ITR Refund 2025: 3 Mistakes That Could Delay Your Refund or Trigger Notices

Over 2 Crore Taxpayers Faced Refund Delays Last Year Due to Simple Filing Errors—Don’t Let It Happen to You

As the 2025 ITR filing season progresses, millions of taxpayers are awaiting their income tax refunds. But even a small mistake in your return can lead to delays, notices, or penalties. In fact, in 2024, over 2 crore taxpayers received error notices, mostly due to negligence—not tax evasion.

Here are three common mistakes that could be holding up your refund.

1. Skipping E-Verification After Filing

Problem: Many taxpayers forget to e-verify their ITR within the required 30-day period.
Impact: The return becomes invalid, and the refund is automatically blocked.
Penalty Risk: Failing to verify can result in a penalty of up to ₹5,000.

✅ Solution:
After submitting your ITR, complete e-verification immediately through Aadhaar OTP, net banking, or other valid methods.

2. Mismatch with AIS (Annual Information Statement)

What is AIS? It’s a report issued by the Income Tax Department that tracks all your financial transactions—TDS, salary, interest, dividends, investments, and more.
Common Issue: If your declared income doesn’t match the AIS data, your return may get flagged.

Example:
You forgot to report dividend income that appears in your AIS — this mismatch can lead to a notice and refund delay.

✅ Solution:
Always review your AIS before filing and ensure all sources of income are accurately reported.

3. Using the Wrong ITR Form

Problem: Many taxpayers incorrectly file ITR-1 (Sahaj), even when they have capital gains, business income, or foreign assets.
Impact: Returns are either rejected or marked defective, leading to penalties and delayed processing.

Real Case:
A Mumbai taxpayer used ITR-1 despite having capital gains and ended up with a ₹1.46 lakh penalty.

✅ Solution:
Use the correct ITR form based on your income sources. If unsure, consult a tax professional or use trusted online filing tools.