Income Tax Return Filing for FY 2025-26: Don’t File Before Checking These 6 Critical Things
Short summary: Filing your ITR early without checking AIS, Form 26AS, tax regime, bank accounts and high-value transactions may lead to notices, refund delays and mismatches.
Introduction
Income Tax Return filing for FY 2025-26 has started, but filing too early without checking important records can create problems later. The Income Tax Department now cross-checks information from banks, employers, registrars, investment platforms, credit card companies and other reporting entities through AIS, TIS and Form 26AS.
Even a small mismatch may trigger a defective return notice, refund delay, tax demand or future compliance issue. Before submitting your ITR, complete these six critical checks.
1. Check AIS/TIS and Avoid Filing Too Early
AIS and TIS show income, TDS, SFT transactions and other financial information reported to the Income Tax Department. Many reporting entities update high-value transactions by 31 May. Filing before these updates may create mismatches later.
| Transaction Type | Reporting Threshold |
|---|---|
| Savings account cash deposits | ₹10 lakh with PAN |
| Savings account cash deposits without PAN | ₹5 lakh |
| Current account cash transactions | ₹50 lakh |
| Fixed deposits | ₹10 lakh or more |
| Insurance premium | ₹5 lakh with PAN |
| Property transactions | ₹45 lakh or more |
| Credit card cash payments | ₹1 lakh or more |
| Credit card online payments | ₹10 lakh or more |
| Shares, bonds and debentures | ₹10 lakh or more |
2. Match Form 16, Form 26AS and TDS Properly
Many taxpayers file ITR using only Form 16. This is risky because the department mainly verifies tax credit through Form 26AS and deductor reporting.
If Form 16 shows higher TDS but Form 26AS shows lower TDS, the department may allow credit only as per Form 26AS. In such cases, the employer or bank should correct the TDS reporting before filing.
| Mismatch | Possible Issue |
|---|---|
| Form 16 TDS not appearing in 26AS | Refund may reduce |
| Bank TDS missing | Demand may arise |
| Wrong PAN in TDS return | TDS credit may be denied |
| Duplicate or wrong entries | Processing delay |
3. Choose the Correct Tax Regime
Selecting the wrong tax regime may increase your tax liability. Compare both old and new tax regimes before filing.
| Taxpayer Type | Regime Flexibility |
|---|---|
| Salaried taxpayers / pensioners filing ITR-1 | Can generally change year-to-year |
| Business or presumptive taxation cases filing ITR-3 / ITR-4 | Rules are stricter; Form 10-IEA may be relevant |
4. Report All Bank Accounts Correctly
Bank account disclosure is important, especially for taxpayers filing ITR-3 and ITR-4. Report all Indian bank accounts and verify credit-side receipts such as salary, rent, pension, interest, FD interest, loans received and UPI/NEFT/IMPS receipts.
Important: Bank balance does not include credit card balance and FD balance. These may need separate reporting or reconciliation.
5. Reconcile High-Value Investments and Non-Cash Transactions
High-value investments and financial transactions should be properly reconciled with AIS/TIS. Purchases of shares, bonds and debentures above ₹10 lakh may be reportable. Share market turnover, F&O transactions and unlisted share transactions must also be checked carefully.
Even if transactions result in a loss, they should be reported correctly where applicable.
6. Check Other Mandatory ITR Filing Conditions
Even if your income is below the basic exemption limit, ITR filing may still be required in certain cases.
| Condition | Threshold |
|---|---|
| Business sales | ₹10 lakh or above |
| Foreign travel expenditure | ₹2 lakh or more |
| Electricity bill payment | ₹1 lakh or more |
| TDS/TCS for non-senior citizen | ₹25,000 or more |
| TDS/TCS for senior citizen | ₹50,000 or more |
| Foreign income or assets | Mandatory disclosure |
| Carry forward of loss | ITR filing required |
New and Expanded Details in ITR Forms
For FY 2025-26, taxpayers should also check new or expanded reporting requirements.
- Contact information: Secondary mobile number, email ID and address details may be required.
- Two house properties: ITR-1 and ITR-4 now allow reporting of two house properties.
- 80G donation details: UPI reference number, IMPS/NEFT/RTGS details, cheque number and IFSC may be required.
- Political donations: Political party name and PAN of donee may be required.
Common Mistakes to Avoid
| Mistake | Possible Consequence |
|---|---|
| Filing before AIS/TIS update | Mismatch notice |
| Using only Form 16 | Missing income or TDS |
| Ignoring FD interest | Tax demand |
| Wrong tax regime selection | Higher tax |
| Not reporting trading turnover | Defective return risk |
| Ignoring large bank credits | Scrutiny risk |
| Late filing | Loss carry-forward denial |
Final Checklist Before Filing ITR
- Check AIS and TIS properly.
- Match Form 16 with Form 26AS.
- Verify salary, interest, rent and capital gains.
- Compare old and new tax regimes.
- Report all bank accounts correctly.
- Check high-value transactions.
- Review trading, F&O and investment transactions.
- Keep proof for deductions and exemptions.
- Select the correct ITR form.
Conclusion
Income Tax Return filing for FY 2025-26 should not be treated as a routine formality. Filing early without checking AIS, TIS, Form 26AS, bank entries and investment transactions can create avoidable problems.
A carefully verified ITR can save you from unnecessary notices, refund delays, penalties and future revisions. Before filing, take time to reconcile all records and file only after your financial information is properly checked.
FAQs
1. Should I file ITR before AIS updates fully?
It is better to wait until AIS/TIS and major SFT entries are reasonably updated to avoid mismatch issues.
2. Is Form 16 enough for filing ITR?
No. You should also check Form 26AS, AIS, TIS, bank interest, capital gains and other income details.
3. Can wrong tax regime selection increase tax?
Yes. Selecting the wrong regime may increase your tax liability, especially if you have deductions or exemptions.
4. Should trading losses be reported?
Yes. Trading losses, F&O transactions and share market turnover should be reported correctly wherever applicable.
5. Why is Form 26AS important?
Form 26AS is important because tax credit verification is mainly based on TDS and tax details available in department records.