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As the deadline for filing Income Tax Return (ITR) for the financial year 2024–25 approaches, it's crucial for taxpayers to follow the right procedure to avoid penalties, rejections, or unnecessary delays. The last date to file your ITR is July 31, 2025. While it may seem routine, even minor mistakes can lead to hefty consequences, including fines and notices from the Income Tax Department.

Here's a detailed guide outlining the key precautions to take while filing your ITR this year.

🗓️ 1. Don’t Wait Until the Last Moment

One of the most common mistakes is delaying the ITR filing until the final few days before the deadline. Rushing at the last minute increases the chances of errors like:

• Entering incorrect figures

• Choosing the wrong ITR form

• Forgetting to attach necessary details

📌 Tip: File early to get enough time to review your return and correct errors, if any.

✅ 2. Choose the Correct ITR Form

The Income Tax Department has issued 7 different types of ITR forms (ITR-1 to ITR-7) based on income sources, residential status, and taxpayer type (individual, HUF, company, etc.).

❌ Wrong form = Invalid return, and you’ll have to file again.

🔐 3. Mandatory Return Verification

Filing your return isn't complete unless you verify it within 30 days. Many taxpayers skip this step, making their return invalid.

🛠️ Ways to Verify Your ITR:

• Using OTP via Aadhaar-linked mobile

• Through net banking

• Demat account verification

• Bank account EVC

• Sending a signed ITR-V form to CPC, Bengaluru

📌 Unverified returns are treated as not filed.

📄 4. Cross-check Pre-filled Details

The income tax portal auto-fills many fields using your PAN, Aadhaar, bank details, and TDS information. Still, you must:

• Cross-check all the values, especially income from interest, salary, capital gains, etc.

• Match Form 26AS and AIS (Annual Information Statement) with your documents

⚠️ Discrepancies could trigger scrutiny notices or incorrect tax liability.

💰 5. Don’t Hide Any Income

Some people skip declaring side income such as:

• Freelance payments

• Interest from fixed deposits

• Rental income

• Capital gains from stocks or crypto

🔍 The Income Tax Department has systems to track unreported income. Under-reporting can lead to penalties up to 200% of the tax due.

💳 6. Check for Deductions and Tax Credits

Before submitting your return, ensure you're claiming eligible deductions under:

• Section 80C – LIC, PPF, EPF, tuition fees, etc.

• Section 80D – Health insurance premiums

• Section 80G – Donations

• Tax paid/TDS – Mention credits from Form 16 and Form 26AS

📝 Claim all applicable deductions to reduce your taxable income.

⚠️ 7. Be Cautious of Penalty and Interest

If you file after July 31, you could be charged:

• ₹5,000 late filing fee under Section 234F

• Interest under Section 234A on unpaid taxes

• Loss of opportunity to carry forward certain losses

📢 Summary: ITR Filing Do’s and Don’ts (2025)

🧾 Final Word

Filing your Income Tax Return accurately and on time is both a responsibility and a smart financial move. Avoid common pitfalls and stay updated with ITR rules to stay compliant and avoid penalties. If unsure, consult a tax advisor or use a trusted online filing platform.