With the July 31, 2025, deadline for filing your Income Tax Return (ITR) just days away, the pressure is on. Rushing to file at the last minute can often lead to simple but costly mistakes. For senior citizens, whose financial situations have unique rules and benefits, these errors can result in an incorrect tax calculation, a smaller refund, or even an unwelcome notice from the Income Tax Department. Before you hit that final ‘submit’ button, take a moment to review the five most common tax filing mistakes seniors in India make and how you can avoid them.
Advertisement: Last-Minute ITR Filing? Get Expert Help to File Accurately Before the Deadline!
Mistake #1: Ignoring or Under-reporting Interest Income
The Problem: Many seniors believe that if their bank has deducted Tax at Source (TDS) on a Fixed Deposit, they don’t need to report that interest income. Others simply forget to include the interest earned on their savings bank accounts. The reality is, the tax department sees all of this information in your Annual Information Statement (AIS), and a mismatch is an instant red flag.
How to Avoid It: Before you file, log in to the e-filing portal and download your AIS. Add up ALL interest income from every source—FDs, Senior Citizen Savings Scheme (SCSS), savings accounts, etc. Report this total amount under the ‘Income from Other Sources’ section of your ITR. TDS is just a pre-payment of tax; it is not a substitute for reporting the income.
Mistake #2: Automatically Choosing the New Tax Regime
The Problem: The New Tax Regime is the default option, and its lower slab rates look attractive. Many taxpayers select it without doing any calculations, potentially leaving thousands of rupees in deductions on the table.
How to Avoid It: Take 10 minutes to do a quick comparison. Use an online tax calculator. First, calculate your tax under the New Regime. Then, calculate it again under the Old Tax Regime after subtracting your eligible deductions like Section 80TTB (for interest income) and Section 80D (for health insurance). For most seniors with significant interest income, the Old Regime is often far more beneficial.
Mistake #3: Incorrectly Claiming the Section 80TTB Deduction
The Problem: This is a subtle but common error. A taxpayer claims the ₹50,000 deduction for interest under Section 80TTB but forgets to first include that interest income in their Gross Total Income. A deduction can only be claimed against income that has been declared.
How to Avoid It: Always follow the two-step process. Step 1: Report your full interest income (as found in your AIS) under ‘Income from Other Sources’. Step 2: If you are using the Old Tax Regime, claim the deduction of up to ₹50,000 in the ‘Deductions’ schedule of the ITR form.
Mistake #4: Not Filing an ITR to Claim a Refund
The Problem: A senior citizen’s total income may be below the taxable limit (e.g., ₹4 Lakh), but their bank has deducted ₹10,000 as TDS on their FDs. They assume that since no tax is due, there’s no need to file. This is incorrect.
How to Avoid It: The **only way to get your TDS refund is by filing an ITR**. In this scenario, you should file what is known as a ‘Nil Return’. You declare your income, show the TDS that was deducted, and the system will calculate a refund of ₹10,000. If you don’t file, you are forfeiting your own money.
Mistake #5: Filing the ITR but Forgetting to Verify It
The Problem: Hitting the ‘submit’ button on the e-filing portal feels like the final step, but it is not. An ITR that has been submitted but not verified is treated by the tax department as if it was **never filed at all**. This can lead to all the penalties associated with non-filing.
How to Avoid It: As soon as you submit your return, you must complete the verification process, preferably within minutes. The easiest and fastest method is to e-verify using an Aadhaar OTP. This sends a One-Time Password to your registered mobile number. Enter it, and your filing process is 100% complete. Do not forget this crucial final step.
Advertisement: Worried About a Tax Notice? Get Professional Help from Tax Relief Experts.
Your Final 5-Minute Checklist Before You File
- ✅ Have I downloaded and checked my Annual Information Statement (AIS)?
- ✅ Have I calculated my tax liability under both the Old and New Regimes to see which is cheaper?
- ✅ Have I reported ALL my income, especially every rupee of interest?
- ✅ Am I claiming all my eligible deductions correctly (if using the Old Regime)?
- ✅ Am I ready to e-verify with my Aadhaar OTP immediately after submitting?
File with Confidence, Not in Haste
The rush to meet the July 31st deadline is real, but a few minutes of careful review can prevent months of potential stress later on. Go through this checklist one last time, ensure your return is accurate, and file with confidence. A correctly filed return is the surest path to financial peace of mind.
Disclaimer: This article is for informational purposes only and is not a substitute for professional tax advice. Tax laws and deadlines can be subject to change. For complex situations or if you are unsure about any aspect of your filing, please consult a qualified Chartered Accountant.
