With the conclusion of financial year 2024–25, it is time to consolidate all the financial transactions for the period for accurate financial reporting. Indian taxpayers are legally required to file income tax returns to ensure that their income, deductions and tax liabilities are correctly reported. The deadline to report ITR is July 31, unless extended by the government.

Filing ITR can be a complicated process, particularly for first timers or those with multiple income sources. The process can be overwhelming as it includes compliance with various forms, and complex tax rules.

For a smooth, uninterrupted ITR filing process, it is important to keep track of some of the basic steps, that can prevent common mistakes:

  • Incorrect Personal Details: Taxpayers should always confirm their name, PAN, address, and bank account details, among other details. This helps to ensure that their ITR does not face any rejection or delays by the tax officials.

  • Missing Income Sources: It is mandatory to report all the income sources while filing ITR for a particular financial year. If the taxpayers are confused about certain income and its tax liabilities, they must consult professionals to avoid any discrepancy.

  • Incorrect Tax Deductions: The taxation laws in India offer several provisions, which allow for deductions to reduce one’s taxable income. Hence, taxpayers should make use of these provisions by claiming all eligible deductions such as Section 80C, 80D. This will help them avoid higher tax liabilities.

  • Wrong Tax Calculation: India follows two income tax systems: old tax regime and new tax regime. So, it is important to figure out which one suits your needs. Both tax regimes offer different incentives to taxpayers. Selecting the right regime and understanding the tax slabs correctly is important for accurate reporting.

  • Ignoring Form 26AS: Many individuals overlook Form 26AS, which is available on the income tax portal. This form contains a consolidated record of taxes deducted, taxes collected and advance tax payments made. Reviewing Form 26AS helps ensure that all reported income and taxes match official records.

. Read more on Personal Finance by NDTV Profit.Filing ITR can be a complicated process, particularly for first timers or those with multiple income sources.  Read MorePersonal Finance 

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