ITR Filing 2024: 7 Common Mistakes to Avoid for a Smooth Tax Refund

Filing your Income Tax Return (ITR) correctly helps you avoid issues, penalties, and communication from the Income Tax Department. Before ITR filing for AY 2024-25 gets underway, a lot of taxpayers end up in trouble because of simple errors that delay their tax refunds, give rise to further checking, or apply extra penalties.

In this comprehensive guide, we’ll highlight the 7 most common ITR filing mistakes and provide actionable solutions to ensure a quick tax refund and hassle-free compliance.

Why Accurate ITR Filing Matters in 2024?

The importance of correct ITR filing should be clear before we discuss the mistakes.

• Avoid Penalties: Make sure you don’t get fined by always filing your returns correctly and on time.
• Faster Refunds: It takes less time to get your refund when the return process is error-free.
• Loan & Visa Approvals: It’s necessary to submit ITR proof when seeking a loan or visa from banks and embassies.
• Carry Forward Losses: Only by filing returns can you use any losses from the prior year in subsequent times.
• Stay on Track: An imbalance in listing your income may result in officials checking your case.

Let’s now find out about the 7 most common ITR filing errors and what you can do to avoid them.

1. Choosing the Wrong ITR Form

The Income Tax Department has different ITR forms based on income sources and taxpayer categories. Selecting the wrong form can lead to rejection.

Which ITR Form Should You Use?

Common Error:

• Salaried individuals with stock market profits mistakenly filing ITR-1 instead of ITR-2.

Solution:

• Check the latest ITR forms for AY 2024-25 on the Income Tax e-filing portal.

2. 2. Not Reporting All Income Sources

Forgetting to include some essential details is common for many people paying taxes.

• • Interest income (Savings account, FD, RD)

• Dividends from stocks & mutual funds

• • Capital gains (Stocks, crypto, property sales)

• Freelance, gig economy, or part-time income

• Rental income from property

What Makes It Very Risky?

All relevant data comes from banks, brokers, employers as well as payment gateways (like PayPal & Razorpay) to the Income Tax Department. Failing to report all your income may cause these situations:

• Section 143(1) of the law calls for tax notices.

• The consequences of not revealing correct information

• An additional task of paying interest with tax

Solution:

• You can get Form 26AS and AIS (Annual Information Statement) by going to the tax portal.
• Review all your income sources before filing your income taxes.

3. Ignoring Tax Deductions & Exemptions

Many taxpayers miss out on tax-saving deductions, leading to higher tax liability.

Key Deductions to Claim:

• Section 80C (₹1.5 lakh) – PPF, ELSS, LIC, Home Loan Principal, NSC
• Section 80D (₹25,000–₹1 lakh) – Health insurance premiums
• HRA Exemption – If you live in a rented house
• Home Loan Interest (Section 24) – Up to ₹2 lakh deduction
• Section 80G – Donations to charities

Common Error:

• Not submitting rent receipts for HRA claims or investment proofs for 80C deductions.

Solution:

• Keep all investment receipts, insurance premium bills, and rent agreements handy.

4. Incorrect Bank Account Details

If the details you give are wrong, you could wait several months to receive your tax refund.

If Bank Details Are Wrong What Happens?

• After filling out a refund request, no money is given as credit.
• If you want a refund due to a problem, it might cause more holding in your account.

Solution:

• Upload your banking details in your profile of the Income Tax Portal in advance.
• Link the account with your PAN and ensure it is activated.

5. Not Verifying ITR After Filing

Filing ITR ≠ Verification. An unverified ITR is considered invalid.

How to Check the Authenticity of ITR?

• The E-Verify instantly option is the best because you can use Aadhaar OTP, bank net banking, or EVC.
• 2. E-verification is what you need to do first. If that doesn’t work within 120 days, then send the ITR-V to CPC Bengaluru.

What if You Fail to Check the Information?

• After 120 days, the Income Tax Return gets void.
• You will have to re-submit your application and cover all the late filing fees.

Solution:

• As soon as you submit your application, use e-verify to avoid facing any major problems.

6. 6. Filing the Income Tax Return after the due date

The due dates for ITRs in FY 2023-24 are for AY 2024-25.

• By July 31, 2024, most non-audit situations apply to people and businesses.
• Any taxpayers who require an audit (businesses and professionals) have until October 31, 2024.

Late Filing Penalties:

• When filed during this year, it will cost ₹5,000.
• ₹10,000 is the amount if you file it after December 31, 2024

Solution:

• Apply as early as you can to make sure there are no sudden errors.
• Reliable tax calculation can be done by using automatic tools available.

7. 7. Difference in Form 26AS and AIS

All details related to taxes are present in Form 26AS & AIS.

• Tax is automatically reduced from income by employers and banks.
• Revenue collected from saving accounts or FDs
• Activities in the stock market

Mismatches Can Lead To:

• Tax notices given under section 143(1)
• Refund delays

Solution:

• You can get the Form 26AS & AIS documents on the tax portal.
• Compare and match all the information in your tax return to what you declared in the ITR before filing.

Bonus Tips for Hassle-Free ITR Filing 2024

• Income Tax Calculator: Try out  anytime to foresee your possible tax debt.
• ITR online file: E filing makes it easier to avoid errors.
• Save Everything in Digital Format: Store Form 16 and proof of your investments in a digital way.
• Consult a Tax Expert: If you have trouble sorting out your taxes because you work in multiple areas.

Need Professional Help with ITR Filing?

At LICIT360, we provide:

• Error-free ITR filing
• Maximum tax refund assistance
• Notice resolution support

Book a consultation today