the account is pre-validated to ensure any potential refund is credited without delay.
Reconcile Form 16 with Form 26AS and AIS
Your Form 16, provided by your employer, is the starting point, not the final word. You must cross-verify the TDS (Tax Deducted at Source) amount mentioned in Form 16 with your Form 26AS and Annual Information Statement (AIS). Form 26AS is the official tax credit statement, and any mismatch means you might not get credit for taxes already paid. The AIS provides a comprehensive view of all financial transactions reported to the tax department. Reconciling these documents helps ensure you report all income accurately and claim the correct tax credits.
Report All Sources of Income
One of the most frequent mistakes is reporting only salary income. You must declare income from all sources. This includes interest from savings accounts and fixed deposits, dividend income, capital gains from stocks or mutual funds, and any rental income. Even if the income seems minor, it is tracked in your AIS, and failing to report it can trigger a notice from the Income Tax Department.
Choose the Correct ITR Form
Selecting the right ITR form is crucial. For most salaried individuals with an income up to ₹50 lakh from salary, one house property, and other sources (like interest), ITR-1 (Sahaj) is the correct form. However, if you have income from capital gains, own more than one house property, have foreign income or assets, or your total income exceeds ₹50 lakh, you will likely need to file ITR-2. Filing the wrong form can render your return defective.
Review Your Tax Regime Choice
For the Assessment Year 2026-27, the New Tax Regime is the default option. This regime offers lower tax rates and a standard deduction of ₹75,000 but disallows most traditional deductions. The Old Tax Regime allows you to claim deductions like those under Section 80C (up to ₹1.5 lakh for investments like EPF, PPF, ELSS), Section 80D (health insurance), and for home loan interest. Salaried employees without business income can switch between regimes each year. It's vital to compare your tax liability under both regimes based on your investments and exemptions before making a final choice.
Claim All Eligible Deductions Correctly
If you opt for the Old Tax Regime, ensure you are claiming every deduction you are eligible for, with valid proof. Common deductions include those for PPF, life insurance premiums, home loan principal repayment under Section 80C, health insurance premiums under 80D, and HRA if you live on rent. Do not miss the additional deduction of up to ₹50,000 for NPS contributions under Section 80CCD(1B). Claiming incorrect deductions or doing so without proof can lead to scrutiny.
Don't Forget to E-Verify
Simply submitting your ITR is not enough; the process is incomplete until it is verified. An unverified return is considered not filed. The easiest way to verify is electronically through Aadhaar OTP, net banking, or a digital signature. You have a limited time after filing to complete the verification process. Forgetting this final step is a common error that can result in your return being invalidated and may attract late filing fees.
