As the July 31 income tax filing deadline approaches, taxpayers must ensure their returns are accurate to avoid notices and refund delays. Key steps include verifying personal data, reconciling income with the Annual Information Statement, and completing the mandatory e-verification process.
With the July 31 deadline for filing Income Tax Returns (ITR) for the financial year 2025-26 just around the corner, many taxpayers are in the final stages of preparing their documents. Filing a return is a legal obligation for many individuals, and while the process has been simplified through the income tax portal, small errors can lead to significant administrative hurdles. If a return is marked as defective by the tax department, it can result in unwanted scrutiny, delayed processing of tax refunds, and the need to file a revised return.
Verifying Forms and Personal Data
The foundation of a valid return is choosing the correct ITR form. Selecting an incorrect form based on your source of income or residential status can lead to the return being rejected or classified as defective. Beyond the form type, accuracy in personal details is non-negotiable. Taxpayers should double-check their Permanent Account Number (PAN), Aadhaar details, and bank account information. Any mismatch in bank details, in particular, can prevent the successful credit of a tax refund. It is also important to ensure that the bank account used for refunds is pre-validated on the income tax portal.
Matching Data with AIS and Form 26AS
A common reason for tax notices is a discrepancy between the income reported by the taxpayer and the data available with the tax authorities. Taxpayers should meticulously compare their return data against the Annual Information Statement (AIS), the Taxpayer Information Summary (TIS), and Form 26AS. These documents provide a comprehensive record of financial transactions, including interest from bank accounts, dividends, sale of securities, and property transactions. Discrepancies often arise when interest income or capital gains are omitted. Furthermore, verify that all Tax Deducted at Source (TDS) credits mentioned in Form 26AS are correctly reflected in the return. If there is a mismatch, the tax department may send a notice demanding an explanation or additional tax payments.
Completing the E-Verification Process
Many taxpayers believe that the filing process ends once they click the submit button on the portal. This is a common misunderstanding. The filing is only considered complete once the return is e-verified. This can be done conveniently through Aadhaar-based OTP, net banking, or other available electronic methods. If a return is submitted but not verified within the stipulated timeframe, the income tax department treats the return as if it were never filed. This can lead to penalties for late filing or the loss of the ability to carry forward certain losses. Therefore, ensuring that the acknowledgment receipt is generated after successful e-verification is the most critical final step in the process.