ITR-1 (Sahaj) looks simple, but small errors cause defective returns under Section 139(9), delayed refunds, or 234F penalties. Most mistakes are around eligibility (using ITR-1 when you shouldn't), AIS mismatches, and bank validation. Here are the real pitfalls.
You sold even one mutual fund unit or share during the year and still file ITR-1. ITR-1 only allows LTCG u/s 112A up to Rs. 1.25 lakh — anything beyond that (or any STCG, crypto gain, property sale) makes the return defective.
Use ITR-2 if you have any capital gain beyond LTCG u/s 112A up to Rs. 1.25 lakh, any foreign asset, crypto (VDA) income, or more than two house properties. When in doubt, open AIS and check for any 'Sale of securities' entries before choosing the form.
Salary, interest, or TDS numbers in the ITR don't match AIS and Form 26AS. The return gets flagged, refund delayed, or a notice comes asking to reconcile.
Before filing, download AIS, TIS, and Form 26AS from the income tax portal. Reconcile every line — salary, FD interest, savings interest, dividends, TDS. If AIS is wrong, submit feedback in AIS with the correct value before filing the ITR.
The name or date of birth in the ITR doesn't match the PAN database. The return won't upload, or gets rejected at validation.
Pre-fill data pulls from PAN — don't edit name or DOB. If your PAN itself has wrong info, correct it on the NSDL/Protean portal first, then file. Senior citizen benefit requires DOB on PAN to match.
You file with an old, closed, or unvalidated bank account. Refund is issued but bounces back; refund gets stuck indefinitely.
Go to Profile → My Bank Account on the portal and pre-validate at least one bank account before filing. The account must be linked to your PAN and have the same name. Nominate it for refunds.
You only report salary and forget savings account interest, FD interest, or RD interest. Bank reports it via AIS — mismatch triggers a notice under Section 143(1).
Add all interest under 'Income from Other Sources'. Claim the Rs. 10,000 deduction under Section 80TTA (or Rs. 50,000 under 80TTB for senior citizens) on savings interest. FD interest is fully taxable.
You miss the regime toggle and file under the new regime by default — losing all 80C, 80D, HRA deductions. Or vice versa — file under old regime but forget to submit Form 10-IEA.
New regime is now default. If you want the old regime and have business income, file Form 10-IEA before the ITR due date. For salaried/pensioners, simply select old regime in the ITR — no separate form needed. Compare tax under both regimes before locking in.
You submit the ITR but skip e-verification. After 30 days the return is treated as not filed — effectively you missed the deadline and may owe a 234F penalty.
E-verify immediately after submission using Aadhaar OTP, net banking, or EVC. Do it on the same screen. You have 30 days from filing to verify; miss it and the return is invalid.
You enter '&', '#', '_', or other symbols in employer name, address, or bank branch. The portal parser rejects the JSON with a validation error.
Use only alphanumeric characters, spaces, full stops, commas, and hyphens. Replace '&' with 'and'. If the pre-filled employer name has a symbol, edit it before submitting.
You file under old regime but forget PPF contribution, ELSS, insurance premium, health insurance premium, or home loan principal. You overpay tax.
Keep investment proofs ready: PPF, ELSS, LIC, school fees, home loan principal (all 80C, cap Rs. 1.5 lakh). Medical insurance premium (80D, up to Rs. 25,000 / Rs. 50,000 senior). HRA needs rent receipts and landlord PAN if rent above Rs. 1 lakh/year.
ITR shows tax payable (because TDS was less than actual tax). You submit without paying — the return is accepted but you owe interest under 234A, 234B, 234C.
Pay any balance tax on the e-Pay Tax portal (Challan 280) before filing. Enter the BSR code, challan number, and date in the ITR. Only then submit.
You skip PPF interest, LTA, or agricultural income because they are exempt. Large exempt income without reporting can lead to a scrutiny notice.
Report all exempt income under 'Exempt Income' schedule even though tax-free. PPF interest, LTA, gift below Rs. 50,000, agricultural income up to Rs. 5,000 — all must be shown.
You download the offline utility a week ago, file from it, and hit a validation error. The IT department releases patches every few days.
Always download the latest utility from incometax.gov.in just before filing. Or use the online ITR filing on the portal — it's always up-to-date. Check the version number on the utility login screen.