income tax return
The season for filing Income Tax Returns (ITR) has come once again. Taxpayers are rapidly filing their returns for the assessment year 2026-27 (financial year 2025-26). According to a figure, till June 17, 2026, more than 42.6 lakh people have already submitted their returns. This time the Income Tax Department is using Artificial Intelligence (AI) very strictly. This simply means that even your smallest mistake or wrong information will be caught immediately, due to which the tax notice can directly reach home.
If you are also preparing to file your return before the deadline of 31st July, then it is very important to keep some important things in mind. Let us know the common mistakes which you should avoid at all costs, so that the return process can be completed without any hindrance.
Choosing the right form will not be difficult
The first step while filing returns is to choose the correct ITR form. Your return may be declared defective if the form is filled incorrectly. For example, if you own any foreign assets or have long-term capital gains of more than Rs 1.25 lakh from equity mutual funds, you cannot file a simple ITR-1 form. In such a situation you will have to use ITR-2. Similarly, employed people who do future-option (F&O) trading in the stock market will have to give their information in ITR-3 form.
Keeping a close eye on everything from hiding income to fake rebates
Often people forget to show the nominal interest received from the bank’s savings account, dividend or the income received from the old company in case of change of job in the return. The Income Tax Department easily matches all this information with the bank and TDS statements through your PAN card. Apart from this, claiming tax exemption on House Rent Allowance (HRA) without solid evidence can prove costly. If you are availing exemption by paying rent to your parents, then definitely keep the rent agreement and proof of payment. Also, the parents will also have to show that rent amount as income in their return. Similarly, it is mandatory to provide transaction reference number for exemption of donation under 80G.
It is very important to match AIS with Form 26AS
Before filing ITR, thoroughly check Form 26AS with your Annual Information Statement (AIS), Tax Information Statement (TIS). Many times there is a difference between the information given by the bank and your actual figures. If you file the return without matching, then notice is certain to come. Be especially careful while giving information about capital gains. Due to the changes in the budget, the date of July 23, 2024 is very important for capital gains. If you see any wrong information or duplicate entry in AIS, then please visit the Income Tax Portal and submit your feedback.
Disadvantages of not doing e-verification along with missing the deadline
The last date for filing returns for employed people is 31 July 2026. At the same time, for those who file ITR-3 or ITR-4 (without audit), the deadline has been fixed as August 31. Missing the deadline may attract a penalty of up to Rs 5,000 (Rs 1,000 for income less than Rs 5 lakh).
This time the new tax regime is applicable by default, in which there is no tax on income up to Rs 12 lakh (up to Rs 12.75 lakh for salaried). If you want to take advantage of the old tax system, then it is mandatory to file the return before the deadline. Lastly, most importantly, do not forget to e-verify your return within 30 days of submitting it online. If you do not do this, your entire return will be considered invalid.
