5 Common ITR Filing Mistakes That Can Trigger an Income Tax Notice

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The last date for filing Income Tax Return 2025 is 15 September 2025. Many taxpayers have not yet filed ITR. If you are also among them, then know which 5 mistakes you should avoid while filing ITR. So that action by the Income Tax Department can be avoided.

If you make mistakes in ITR, then not only will you come under the scrutiny of the Income Tax Department, but you may also have to pay a heavy fine along with punishment.

Lakhs of cases identified by Income Tax Department

The last date for filing ITR is approaching, in such a situation, the department has identified about 1.5 lakh cases for detailed investigation under section 143 (2). Your responsibility does not end just by filing ITR. If you have made mistakes in the income tax return, then notices can be issued by the Income Tax Department.

Let us know about 5 such mistakes which if done while filing income tax return, then you will come under the eyes of the Income Tax Department-

1. Matching of documents

You have filed your ITR, but if there is a difference in the TDS details and the income details declared by you, then it can be investigated by the Income Tax Department. Such problems are generally common among salaried and freelancers. Therefore, while filing income tax return, match the declared income with your TDS details in advance.

2. False claims in greed for higher refund

If you are also among those taxpayers who give wrong information in the income tax return to get more refund, then the Income Tax Department can take action against you. To avoid such problems, it is better to file all the correct information. If the taxpayer declares less income, then a penalty of 50% can be imposed on him. On the other hand, a penalty of 200% may have to be paid under section 270A for submitting fake documents.

3. Income Tax Department’s eye on high value transactions

High value transactions are monitored by the Income Tax Department. If you do not include details of such major activities in your ITR, then you may get into trouble.

4. Avoid disclosing all sources of income

Many taxpayers do not include information about all the sources of income earned in their income tax returns. Due to which they can also come under the radar of the Income Tax Department. For example, if you are a salaried person and have made capital gains in the financial year, have received income from rent, have received bank interest or have earned profit through shares or crypto, then all such income will have to be included in your income tax return. If you do not include the details of income earned from all sources in your ITR, then you may have to pay a penalty on it later. Along with this, you may also have to face questions from the Income Tax Department.

5. Sudden decrease in income

In many cases, if the taxpayer’s income suddenly decreases compared to the previous year, the Income Tax Department may ask for an explanation. In response to this, the taxpayer will have to submit the necessary documents.

If you are also thinking of filing income tax return, then enter the correct information of all your documents. If necessary, you can consult a financial advisor. So that your income tax return is filed without any mistakes and you can avoid action by the Income Tax Department.

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