The deadline for filing Income Tax Returns (ITR) is fast approaching i.e. September 15. If you have not filed the income tax return for Assessment Year 2025-26 yet, now is the time to take action to avoid any notice from Income Tax Department. Many taxpayers hurry at the last moment and end up making avoidable mistakes, especially when it is related to income from Capital Gains.
Wrong classification of capital gains, ignoring settled provisions of Income Tax, entering wrong bank details can easily trigger an income tax notice. Here are steps that can help you to file income tax returns correctly and you can avoid trouble;
Step 1: Keep Ready Essential Documents
Before you start, make sure you have:
- Form 16, Form 26AS and the Annual Information Statement (AIS)
- Bank account statements
- Interest certificates
- Proof of tax-saving investments i.e. Sections 80C, 80D, 80G, etc.
- PAN, Aadhaar, and updated bank details
- Your Tax P&L details received or downloaded from equity brokers
Businessmen, professionals and landlords should be extra careful while reporting income and expenses.
Step 2: Match AIS & Form 26AS Data
- Cross-check income details with Form 26AS and AIS.
- Verify TDS, advance tax, self-assessment tax, and income reported by employers and banks.
- Correct mismatches early to avoid last-minute errors.
Step 3: Select the Right ITR Form
Selecting the wrong ITR form can delay processing. Here’s a quick guide:
- ITR-1 (Sahaj): Salary, pension, one house property and interest income (up to Rs. 50 lakh).
- ITR-2: Capital gains, multiple properties, foreign income, no business income.
- ITR-3: Business/professional income (freelancers, traders etc.).
- ITR-4 (Sugam): Presumptive income and taxes thereon for small businesses and professionals.
- ITR-5/6/7: Firms, LLPs, companies and trusts.
Step 4: Verify Return with Aadhaar OTP
Last and Most important ITR must be verified within 30 days of filing. Options include:
- Aadhaar OTP
- Net banking
- Digital signature
- Demat account OTP
Failure to verify the return means your return would be treated as filed and accordingly your return will not processed.
Step 5: Watch Out for Common Mistakes
- Incorrect bank details – Refund may get delayed or fail.
- Deduction errors – Double-claiming under Section 80C or not fulfilling conditions under Section 24(b).
- Misreporting capital gains –
- Confusing short term and long term gains
- Ignoring provisions for equity shares
- Reporting sale proceeds instead of net gains
Step 6: File your Income Tax Returns on Time
- Last date of filing income tax return is September 15, 2025.
- Late filing may attract interest, late fees and loss of exemptions which is eligible for claim if return is filed on time.
- However if you fail to file return on time, you can file a belated return acceptable till December 31, 2025 with penalties.
Special Tip:
- Always pre-validate your bank account through the e-filing portal
- Double check pre-filled data before submission of your income tax return.
Final Thoughts
Filing of income tax return from efiling portal is quite easy as most of the data is fetched by the portal automatically. Further, filing your Income tax return is not just about meeting a deadline, it is about avoiding notices of income tax department, interest and penalties. A small attention to detail can save you big trouble in future.
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