Filing your income tax return in 2026? Discover the top 10 income tax return filing mistakes that even finance experts make. Learn how to avoid errors related to deductions, AIS/TDS mismatches, exemptions, and penalties to file your ITR correctly and stress-free.
The filing window for the assessment year 2026-27 will open before we know it, and many of us—yes, even the spreadsheet lovers—will repeat the same errors that haunted us last year. In this post we will talk about the most common income tax return filing mistakes 2026, why they happen, and how to dodge them without losing sleep. Whether you have been balancing ledgers since college or just discovered the joy of Section 80C, these pointers will help you glide through the season.
Nobody gets a medal for filing first, but you do get peace of mind for filing right.
The High Cost of Small Errors in 2026: Top 10 Income Tax Return Filing Mistakes
A single typo can generate an automatic notice from the Centralised Processing Centre. Worse, with the upgraded Annual Information Statement (AIS) and real-time TDS match, the margin for error keeps shrinking. Ignoring the small stuff now often means:
* Higher tax liability because of missed deductions.
* Penal interest under Sections 234A, 234B, and 234C.
* A potential 200% penalty for misreporting income.
* Additional paperwork if you must file a revised return.
So, let’s unpack the top income tax return filing mistakes 2026—one at a time.
New Slab, Old Habits
What changed?
Budget 2025 simplified the new tax regime again: lower rates but fewer exemptions. Some taxpayers still default to last year’s slab without looking at the latest tables.
How to fix
* Grab the draft Form 16 for FY 2025-26 and compare old vs. new regime side by side.
* Use a free online calculator to see which slab saves more.
* If your employer deducted TDS under the “old” regime but you prefer the “new” one, you can still opt for it while filing.
Copy-Pasting Last Year’s Form 16: Top 10 Income Tax Return Filing Mistakes
Relying on a PDF from FY 2024-25 is a sure-shot way to misreport numbers. Every Form 16 now includes a unique Document Identification Number (DIN) and a QR code. Using outdated details will mismatch with the TDS database.
* Download the fresh Form 16 from your employer’s portal.
* Cross-check the DIN on the new form with the TRACES website to ensure authenticity.
Ignoring Crypto Gains or Losses:
Top 10 Income Tax Return Filing Mistakes
The 30% flat tax on virtual digital assets has been around for a while, yet many still forget to add those late-night Bitcoin profits (or losses).
* Report each trade separately in Schedule VDA.
* Remember: you cannot offset crypto losses against other income.
* Keep exchange statements as PDF for at least six years in case of scrutiny.
AIS vs. ITR Mismatch
The tax department’s AIS now lists everything from mutual fund redemptions to credit card spends over ₹2 lakh. If your return does not match the AIS, an automated email lands in your inbox.
* Open the AIS portal, download the JSON, and reconcile it with your bank statement.
* Flag any incorrect entry online before filing; this acts as a digital footnote if a query arises.
Aadhaar–PAN Linking After March 31, 2026: Top 10 Income Tax Return Filing Mistakes
Yes, the deadline was extended—again. But if your PAN becomes inoperative, the consequences are immediate:
* 20% TDS on interest income instead of 10%.
* Latest refund held back until linking is complete.
* Inability to file an accurate return.
Link today; it takes less than five minutes on the e-filing portal.
Claiming Deductions You Don’t Qualify For: Top 10 Income Tax Return Filing Mistakes
Common slip-ups
* Claiming HRA while also using the standard deduction for home loan interest on a self-occupied property.
* Double-claiming Section 80C for the same ELSS investment in both your and your spouse’s return.
Quick precautions
* Maintain a master spreadsheet listing each deduction, its section, and evidence.
* Scan bills and link them to the spreadsheet via cloud storage for easy retrieval.
Skipping Advance Tax Interest
Freelancers and traders often forget that they must pay advance tax in four instalments if their total liability exceeds ₹10,000. Miss an instalment and interest under Section 234C kicks in.
* Mark calendar reminders for 15 June, 15 September, 15 December, and 15 March.
* Use the Challan ITNS 280 and select “Self-Assessment Tax” if paying after 31 March.
Forgetting Foreign Bank Interest: Top 10 Income Tax Return Filing Mistakes
Many finance enthusiasts hold a small savings balance in overseas bank accounts. Even if the interest is a modest $15, it needs to be declared under Schedule FSI.
* Convert interest to Indian rupees using the SBI TT buying rate on 31 March.
* Claim foreign tax credit using Form 67 within the same filing deadline.
Trusting Employer TDS Alone
Your company deducts TDS on salary, but you might have dividend income, bank interest, or side-gig revenue. Relying solely on the salary slip creates a mismatch.
* Pull your AIS and Form 26AS, then add any unreported income lines in the correct schedules.
* Use the “Schedule SPI” for clubbing if investing in your minor child’s name.
Missing the E-Verification Deadline
Filing without e-verifying is as good as not filing at all. The window is now just 30 days from submission.
* Use Aadhaar OTP for instant verification.
* Or, if you prefer manual verification, post the signed ITR-V by Speed Post to CPC, Bengaluru, and track the delivery.
A Six-Step Checklist for a Calm Filing Season: Top 10 Income Tax Return Filing Mistakes
* Download and review AIS, TIS, Form 26AS, and latest Form 16.
* Decide between the new and old tax regimes after running both calculations.
* Reconcile bank statements, broker reports, and crypto exchange slips.
* Fill each schedule slowly, saving a draft and returning with fresh eyes the next day.
* Pay any self-assessment tax through the new e-Pay Tax utility and note the BSR code.
* Complete e-verification immediately to close the loop.
Treat the filing process like grocery shopping: make a list, stick to it, and double-check the bill.
Wrapping It Up: Top 10 Income Tax Return Filing Mistakes
The most common income tax return filing mistakes 2026 are less about complex law and more about everyday oversight—typing the wrong number, skipping a small interest entry, or assuming that last year’s rule still applies. Use the list above as a friendly nudge. Review your documents early, block an evening on your calendar, and approach the task like balancing a chequebook: slow, steady, and without distraction. Your future self (and your wallet) will thank you. Happy filing, and may your refund arrive faster than your next coffee run!
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