📁 Table of Contents
- ❓ Why Proper Reconciliation & Accuracy Matter
- ✅ 15 Step ITR Preparation & Filing Process
- ❗ 10+ Common ITR Filing Mistakes You Must Avoid
- 🛠️ In-depth Reconciliation Checklist
- 📊 Visual Analytics: Mistakes vs. Notices
- ✅ Advanced Tax Preparation Tips & Tools
- 📋 Document Tracker & Timeline
- 🔎 Real-Life Case Studies
- ❓ FAQ Expanded
- 🔗 Internal & External Resources
1. Why Proper Reconciliation & Accuracy Matter
ITR Filing Mistakes AY 2025‑26 and Careless ITR preparation leads to:
- ✔️ Notices under Sections 139(9)/143(1)/133(6) for mismatches—200k+ notices issued last year shutting returns as defective.
- ✔️ Refund delays due to incorrect bank details or return not verified.
- ✔️ Higher tax liability due to wrong regime selection or overlooked exemptions.
- ✔️ Penalties up to ₹10,000 and future compliance hassles.
2. 🧭 15-Step ITR Preparation & Filing Process (with Examples)
| Step | Task | Why It Matters |
|---|---|---|
| 1 | Update PAN-Aadhaar-KYC on portal | Ensures authentication |
| 2 | Download Form 26AS | Shows all TDS credited |
| 3 | Download AIS & TIS | Captures life insurance, dividends, etc. |
| 4 | Collect Form 16/16A/12BB & bank statements | Essential income & exemption records |
| 5 | Reconcile TDS from all employers | Avoid mismatch notices |
| 6 | Compute exempt & taxable components | HRA, LTA, agriculture, scholarship |
| 7 | Compute capital gains (with proof) | Refer to broker statements & AIS |
| 8 | Report other income (rental, FD interest) | Essential for completeness |
| 9 | Choose correct ITR form | ITR‑1 for wages, ITR‑4 for business/profession |
| 10 | Decide tax regime (old vs new) | Use savings calculator |
| 11 | Compute tax and pre-pay tax | Avoid Sec 234B & C interest |
| 12 | Fill ITR form with data | Use official offline utility |
| 13 | Validate, upload, and check summary | Ensures completeness |
| 14 | E‑verify correctly | Via Aadhaar OTP or netbanking |
| 15 | Download ITR‑V pdf | Save for records |
3. ❗ 10+ Common ITR Filing Mistakes You Must Avoid
- Wrong Form Selection – Filing ITR‑1/4 while earning capital gains → defective return.
- Skipping Tax Reconciliation – MIS-reconciling 26AS vs actual TDS.
- Unreported FD/NSC Interest – All interest counts, even exempt.
- HRA Errors – Mismatched rent receipts, landlord PAN.
- Missing Exempt Income – LTA, agriculture, scholarships.
- Overlooking Prior-Employer Income – Mid-year job changes.
- Wrong Regime – Old regime may offer more tax savings.
- Incorrect Bank Details – Invalid refund cases.
- Not Verifying Return – E‑Verification is mandatory.
- Missing Evidence – Rent docs, insurance, exempt income proofs.
- Not Updating Profile – Old PAN‑Aadhaar status blocks e‑filing.
- Unintended Deductions – Claiming 80C without proof.
- Ignoring Loss Carry-Forwards – Business loss not reported for future benefits.
4. ✅ In-depth Reconciliation Checklist
| Income Type | Source | Reconciliation Action |
|---|---|---|
| Salary | AIS / Form 16 | Check TDS, changes in employer |
| TDS | 26AS + Form 16A | Verify quantum and deductor name |
| Bank FD | AIS + Bank statements | Add interest > ₹10 |
| Capital Gains | AIS + broker statement | Upload contract notes |
| Rent Income | Lease + bank credits | Provide landlord PAN/receipts |
| Exempt Income | Proof documents | Include under Schedule EI |
| Foreign Income | AIS/statement + docs | Declare foreign income sources |
| Donations | 80G certificate | Claim under ‘Donations and Exemptions’ |
| Business Income | Profit & Loss sheet | Upload audited accounts |
| Loss Carried Forward | Previous ITR copies | Ensure section wise claims |
| TCS (Form 27D) | AIS + bills | Claim TCS credit |
5. 📊 Mistakes vs. Notices
Data depicting notices by mistake type:
- Mismatch 26AS: 40%
- Wrong ITR Form: 25%
- HRA Errors: 10%
- Unverified Return: 15%
- Others: 10%
Insight: Mismatch in data leads to 40%+ of notices!
6. ✅ Advanced Tax Filing Tips & Tools
- 🧩 Use Offline Utility Tool – Downloadable post‑June 15 for AY 2025‑26.
- 📈 Use AIS Feedback – Rectify pre‑filing mismatches.
- 📅 Automate Reminders – May–Sept is filing season.
- 🧾 Keep Documents – 80C/Section 80D proofs.
- 👥 Hire Chartered Accountants for complex cases.
- 🧮 Free Web Calculators – Evaluate regimes and tax liability.
7. 📋 Document Tracker & Timeline
Start gathering docs from April to June.
Preparation phase from July to September.
8. 🔎 Real-Life Case Studies
Case 1: Asha missed rent receipt upload → notice under 139(9).
Solution: Uploaded online proof and submitted rectified return.
Case 2: Ravi filed under new regime but lost ₹30k deduction.
Solution: Re-filed revised ITR under old regime and claimed refund.
Case 3: Manoj forgot e‑verification → ITR rejected.
Solution: Filed revised ITR and e-verified within 30 days.
9. ❓ Expanded FAQs
- Why download Form 26AS? It shows all TDS/TCS, advance tax, refunds for accurate total tax credit.
- New vs Old Tax Regimes? New regime has lower slabs but most deductions under old are not allowed.
- What if I get a notice? Respond within 30 days under the portal or file a rectification.
- How to e-verify? Use OTP, netbanking, or ITR‑V by post.
- Carry forward losses? File ITR before due date and mention under loss details.
10. 🔗 Internal Resources
11. 🔗 External Resources
Income Tax Department Official Portal
Media-
Go through Common Issues while filing ITR & their respective solutions | #incometax
