15 Common Tax Filing Mistakes to Avoid in 2026
It is that time of the year again. The Income Tax Department has opened the ITR e-filing portal, your employer has issued Form 16, and your phone is buzzing with reminders. But before you rush to click Submit, stop and read this.
Every year, lakhs of taxpayers in India — including many in Pune — file their ITR with small mistakes that lead to big problems: tax notices, wrong refunds, penalties, and sometimes even scrutiny from the department. The worst part? Most of these Tax filing mistakes are completely avoidable.
At Startup portal Business Services, our founders Nikhil Rajarshi and Govind S. Jethani bring over 8+ years of hands-on experience in ITR e-filing in Pune. They have helped hundreds of salaried employees, freelancers, small business owners, and senior citizens file their returns correctly — and without the anxiety that usually comes with tax season. In this blog, they share the 15 most common ITR filing mistakes they see every year, and exactly how you can avoid them in 2026.
The 15 Tax Filing Mistakes That Get Indian Taxpayers in Trouble:
1. Choosing the Wrong ITR Form:
This is the most basic mistake, and it happens more than you think. ITR-1 is for salaried individuals with income up to ₹50 lakh. ITR-2 is for those with capital gains or multiple house properties. ITR-3 is for business or profession income. ITR-4 is for presumptive taxation.
If you have sold mutual funds or shares this year, you cannot use ITR-1 — even if your salary is below ₹50 lakh. Filing the wrong form means your return is treated as defective by the department.
✔ Fix: Check your income sources first — salary, capital gains, rental income, freelance — and then choose the correct form. When in doubt, consult an expert for ITR e-filing in Pune.
2. Not Reporting All Income Sources:
Many taxpayers only report their salary and forget everything else. Interest from savings accounts, fixed deposits, recurring deposits, PPF (above the exempt limit), rental income from a second property, freelance payments, dividend income — all of this must be declared.
The Income Tax Department now receives data from banks, mutual funds, and other financial institutions automatically through the Annual Information Statement (AIS). If your AIS shows income you did not report, you will get a notice.
✔ Fix: Download your AIS and Form 26AS from the IT portal before filing. Match every entry with what you plan to declare in your ITR.
3. NSC Interest Mismatch in ITR Filing:
This is one of the most searched Tax Filing mistakes — and for good reason. National Savings Certificate (NSC) interest is taxable every year on an accrual basis, not just when it matures. But many taxpayers either forget to declare it, or only declare it in the final maturity year.
This creates a mismatch in your ITR filing. The department’s systems flag it, and you end up receiving a notice asking you to explain the discrepancy.
✔ Fix: Declare NSC interest every year, not just at maturity. You can also claim the accrued interest as a deduction under Section 80C each year (since it is treated as re-invested). Keep the NSC passbook or certificate handy while filing.
4. Mismatch Between Form 16 and Form 26AS / AIS:
Your employer deducts TDS and deposits it with the government. This appears in Form 26AS. Sometimes there is a mismatch — the TDS amount in your Form 16 is different from what appears in 26AS or AIS.
If you file based on Form 16 without checking 26AS, and there is a mismatch, the department will not credit the full TDS to your account. You may end up with a smaller refund or an unexpected tax demand.
✔ Fix: Always cross-check Form 16, Form 26AS, and AIS before you start filing. If there is a mismatch, ask your employer or the deductor to correct it first.
5. Missing the ITR Filing Deadline:
The standard deadline for ITR e-filing in India is 31 July for salaried individuals and 31 August non-audit cases. Missing this date means you can only file a belated return by 31 December — with a late fee of ₹1,000 (income up to ₹5 lakh) or ₹5,000 (above ₹5 lakh).
More importantly, if you have capital losses, you lose the right to carry them forward if you miss the original deadline. This is a significant financial loss that many taxpayers in Pune do not realise until it is too late.
✔ Fix: Set a reminder for July 15 every year. Start collecting documents — Form 16, AIS, bank statements — at least two weeks before the deadline.
6. Not Verifying the ITR After Filing:
Filing is not complete until you verify your return. Many people file their ITR and think the job is done — but without e-verification (Aadhaar OTP, net banking, or DEMAT account), your return is treated as not filed at all.
You have 30 days from the date of filing to verify. If you miss this window, you need to send a physical signed copy to CPC Bengaluru — which is slow and painful.
✔ Fix: Verify your ITR immediately after filing using Aadhaar OTP — it takes less than two minutes.
7. Entering the Wrong Bank Account Details:
Your tax refund goes directly to the bank account you mention in your ITR. A wrong IFSC code, wrong account number, or an account that is not pre-validated on the portal means your refund will fail or go to the wrong account.
✔ Fix: Pre-validate your bank account on the Income Tax portal before filing. Also make sure the account is linked to your PAN.
8. Not Declaring Foreign Assets or Income:
If you hold foreign bank accounts, own property abroad, or have income from outside India, you must declare it in Schedule FA (Foreign Assets) of your ITR. This applies to NRIs returning to India and residents with overseas investments too.
Non-disclosure of foreign assets attracts stringent penalties under the Black Money Act — up to ₹10 lakh per undisclosed asset, along with possible prosecution.
✔ Fix: If you have any foreign assets or income — even a PayPal account with foreign earnings — declare it. Always.
9. Claiming Wrong Deductions Under 80C:
Section 80C gives you a deduction of up to ₹1.5 lakh, but not everything qualifies. Common mistakes: claiming LIC premium paid for a sibling or friend (only for self, spouse, children), claiming tuition fees for more than two children, or double-counting EPF contributions that are already captured in Form 16.
✔ Fix: Read the eligibility criteria for each 80C component carefully. Cross-check with Form 16 Part B before claiming any deduction manually.
10. Not Reporting Capital Gains from Mutual Funds and Stocks:
With zero-commission apps making investing easy, many taxpayers in Pune now have mutual fund and stock investments. But Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) above ₹1 lakh are taxable — and must be reported even if no TDS was deducted.
The AIS now shows all your mutual fund redemptions and stock sales. If you do not report them, expect a scrutiny notice.
✔ Fix: Download your capital gains statement from your broker or MF platform (Zerodha, Groww, CAMS, KFintech) before filing. Use ITR-2 or ITR-3 as applicable.
11. Ignoring Pre-filled Data Without Checking It:
The IT portal now pre-fills a lot of data — salary, TDS, dividends, interest. Many taxpayers accept this data as-is and click submit. But pre-filled data is not always accurate. Employers sometimes update TDS details late, or bank interest figures may be missing.
✔ Fix: Treat pre-filled data as a starting point, not the final answer. Verify every figure against your own documents before submitting.
12. Not Claiming HRA Correctly:
House Rent Allowance (HRA) is one of the most common exemptions for salaried taxpayers, but it is also one of the most misused. You cannot claim HRA if you are living in your own house. You cannot claim HRA and a home loan interest deduction for the same property in the same city (in most cases). And you must have actual rent receipts if the annual rent exceeds ₹1 lakh.
✔ Fix: Maintain rent receipts and a rent agreement. If you pay rent to parents, a proper agreement and bank transfer (not cash) is needed to satisfy department scrutiny.
13. Skipping the New vs Old Tax Regime Decision:
From AY 2024-25 onwards, the New Tax Regime is the default. If you want to opt for the Old Regime (to claim HRA, 80C, 80D deductions etc.), you must actively choose it while filing. Many salaried employees miss this and end up paying more tax than necessary.
✔ Fix: Do a quick calculation: total deductions you can claim vs the tax saving under the New Regime. Choose what saves you more money. Your CA or ITR e-filing expert in Pune can help you model both scenarios.
14. Not Disclosing Income from Freelance or Part-Time Work:
The gig economy is booming — design work, content writing, tutoring, consulting, YouTube ad revenue — all of this is taxable income. Many people assume that because TDS was not deducted, they do not need to report it. That is incorrect.
Payments above ₹50,000 to professionals attract TDS under Section 194J. But even if the payer did not deduct TDS, the income is still yours to declare.
✔ Fix: Report all freelance income under the head Profits and Gains from Business or Profession. You can claim legitimate business expenses (internet, equipment, subscriptions) to reduce your taxable income.
15. Filing Without Professional Help When Income is Complex:
This is not really a mistake in the traditional sense — it is more of a risk many taxpayers take. If your income is simple (one salary, one employer, no investments), self-filing is fine. But if you have multiple income sources, capital gains, rental income, foreign assets, or you are a freelancer or small business owner — filing without expert guidance often leads to mistakes that cost you more than the professional fee would have.
✔ Fix: For ITR e-filing in Pune, working with experienced professionals like Nikhil Rajarshi and Govind S. Jethani ensures that every rupee of deduction is claimed correctly, every income source is declared, and your return is filed without errors.
How Our Experts Can Help You File a Clean ITR?
At Startup portal Business Services, we have spent over 8 years handling ITR e-filing in Pune for a wide range of clients — salaried professionals in IT and manufacturing, doctors and lawyers, freelancers, small retailers, and senior citizens with pension and investment income.
Here is what we do differently:
- Full AIS and Form 26AS review before filing — we catch mismatches before they become notices
- NSC, FD, RD, and all interest income correctly mapped and declared
- Capital gains calculated accurately using actual purchase cost and indexed values
- New vs Old Regime comparison done for every client before filing
- All deductions verified with documents — no guesswork, no over-claiming
- Returns filed and verified within 24 to 48 hours in most cases
- Post-filing support: if you receive any notice or query from the department, we handle it
We are based in Pune and understand the specific filing patterns, TDS structures, and compliance needs of taxpayers in this city — from Kothrud and Baner to Viman Nagar and Hadapsar.
Quick Checklist Before You File Your ITR in 2026:
Before you begin: Collect these documents first.
- Form 16 from your employer (Part A and Part B)
- AIS (Annual Information Statement) from the IT portal
- Form 26AS
- Bank statements and interest certificates from all accounts
- FD, RD, NSC, PPF and other investment details
- Capital gains statements from Zerodha, Groww, CAMS, or your broker
- Home loan certificate (if applicable)
- Rent receipts and agreement (if claiming HRA)
- Premium receipts for LIC, health insurance, NPS
- Freelance invoices and expense records (if applicable)
Deadline reminder: 31 July 2026 is the last date to file ITR without a late fee for most taxpayers. Do not wait until the last week.
Conclusion: A Small Mistake in ITR Can Cost a Lot
ITR filing is not just a compliance task — it is a financial decision. A wrong form, a missed income, an NSC interest mismatch, or a forgotten capital gain can lead to notices, penalties, and unwanted stress long after the deadline has passed.
The 15 mistakes listed above are not rare edge cases. They are the exact errors our team at Startup portal Business Services encounters every single filing season, across clients of all income levels. Avoiding them takes some preparation — and in complex cases, expert guidance.
If you are looking for reliable, transparent, and affordable ITR e-filing in Pune, reach out to Nikhil Rajarshi and Govind S. Jethani today. With 8+ years of experience and a genuine commitment to helping you stay compliant, we make tax filing simple, accurate, and stress-free.
Get your ITR filed correctly this year.
Contact us for ITR e-filing in Pune — fast, accurate, and affordable.