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Avoid These 5 Common Mistakes in Business Tax Filing Filing

Avoid These 5 Common Mistakes in Business Tax Filing (2025 Humane Guide)

Filing your business tax return isn’t just an annual formality—it’s a vital step toward financial stability, funding opportunities, and legal peace of mind. But even experienced founders and professionals make errors that can cost dearly in penalties, stress, and lost credibility. Here are the top 5 mistakes to avoid in business tax filing, and how a little extra care will keep you stress-free year after year.

1. Missing the ITR Filing Deadline

Filing late, even by a single day, can cost your business up to ₹5,000 in late fees—plus monthly interest if you owe taxes. Missing deadlines also means losing the ability to carry forward losses or claim certain refunds.

 

How to avoid:

  • Mark the due date on your calendar (usually September 15 for most businesses in FY 2024–25).

  • Set digital reminders and file early, not at the last minute.

2. Incorrect or Incomplete Business Details

Errors in PAN, business name, turnover, or bank details lead to rejections, notices, and delays in refunds.

 

How to avoid:

  • Double-check all pre-filled and manual entries before submission.

  • Keep your business records, PAN, and bank account details updated and consistent.

3. Missing Eligible Deductions and Expenses

Many businesses overpay tax by not claiming all the deductions and legitimate business expenses (like rent, salaries, depreciation, or R&D). This is common with DIY filers or first-time business owners.

 

How to avoid:

  • Maintain updated expense records throughout the year.

  • Consult your accountant or use reliable tax software to identify every eligible deduction.

4. Not Reconciling TDS, GST, and Advance Tax

If your TDS (tax deducted at source), advance tax, or GST credits aren’t correctly reported and matched (Form 26AS, AIS), you could miss out on refunds or face demand for unpaid tax.

 

How to avoid:

  • Download and verify Form 26AS and AIS before filing.

  • Adjust for any mismatches and ensure all taxes paid are correctly reflected.

5. Failing to File When There’s “No Business” or Losses

Even with zero business activity or losses, companies and partnerships must file an annual return. Skipping it risks regulatory penalties, director disqualification, and closure notices.

 

How to avoid:

  • File your tax return every year, regardless of profits or turnover.

  • If in doubt, “NIL” returns (showing no income/activity) are better than not filing at all.

Humane Pro Tips

  • Seek help for complex filings: Don’t try to go solo with multiple income sources, new business structures, or big investments.

  • Keep digital copies of all documents and confirmation receipts.

  • E-verify your return after filing to complete the process.

  • Use compliance tools or CA support if handling payroll, GST, and TDS together.

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