ITR Filing Not So Simple Anymore: 10 Mistakes That Can Trigger Tax Notices

ITR Filing Not So Simple Anymore: 10 Mistakes That Can Trigger Tax Notices

INTRODUCTION

Accuracy in ITR filing is very important; otherwise, you may face penalties, Notices, and interest from the Income Tax Department. As your books might be finalised or about to be.

Hence its very crucial to finalise the books in a timely manner to meet deadlines. If you want to safeguard yourself & to take proactive actions, then this article is for you.

DUE DATES

Sr.	Taxpayer Category	Applicable ITR Form(s)	Due Date	Remarks
1	Salaried Individuals, Pensioners & Small Investors (No business/profession income)	ITR-1, ITR-2	31st July 2026
2	Individuals / HUF with Business or Profession Income (Non-Audit Cases)	ITR-3, ITR-4	31st August 2026	New deadline from AY 2026-27 as per Budget 2026 (Earlier: 31st July)
3	Businesses / Professionals requiring Tax Audit u/s 44AB (Companies, Firms, etc.)	ITR-3, ITR-5, ITR-6	31st October 2026	Turnover > Rs 1 Cr (business) or > Rs 50 L (profession)
4	Businesses with International / Specified Domestic Transactions (Transfer Pricing Cases)	ITR-3, ITR-5, ITR-6	30th November 2026	Tax Audit Report due: 31st October 2026

Due Date for belated/ revised Returns

Sr.	Return Type	Section	Last Date	Key Points
1	Belated Return (Filed after original due date)	Sec 139(4)	31st December 2026	• Late fee: Rs 1,000 (income ≤ Rs 5L) or Rs 5,000 • Interest u/s 234A @ 1% per month • Loss carry-forward NOT allowed
2	Revised Return (Correcting errors in filed return)	Sec 139(5)	31st December 2026 (without late fees) 31st March 2027 (with late fees u/s 234I)	• No penalty for filing revised return • Can be filed even if the original was belated • New: Revised return deadline extended to 31 Mar 2027 as per Budget 2026

MISTAKES TO AVOID

1. Incorrect Personal Information:

• Ensure that your PAN and Aadhaar are linked; otherwise, it causes an inactive PAN, which will prevent ITR filing, stall processing, and lead to higher TDS deductions.

1. Wrong ITR Form:

• Select the correct ITR forms as per your income sources and category (Individual, Business, etc.)
• Wrong selection of the ITR form may make your return defective or invalid.

1. Reporting Complete Income:

• Reconcile all your incomes with AIS and TIS to avoid underreporting.

1. Incorrect Claim of Deductions & Exemptions:

• Verify all supporting documents & proofs for your deductions like 80C, 80D, HRA, etc. If your supporting document does not match the deduction amount, then it causes additional demands.

1. Bank Account:

• All active bank accounts must be reported. Missing even one account can cause refund failures or processing delays.

1. Not Reconciling with Form 26AS & AIS

• Many taxpayers fill in TDS details manually without cross-checking with Form 26AS and AIS. Hence, a mismatch will trigger notices automatically.

1. Wrong Tax Regime Selection

• The portal defaults to the new regime. If you want old regime deductions, you must manually opt out and file Form 10-IEA before the due date; otherwise, you will lose all your deductions.

1. Skipping Deduction Details

• Under the old regime, Section 80C, 80D, and HRA claims now require specific details like policy numbers, insurer names, landlord PAN, etc. Vague & incorrect entries may get rejected.

1. Not Carrying Forward Losses Correctly

• Capital losses and business losses can only be carried forward if filed before the original due date. A belated return loses this benefit entirely

1. Ignoring the New Mandatory Fields for AY 2026-27

• The new Investment disclosure and mandatory Bank Balance fields in Financial Particulars (especially for ITR-4) are not optional – leaving them blank invites scrutiny.