Filing your Income Tax Return (ITR) should be a moment of relief, not a source of anxiety. However, every year, thousands of taxpayers in Hyderabad receive notices from the Department, not because of evasion, but due to simple, avoidable errors.
As we navigate the Assessment Year (AY) 2026-27, the stakes are higher. With the transition between the old Income Tax Act and the newly implemented Income Tax Act, 2025, staying precise is more important than ever. At Bejugam & Co, we see these patterns daily. Here is our expert guide on income tax return filing mistakes 2025-26 and how you can steer clear of them.
Selecting the Wrong ITR Form
This remains the most common error. Using ITR-1 (Sahaj) when you have capital gains from selling stocks or a house property is a “defective return” trigger.
- How to Avoid: If you have income from business or profession, use ITR-3 or ITR-4. For capital gains or foreign assets, ITR-2 is mandatory.
Ignoring the AIS and TIS
The Income Tax Department now knows almost everything about your finances through the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). If you report ₹10,000 in savings interest but your AIS shows ₹15,000, a notice is almost certain.
- How to Avoid: Always download your AIS/TIS from the e-filing portal before you start. Reconcile every entry with your bank statements.
Also Read: Property TDS Services in Hyderabad
Not Disclosing "Exempt" Income
Many taxpayers believe that if an income isn’t taxable (like PPF interest, agricultural income, or certain gifts), it doesn’t need to be reported. This is a myth.
- How to Avoid: Declare all exempt income in the “Exempt Income” schedule. This creates a “clean” financial trail for your future asset purchases.
Forgetting to E-Verify
Your job isn’t done when you click “Submit.” An ITR is legally invalid unless it is verified within 30 days.
- How to Avoid: Use Aadhaar OTP or Net Banking to e-verify immediately after filing. Don’t leave it for later.
Complete Guide for Individuals and Businesses
The path to a “Notice-Free” filing differs based on your income profile.
For Salaried Professionals
- The “Double Form 16” Trap: If you switched jobs in FY 2025-26, you likely have two Form 16s. Many people only file using the latest one. This leads to massive under-reporting of tax because both employers gave you the basic exemption limit benefit.HRA Claims: Under the new 2025 Act rules, if you are claiming HRA, ensure you have the Landlord’s PAN and a registered rent agreement if the annual rent exceeds ₹1 lakh.
For Business Owners & Freelancers
- Digital Payments Incentive: If you are a small business in Hyderabad opting for presumptive taxation (Section 44AD), remember that the deemed profit rate is 6% for digital receipts but 8% for cash receipts.
- Audit Readiness: If your turnover exceeds the threshold (₹10 Crores for most digital businesses), ensure your Tax Audit is completed by a Chartered Accountant by September 30, 2026.
Frequently Asked Questions
You can file a Revised Return under Section 139(5). The deadline to revise your return for this year is March 31, 2027.
Yes. You must disclose all active savings and current accounts held in India. You only need to select one "Primary" account for your tax refund, but the Department requires the details of all others to monitor cash flow.
Common reasons include:
- Your bank account is not pre-validated.
- There is a mismatch between your TDS and Form 26AS.
- You haven't responded to a "Proposed Adjustment" notice in your email.
Yes. Our Hyderabad office specializes in "Tax Representation." If you've received a notice for previous years, we can help you draft a technical response and represent your case before the authorities.
The New Tax Regime is now the default. If you want to claim deductions like HRA or 80C, you must explicitly "Opt-Out" by filing Form 10-IEA before the July 31 deadline.
