Filing Income Tax Returns (ITR) in India is a meticulous process. One of the most common mistakes is failing to reconcile the return with Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS). Mismatches in tax deducted at source (TDS) or high-value transactions prompt automatic compliance notices from the Income Tax Department.
Another frequent error is selecting the wrong ITR form. Selecting ITR-1 instead of ITR-3 or ITR-4 when business or professional income is present leads to defective return notices under Section 139(9). Understanding your sources of income is essential to select the correct filing track.
Taxpayers must also disclose all active bank accounts held in India, verify interest income, and declare foreign assets or foreign income if they qualify as resident taxpayers. Non-disclosure of assets can attract severe penalties under the Black Money Act.