Paying taxes is an essential part of being a responsible citizen and a financially aware individual. Yet even the most diligent taxpayers make mistakes when filing their income tax returns. These errors can lead to unnecessary penalties, loss of refunds, or even notices from the Income Tax Department.
At PRADIP B. GANDHI & CO., we’ve worked with hundreds of individuals and businesses over the years as a leading Best Tax Advisor in Ahmedabad, and we’ve seen the same common errors repeated time and again. This blog highlights the top 7 income tax mistakes to avoid this year — and how professional guidance from a Chartered Accountant in Ahmedabad can help you stay compliant while optimizing your tax savings.
Not Reporting All Sources of Income
One of the most frequent mistakes taxpayers make is failing to report all sources of income. This includes not just your salary but also interest earned on savings accounts, fixed deposits, rent from property, dividends, or freelance earnings.
The Income Tax Department now has access to a wide range of financial data through the Annual Information Statement (AIS) and Form 26AS. Omitting any income, even unintentionally, can raise red flags and lead to scrutiny.
Working with an experienced Income Tax Consultancy Service in Ahmedabad like PRADIP B. GANDHI & CO. helps you identify all taxable sources, ensuring that your returns are complete, accurate, and compliant.
Failing to Verify Form 26AS and AIS
Many taxpayers overlook verifying their Form 26AS and AIS before filing. These forms summarize the taxes deducted at source (TDS), advance taxes paid, and high-value financial transactions.
A mismatch between the data in your tax return and the government database can result in delayed refunds or assessment notices.
Our experts at PRADIP B. GANDHI & CO., a reputed Chartered Accountant in Ahmedabad, cross-check every detail with your AIS and Form 26AS to maintain consistency and accuracy. This process prevents unwanted disputes and helps you file flawless returns.
Missing the Tax Filing Deadline
Another common yet serious mistake is missing the income tax filing deadline. While late filing is still possible with penalties, it restricts your ability to carry forward losses and claim certain deductions.
The due date for most individual taxpayers is 31st July, but this can vary based on your category or business type. Filing on time helps you avoid late fees, interest, and unwanted scrutiny from the tax department.
As one of the top accounting firms in Ahmedabad, PRADIP B. GANDHI & CO. reminds clients of important deadlines, assists with online filing, and offers end-to-end Income Tax Consultancy Service in Ahmedabad so that your filings are always on time.
Incorrect Claim of Deductions and Exemptions
Section 80C, 80D, and 24(b) of the Income Tax Act allow for significant deductions — including investments in ELSS, insurance premiums, tuition fees, and home loan interest. However, many taxpayers either fail to claim eligible deductions or claim ineligible ones due to lack of knowledge.
Claiming incorrect deductions can lead to reassessment or penalties. To avoid this, it’s crucial to have professional advice from a Best Tax Advisor in Ahmedabad who understands both individual and corporate tax laws.
At PRADIP B. GANDHI & CO., we identify legitimate deductions that lower your tax liability without crossing compliance boundaries.
Ignoring Advance Tax Payments
If your tax liability exceeds ₹10,000 in a financial year (after TDS), you’re required to pay advance tax in four installments. Many self-employed individuals, freelancers, and business owners overlook this rule, leading to interest under Sections 234B and 234C.
To avoid such penalties, it’s essential to estimate your taxable income correctly and pay advance tax accordingly. Our team at PRADIP B. GANDHI & CO., one of the top accounting firms in Ahmedabad, provides quarterly assessments and reminders to help clients stay on track with advance tax obligations.
Not Reconciling TDS and Tax Credits
Even if your employer deducts TDS, it’s your responsibility to verify that the correct amount has been deposited with the government. In several cases, TDS mismatches occur due to errors in PAN numbers or filing delays by the deductor.
Our experts at PRADIP B. GANDHI & CO., a trusted Chartered Accountant in Ahmedabad, review your TDS certificates and tax credits meticulously to ensure accurate reconciliation. This step prevents refund delays and minimizes audit risks.
Filing Without Professional Guidance
With online platforms and free filing tools available, many taxpayers attempt to file returns independently. However, the tax system in India can be intricate, especially for those with multiple income sources, business operations, or foreign assets.
DIY tax filing may save time initially, but small mistakes can lead to financial losses later. Professional consultation from the Best Tax Advisor in Ahmedabad provides not only accuracy but also strategic planning to minimize taxes.
At PRADIP B. GANDHI & CO., we offer comprehensive Income Tax Consultancy Service in Ahmedabad, including return filing, tax audit, planning, and advisory advice, all tailored to individual and business needs.
Common Penalties and Consequences of Tax Filing Mistakes
The Income Tax Department has become more vigilant in recent years, and even small errors can have serious consequences:
- Late Filing Fee: ₹1,000 to ₹5,000 under Section 234F.
- Interest on overdue tax is charged at 1% per month as per Section 234A.
- Loss of Carry Forward Benefits: Ineligible for loss carry forward if returns are delayed.
- Scrutiny and Audit: Incorrect filings can lead to detailed scrutiny by tax authorities.
Partnering with one of the top accounting firms in Ahmedabad, such as PRADIP B. GANDHI & CO., eliminates these risks through timely and accurate tax filing services.
Importance of Hiring a Professional Chartered Accountant
A qualified Chartered Accountant in Ahmedabad does much more than file returns. They analyze your complete financial structure, identify saving opportunities, and ensure compliance with all statutory obligations.
The right CA also assists in business restructuring, tax audit representation, and investment planning — all while keeping your long-term goals in mind.
PRADIP B. GANDHI & CO. combines decades of experience with modern digital tools to deliver professional tax advisory and accounting solutions that meet today’s complex financial challenges.
How Income Tax Consultancy Services Add Value
Engaging a professional Income Tax Consultancy Service in Ahmedabad brings significant benefits beyond compliance:
- Accurate Tax Filing: Avoid errors that could trigger penalties or notices.
- Tax Planning: Structure your finances for optimal tax savings.
- Audit Assistance: Handle scrutiny cases confidently with expert support.
- Corporate Advisory: Get insights into business tax efficiency and growth strategy.
At PRADIP B. GANDHI & CO., our services are designed for both individuals and organizations, helping them achieve financial clarity and regulatory confidence.
Why Choose PRADIP B. GANDHI & CO.
PRADIP B. GANDHI & CO. is one of the most trusted names in Gujarat for taxation and financial advisory. As the Best Tax Advisor in Ahmedabad, we provide personalized solutions that align with our clients’ financial goals and legal requirements.
Our team of qualified professionals includes some of the most experienced Chartered Accountant in Ahmedabad, offering a blend of accuracy, integrity, and technical expertise. We handle everything from income tax filing and business advisory to audit and compliance services.
As one of the top accounting firms in Ahmedabad, our mission is simple — to help you make informed financial decisions, reduce tax burdens, and stay compliant with complete peace of mind.
Conclusion
Filing income tax may seem straightforward, but small mistakes can have lasting financial and legal implications. From missing deadlines to claiming incorrect deductions, these errors can easily be avoided with the right professional guidance.
Partnering with PRADIP B. GANDHI & CO., the Best Tax Advisor in Ahmedabad, gives you the advantage of accuracy, experience, and personalized support. Our expert Chartered Accountant in Ahmedabad team simplifies the tax process, optimizes your savings, and safeguards your compliance.
Need help avoiding common income tax mistakes? Contact PRADIP B. GANDHI & CO. at +91 93761 39815 or info@caahmedabad.com for expert Income Tax Consultancy Service in Ahmedabad today.
