The deadline for filing Income Tax Returns for Assessment Year 2026-27 is July 31, 2026. Taxpayers should verify pre-filled data against bank statements and avoid common errors like missing out on interest income or choosing the wrong tax regime. Failing to e-verify the return after submission will make it invalid.
The deadline for individuals to file their Income Tax Returns (ITR) for the Assessment Year 2026-27 is July 31, 2026. As the clock runs down, taxpayers must ensure their filings are accurate to avoid potential penalties or scrutiny from the income tax department.
Verifying Pre-filled Information
While the income tax portal offers pre-filled data based on the Annual Information Statement (AIS) and Tax Information Statement (TIS), this should be treated as a draft. Taxpayers must cross-check these figures with their own financial records, including salary slips, bank statements, and investment portfolios. Discrepancies between what is reported and the data held by the tax department are a primary cause for receiving notices or being flagged for a defective return.
Reporting All Income Streams
One common area where taxpayers encounter trouble is failing to report secondary income. Income such as interest earned on fixed deposits, recurring deposits, and savings accounts must be declared. Furthermore, any dividend income received from company shares or capital gains made from selling stocks, mutual funds, or property are taxable and must be explicitly mentioned in the ITR. Omitting these details can lead to a tax notice for under-reporting income, which may result in interest and penalties.
Selecting the Right Tax Regime and Form
Taxpayers need to select between the old tax regime and the new tax regime. Since the two systems offer different tax slabs and deduction rules, it is important to calculate the total tax liability under both before deciding. Once a choice is made for the year, it may be difficult to change later. Additionally, choosing the incorrect ITR form—such as filing ITR-1 when income sources like capital gains actually require ITR-2—can also lead to a defective return status.
Completing the E-Verification Process
Submitting the return online is only half the process. A return is only considered complete once it has been e-verified. This can be done conveniently through Aadhaar-based OTP, net banking, or other available methods on the income tax portal. If a taxpayer fails to e-verify within the allowed time frame after filing, the return will be treated as invalid, effectively meaning the tax was never filed. After verifying, taxpayers should download their acknowledgement receipt for future records.