8 Tax Return Filing Mistakes to Avoid in FY 2025-26

The tax filing landscape has changed significantly over the last few years. With enhanced scrutiny, advanced data analytics, AIS reporting, and automated reconciliation systems, taxpayers have far less room for error than before. 

To help taxpayers avoid notices, penalties, and delays, here are eight common mistakes that should be avoided during the current filing season.

Common Tax Filing Mistakes

1. Claiming Deductions Without Supporting Documents

Taxpayers should retain documentary evidence supporting deductions and exemptions. Unsupported claims are increasingly being questioned.

2. Not Reconciling AIS and Form 26AS

AIS and Form 26AS should be reviewed before filing. Any mismatch between reported income and tax return disclosures may trigger notices.

3. Choosing the Wrong ITR Form

Selecting an incorrect return form can render the return defective and delay processing.

4. Failing to Report All Sources of Income

Interest income, dividend income, rental income, capital gains, and foreign income should all be reported accurately.

5. Incorrect Capital Gains Reporting

Taxpayers involved in securities, mutual funds, or property transactions should carefully calculate and classify gains.

6. Omitting Income From Previous Employers

Individuals who changed jobs during the year should ensure salary income from all employers is disclosed.

7. Delaying Return Filing

Late filing may result in penalties, interest, and reduced flexibility in tax planning decisions.

8. Forgetting Return Verification

Submitting a return is only part of the process. Verification is necessary for successful completion of filing.

The increasing use of technology by tax authorities means taxpayers should adopt a proactive approach to compliance. Reviewing records, maintaining documentation, and seeking professional advice where necessary can help avoid costly errors.

How Gift CFO Can Help

Gift CFO supports taxpayers with tax planning, return filing assistance, compliance reviews, AIS reconciliation, capital gains reporting, NRI taxation, and strategic advisory services.

DISCLAIMER: This article is published for informational, educational, and analytical purposes only. It does not constitute legal advice, regulatory guidance, trade compliance advice, or a solicitation of any kind.

All information in this article is based on IFSCA Circular No. IFSCA-PMTS/10/2023-Precious Metals/2026/2 dated 15th June 2026, issued under Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with Regulation 78 of the IFSCA (Bullion Market) Regulations, 2025. This circular amends the original Circular dated 10th October 2025 on import of gold or silver by Qualified Jewellers and valid India-UAE CEPA TRQ holders through IIBX, as previously updated on 2nd January 2026.

References to DGFT Notifications 17/2026-27 (dated 16th May 2026) and 19/2026-27 (dated 2nd June 2026) are based on information contained within the IFSCA circular. Readers should independently verify the full text of these DGFT notifications for complete details.

A separate, updated Consolidated Circular incorporating these amendments is being issued by IFSCA. Readers should refer to the official, most current Consolidated Circular available at www.ifsca.gov.in under Legal Framework → Circulars for authoritative and up-to-date compliance requirements.

Eligibility for Qualified Jeweller notification, import authorisation requirements, and applicable policy conditions may vary based on entity type, SEZ status, ITC(HS) classification, and other factors specific to each applicant. Entities are strongly advised to consult qualified legal, customs, trade compliance, and tax professionals before undertaking any bullion import transaction through IIBX.

The publisher is not a law firm, customs broker, or IFSCA-regulated entity. Nothing in this article constitutes legal or regulatory advice