The deadline for filing ITR-1 returns for non-audit cases has been extended to September 15, 2025. Amid this extension, taxpayers are strongly advised to exercise caution and avoid claiming deductions for which they are not eligible.
Some of the frequently claimed deductions include:
The revised ITR guidelines emphasize a strict “zero-tolerance” stance on false or inflated claims. According to Section 270A of the Income Tax Act, 1961, taxpayers who misreport income or claim unwarranted deductions can face penalties up to 200% of the tax due, along with applicable interest. In serious cases, legal prosecution under Section 276C may also be initiated.
It is therefore critical that taxpayers submit only valid claims to avoid hefty fines and potential legal repercussions.
With the tax department’s heightened scrutiny and the new tax regime becoming the default, taxpayers must be vigilant when filing their returns. Here are some practical tips to help you file correctly and avoid pitfalls:
Salaried employees can opt out of the new regime through the ITR form, while business owners and professionals must file Form 10-IEA. Ensure that the regime selected matches the one communicated to your employer.
Supporting documents are essential to substantiate your claims and avoid scrutiny:
Any mismatch could prompt a notice from the tax department—raise discrepancies with deductors or update your return accordingly.
After filing, ensure your return is verified either by:
Also Read: ITR Filing FY 2025–26: How Much Money Can You Gift to a Family Member Tax-Free in India?
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 9, 2025, 12:08 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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