Conversations at a CA Office - Tax Filing Errors to Steer Clear Of

Lessons on Tax Filing Mistakes

It was almost the end of June, and the office of S & Co., a well-respected mid-sized tax and audit firm, was buzzing with activity. With the tax return season in full swing, the team was knee-deep in ITRs, documents, and client calls.

At her usual desk, Jagruti, a senior staffer with more than 15 years of experience, was calmly working through a pile of files. Across from her sat Pooja, the dependable semi-senior with five years under her belt. Just then, Prajakta, the junior most walked in holding a return file and looking unsure.

“Hey Jagruti, quick question,” Prajakta began. “This client seems to have used the ITR-1 form, but he has rental income from two properties and some capital gains. Shouldn’t he be using something else?”

Jagruti raised her eyebrows. “Good catch, Prajakta. That’s a common mistake - filing the wrong ITR form.”

Pooja joined in, “People often assume ITR-1 is a one-size-fits-all. But each form is designed for specific profiles. The moment there's capital gains, multiple house properties, or business income, you move into different forms.”

“So in this case, it should be ITR-2?” Prajakta asked.

“Exactly,” said Jagruti. “And with the old and new tax regimes, things have only become more nuanced. For instance, someone choosing the new regime under Section 115BAC must tick the right box and ensure consistency with their deductions - or the lack of them.”

“Got it. Sounds like choosing the correct form is more important than I thought,” Prajakta said, taking notes.

Jagruti smiled. “You’re already thinking like a pro. But let’s rewind a bit. This was actually the third of the top three tax filing mistakes we see every year.”

“Right,” said Pooja. “The first one is the simplest but surprisingly common - entering incorrect personal details. Spelling errors in names, outdated addresses, or wrong bank account numbers can delay refunds and trigger unnecessary follow-ups.”

“What is the Best practice here?” Prajakta asked.

“Always match the name with the PAN card or with the latest 26AS,” Jagruti advised. “And verify current bank details before uploading.”

“The second big mistake,” Pooja continued, “is not reporting all sources of income. Most salaried people just upload their Form 16 and move on. But what about interest from savings accounts, fixed deposits, or mutual fund redemptions?”

Prajakta nodded. “We should always cross-check Form 26AS and AIS, right?”

“Exactly,” said Jagruti. “They’re like the department’s mirror. If something’s listed there and not in your return, it can raise red flags.”

“Are these the only issues we look out for?” Prajakta asked.

“Oh no,” chuckled Pooja. “There are plenty more mistakes - like forgetting to e-verify, not paying advance tax on time, or failing to carry forward losses. But these three are the most frequent.”

Prajakta grinned. “Thanks! Seems like tax filing is more about attention to detail than number crunching.”

“You’ve got that right,” Jagruti smiled. “Accuracy beats speed every time.”

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