Appendix D: Common Mistakes Checklist

Quoting 1961 Act sections for Tax Year 2026-27 matters, or 2025 Act sections for FY 2025-26 returns.
Using old section codes (194C, 194J) in challans for payments after 31 March 2026.
Claiming HRA, 80C, 80D or self-occupied home loan interest in the new regime.
Setting off house property loss against salary in the new regime.
Missing the section 37 rule for micro and small enterprise dues.
Missing the stamp value checks under sections 53 and 78, and the buyer side tax under section 92.
Applying the section 156 rebate to tax on special rate capital gains.
Filing a loss return late and losing the carry forward.
Not deducting TDS on partner remuneration and interest above Rs. 20,000.
Not reconciling TDS with Form 168 and AIS before filing.
Treating a buyback in Tax Year 2026-27 as dividend; it is now capital gains.
Staying in the normal company regime to build MAT credit; MAT is a final tax from Tax Year 2026-27.
Ignoring the 51% continuity test in section 119 during share deals.
Assuming a merger carries forward losses for 8 fresh years; only the remaining period is available.
Claiming treaty rates without a TRC, Form 41 or beneficial ownership.
Not grossing up where the Indian payer bears the tax on a foreign payment.
Filing Form 48 (TP report) without contemporaneous documentation and benchmarking.
Overlooking the thin capitalisation cap for interest to foreign group companies.