Income Tax Return 2025: Want to Avoid Penalty? Follow These 5 Key Rules

With the ITR filing season for Assessment Year 2025–26 underway, many taxpayers are busy collecting documents like salary slips, interest certificates, and dividend statements. However, tax experts warn that even minor mistakes during filing can result in penalties, delays, or scrutiny by the tax department.

To ensure a hassle-free ITR filing experience, here are 5 crucial things to keep in mind:

✅ 1. File Your ITR Before the Deadline

• Deadline for FY 2024–25: 15 September 2025

• Filing after this date can attract a penalty of up to ₹10,000

• Late filing may also disqualify you from carrying forward losses like capital gains or business losses.

📌 Tip: Don’t wait till the last minute. File early to avoid server issues and stress.

✅ 2. Choose the Correct ITR Form

Each taxpayer category has a specific ITR form:

• ITR-1: For salaried individuals with income up to ₹50 lakh

• ITR-2: For capital gains or foreign income

• ITR-3/4: For business/professional income

📌 Tip: Filing with the wrong form can lead to rejection or tax notice. Always check the latest guidelines issued for the current year.

✅ 3. E-Verify Your Return Within 120 Days

Filing ITR is not enough—it must be e-verified within 120 days to be valid. Without verification, your return will be treated as not filed.

Methods to e-verify:

• Aadhaar-linked OTP

• Net banking

• Demat account login

• Or manually sending a signed ITR-V to CPC, Bengaluru

📌 Tip: Prefer online verification methods—they’re instant and reliable.

✅ 4. Disclose All Income Sources

One of the common errors is not reporting:

• Interest from FDs and savings accounts

• Rental income

• Freelance or side-job earnings

• Capital gains (stocks, crypto, mutual funds)

📌 Warning: Since most financial data is linked to your PAN, mismatches can trigger scrutiny or penalties.

✅ 5. Cross-Check Form 16 and Form 26AS

Form 16 (from your employer) and Form 26AS (available on the tax portal) should match. These reflect:

• Salary and TDS details

• Advance tax paid

• Interest income and more

📌 Tip: Always cross-verify these documents before submission.
If you discover an error later, you can file a correction under Section 154(1) for factual or clerical mistakes.

🔎 Summary: How to Stay Penalty-Free This Tax Season Mistake Consequence Solution

Late filing	Up to ₹10,000 penalty	File before 15 Sept 2025
Wrong form	Return may get rejected	Choose correct ITR form
Not e-verifying	ITR treated as invalid	Verify within 120 days
Hiding income	Scrutiny or penalty	Disclose all income
Form mismatch	Notice or rejection	Reconcile Form 16 & 26AS

📢 Pro Tip: If you’re unsure, use the income tax portal’s pre-filled data, or consult a tax expert to avoid costly mistakes.