Avoid These 7 ITR Filing Mistakes in 2025 | Budget 2025 Tax Updates Explained

Introduction

Filing your Income Tax Return (ITR) correctly is more important than ever in 2025. With new tax rules introduced in Budget 2025—such as zero tax up to ₹12.75 lakh and extended filing timelines—many taxpayers are rushing to file. But small mistakes can delay refunds, invite penalties, or even lead to scrutiny notices.

In this guide, we’ll cover:

• The major Budget 2025 updates every taxpayer should know.

• The 7 most common ITR filing mistakes in 2025 and how to avoid them.

• A step-by-step filing checklist to ensure smooth filing.

Budget 2025 Highlights for Taxpayers

The Union Budget 2025 has brought several taxpayer-friendly changes:

Change Old Rule New Rule (Budget 2025)Zero Tax Slab₹7.5 lakh (new regime)₹12.75 lakh Standard Deduction ₹50,000 ₹75,000 Updated Return Filing Window 2 years 3 years TDS/TCS Rationalization Complex slabs Simplified structure

👉 What this means for you: Most salaried taxpayers can save more under the new regime, but you must ensure correct filing to benefit.

7 Common ITR Filing Mistakes to Avoid in 2025

1. Entering Incorrect Personal or Bank Details

• Wrong PAN, Aadhaar, or IFSC codes can cause refund delays.
  ✅ Tip: Double-check personal details and use the pre-fill option.

2. Choosing the Wrong ITR Form

• Many salaried taxpayers confuse ITR-1 with ITR-2 (especially if they have capital gains or multiple properties).
  ✅ Tip: Use the Income Tax portal’s tool to find your correct ITR form.

3. Not Reconciling Form 26AS / AIS with ITR

• Your employer, bank, and brokers report income under TDS. Mismatches can trigger notices.
  ✅ Tip: Always cross-check with Form 26AS and AIS/TIS before filing.

4. Ignoring Portal Glitches

• Login errors, pre-fill failures, and submission errors are common. Filing at the last minute increases risks.
  ✅ Tip: File during non-peak hours (early morning or late evening).

5. Missing Deadlines & Miscalculating Penalties

• Even though Budget 2025 gives a longer window, late filing still attracts penalties.
  ✅ Tip: File before 31st July 2025 (unless extended).

6. Skipping E-Verification

• Filing is incomplete without EVC or Aadhaar OTP verification. Refunds will not be processed until then.
  ✅ Tip: Verify within 30 days of filing.

7. Failing to Claim Refunds or Carry Forward Losses

• Many taxpayers forget to claim eligible refunds or carry forward F&O trading losses.
  ✅ Tip: Review your income schedules carefully before submission.

Filing Checklist for AY 2025–26

✅ Keep PAN, Aadhaar, and bank details handy
✅ Download Form 26AS, AIS, and salary Form 16
✅ Choose the correct ITR form (ITR-1, ITR-2, etc.)
✅ Claim deductions, exemptions, and losses (if any)
✅ Submit and verify within 30 days

👉 Downloadable Infographic Idea: A visual step-by-step filing checklist (PAN → Form 16 → 26AS → Choose ITR → File → Verify → Refund).

Quick Guide: Filing ITR-1 for AY 2025–26

1. Visit Income Tax e-filing portal.

2. Login with PAN/Aadhaar.

3. Select AY 2025–26 and choose ITR-1.

4. Verify pre-filled data, add deductions.

5. Submit return and complete e-verification.

Tips for a Smooth Filing Experience

• File during off-peak hours.

• Clear browser cache or try incognito mode.

• Seek expert help if confused about tax regimes.

• Use free portals or consult with tax experts.

Conclusion

Filing ITR is no longer just about compliance—it’s about maximizing benefits under Budget 2025 and avoiding mistakes that can cost time and money. By staying alert, reconciling data, and verifying on time, you can ensure a hassle-free filing experience.

👉 Need expert help filing your ITR in 2025? Professional Duniya ensures error-free filing, maximizes your refund, and saves you from penalties.
📞 Contact us today to get your return filed before the deadline!

FAQs

Q1: Who needs to file ITR in 2025?
Anyone with income above the basic exemption limit (₹2.5 lakh under old regime, ₹12.75 lakh under new regime for zero-tax slab).

Q2: What happens if I file ITR late?
You may face penalties up to ₹5,000 and lose the benefit of carrying forward losses.

Q3: Can I revise my ITR?
Yes, revised returns can be filed within 3 years (extended under Budget 2025).