ITR filing due date 2025: Common mistakes to avoid in last-minute rush

The last day for ITR filing is upon us. Here’s a breakdown of frequent errors and how to avoid them in a last-minute rush to meet the deadline.

With the due date for filing income tax returns (ITR) upon us, millions of taxpayers are in a last-minute rush to complete their ITR filing before the deadline.

The ITR due date is 15 September 2025.(Pixabay)

While the filing process has become simpler, thanks to pre-filled forms and digital tools, common mistakes can still lead to penalties, refund delays, or scrutiny notices. Here’s a breakdown of frequent errors by different categories of taxpayers—and how to avoid them.

For Salaried Employees

Salaried taxpayers are the largest group of ITR filers, but they often overlook key details. The common mistakes are:

1. Relying only on Form 16: Many employees ignore income from savings interest, fixed deposits, or dividends. This causes mismatches with AIS/Form 26AS.
2. Not claiming HRA correctly: Forgetting to submit rent receipts to employers but still claiming HRA during filing can invite scrutiny.
3. Skipping deductions: Medical insurance (80D), NPS contributions (80CCD), and home loan interest (24B) are often missed.
4. Choosing wrong regime: Many salaried individuals stick with the Old Regime without comparing savings under the New Regime.

Fix: Double-check AIS/26AS, claim all deductions, and use the portal’s Old vs New regime comparison tool before final submission.

For Freelancers and Gig Workers

Freelancers, consultants, and gig economy workers face more complexity as income often comes from multiple sources. The common mistakes are:

1. Not reporting all income streams: Payments from international clients, digital platforms, and UPI-based transfers are tracked by AIS. Omitting them can trigger red flags.
2. Skipping expense claims: Many freelancers fail to deduct legitimate business expenses— laptops, internet, co-working spaces, software subscriptions—reducing taxable income unnecessarily.
3. Confusing ITR forms: Freelancers often incorrectly use ITR-1, while they should typically file ITR-3 (business/profession income).
4. Ignoring advance tax: Freelancers must pay advance tax in quarterly installments. Missing this invites interest under Sections 234B and 234C.

Fix: Use ITR-3, maintain invoices and expense receipts, and declare all income. Consult tax tools like Quicko that are freelancer-friendly.

For NRIs (Non-Resident Indians)

NRIs often assume they are exempt from Indian ITR filing—but that’s not always true. The common mistakes are:

1. Not filing despite taxable income in India: Rental income, bank deposits, or capital gains from property/stock sales require an ITR, even if you live abroad.
2. Confusing residential status: Many NRIs wrongly classify themselves as non-residents without applying the 182-day rule.
3. Double taxation concerns: Some NRIs fail to claim tax relief under the Double Tax Avoidance Agreement (DTAA).
4. Incorrect bank account use: Refunds cannot be credited to foreign bank accounts; NRIs must provide an NRO/NRE account.

Fix: Carefully determine residency status, declare all India-based income, and ensure PAN-linked bank accounts are updated for refunds.

From salaried workers forgetting small interest incomes, to freelancers misreporting expenses, to NRIs skipping mandatory filings—the risks of mistakes are high. The Income Tax Department’s systems now track income across banks, mutual funds, stock trades, and even digital wallets through AIS. The simplest way to avoid trouble is to declare all income, use the right ITR form, and file before 15 September—that is today.