As the July 31 deadline for filing Income Tax Returns (ITR) for the financial year 2024-25 approaches, experts are warning taxpayers to tread carefully and avoid common pitfalls that can lead to penalties, delayed refunds, or even scrutiny by the Income Tax Department.

With ITR forms for FY 2024-25 already available, now is the ideal time to prepare and avoid last-minute mistakes. One of the most frequent errors is selecting the wrong ITR form. With seven different forms catering to different income types and taxpayer categories, choosing the incorrect one can render your return invalid and force you to file a revised version.

Another major blunder is failing to file the return on time. While the deadline is July 31, 2025, missing it can attract penalties up to Rs 10,000 and may restrict your ability to carry forward losses or claim certain deductions.

Taxpayers also often forget to report all sources of income, such as interest from savings or fixed deposits, rental income, or capital gains from mutual funds. Omitting any income can raise red flags with the department.

Equally important is verifying the return after filing. An unverified return is treated as invalid. This step, which can be completed online through Aadhaar OTP or net banking, is mandatory.

Finally, skipping a review of Form 26AS and the Annual Information Statement (AIS) can result in mismatches between your records and the tax department’s data. These forms provide a summary of taxes paid and financial transactions, and must be cross-checked before submission.

Experts urge taxpayers to start early, stay informed, and file carefully to ensure a smooth and stress-free tax season.