Income Tax Return Filing 2025: Key Precautions to Avoid Penalties and Tax Notices as Deadline Nears

The last date to file Income Tax Returns (ITR) for FY 2024-25 (AY 2025-26) is just around the corner. The deadline, set for 15 September 2025, is creating urgency among taxpayers. While many are rushing to meet the due date, tax experts caution that last-minute filing mistakes can invite penalties, delay refunds, and even trigger income tax notices.

If you are planning to file your return in the final hours, here are some essential precautions to ensure smooth processing and avoid future troubles.

Gather All Required Documents Beforehand

The most common errors occur when taxpayers skip cross-checking their income details. To avoid mismatches:

• Salaried individuals must keep Form 16 ready.

• Download your Annual Information Statement (AIS) and Form 26AS from the Income Tax Department portal.

• Match the data in Form 16 with AIS and 26AS to ensure consistency.

Any mismatch between reported income and official records can lead to a tax department notice.

Choose the Correct ITR Form

Using the wrong ITR form is another reason for rejection or notices. The choice depends on the nature of income:

• ITR-1: For salaried taxpayers with income up to ₹50 lakh.

• ITR-2 / ITR-3: For individuals with business income, capital gains, or multiple income sources.

Filing under the wrong form category can cause your return to be invalid.

Pre-Validate Your Bank Account

Refunds are issued only to pre-validated bank accounts. Many taxpayers overlook this step, resulting in delays. Log in to the e-filing portal and ensure your active bank account is pre-validated. This simple step helps avoid refund hassles later.

Report All Sources of Income

Taxpayers often disclose only their salary income while ignoring other sources, which can lead to notices. Make sure to include:

• Rental income

• Interest earned on bank deposits

• Dividends from shares

• Agricultural income (if applicable)

• Capital gains from property, mutual funds, or stock sales

Accurate disclosure eliminates the risk of scrutiny and keeps your tax profile clean.

Pay Self-Assessment Tax Before Filing

If your TDS and advance tax payments don’t cover the total liability, pay the balance as self-assessment tax before filing your return. You can calculate the dues and pay using a challan online. Filing without clearing dues may lead to interest charges and penalties.

Don’t Forget to E-Verify Your ITR

Submitting your ITR is not the final step—e-verification is mandatory. Without it, your return will not be processed. The easiest way is to use your Aadhaar-linked OTP, which completes the process instantly.

Penalties for Missing the Deadline

If you miss the 15 September deadline, you can still file a belated return until 31 December 2025, but with consequences:

• ₹5,000 late filing fee.

• Reduced penalty of ₹1,000 if income is below ₹5 lakh.

• 1% monthly interest on any unpaid tax liability.

Bottom Line

With the ITR filing deadline just two days away, taxpayers must act carefully and not rush through the process. Filing with the right documents, correct form, and proper disclosures will ensure smooth refunds and protection from notices.

Tax experts advise: Don’t wait until the last minute. File your ITR today to stay stress-free.