ITR filing: Which is the correct tax return form for you? ITR-1 to ITR-7 eligibility explainedITR filing FY 2025-26: Filing your income tax return can seem to be a daunting task. This annual exercise should be completed with extreme caution and presence of mind – from getting all your documents together, to reconciling all important forms – ITR filing should be taken seriously.While income tax filing has become increasingly technology driven with pre-filled returns, the Annual Information Statement (AIS), and Form 26AS, taxpayers should not mistake automation for accuracy. The biggest misconception today is that a pre-filled return is a ready-to-file return. In reality, the responsibility for reporting complete and accurate information continues to rest with the taxpayer.As Archit Gupta, Founder and CEO of ClearTax says, “Tax filing should not be viewed as a year-end compliance exercise but as a financial reconciliation process. A careful review before submission can help avoid notices, refund delays, and unnecessary tax disputes.”Also Read | ITR filing FY 2025-26: What documents are required to file your income tax return? Quick checklist
ITR Filing: Mistakes To Avoid
Archit Gupta lists some common mistakes taxpayers should avoid:1. Choosing the wrong ITR formSelecting an incorrect ITR form can result in the return being treated as defective. Ensure the form matches your income sources and residential status. For salaried taxpayers, the choice is between ITR-1 and ITR-2. Incomes above Rs 50 lakh require ITR-2 to be filed. If your capital gains are less than Rs 1.25 lakh you can file ITR-1.2. Choosing the wrong tax regimeCompare your tax liability under both the old and new income tax regimes before making your choice. The right tax regime saves more tax. If you are opting for the old income tax regime – remember to file the return within the July 31, 2026 due date. After that the option cannot be exercised.Also Read | ITR filing: How to pay zero tax under new and old tax regime – know all about Section 87A rebate3. Relying entirely on pre-filled dataPre-filled information is only a starting point. Taxpayers should independently verify all income and tax details.4. Entering incorrect personal detailsVerify your PAN, Aadhaar, bank account details, and IFSC code to avoid refund delays. In case of refunds, incorrect personal details will delay refunds.5. Not reconciling AIS, Form 26AS and Form 16Before filing, compare your income and TDS details with AIS, Form 26AS, and Form 16/16A. Mismatches can lead to notices or delayed refunds.Also Read | ITR filing FY 2025-26: Old vs new income tax regime – how salaried taxpayers can lower tax outgo6. Missing out on reporting all incomeApart from salary, report interest income, rental income, dividends, freelance earnings, capital gains, and income from multiple employers, wherever applicable.7. Ignoring capital gainsMany taxpayers overlook gains from shares, mutual funds, or property transactions. These must be disclosed correctly, even where TDS has been deducted.8. Claiming ineligible deductionsClaim only those deductions and exemptions that you are eligible for and maintain supporting documents. This is important since any false claims can trigger a tax notice.Also Read | ITR filing: Which is the correct tax return form for you? ITR-1 to ITR-7 eligibility explained9. Ignoring Foreign assets and foreign incomeResident taxpayers should correctly report foreign assets and foreign income, where applicable. Inaccurate or no disclosure may lead to scrutiny and penalties.10. Not verifying the ITRFinally, your filing process is complete only after e-verification or submission of the signed ITR-V within the prescribed timeline. This is an absolutely essential step.
