For most individual taxpayers, the deadline to file income tax return (ITR) for FY 2025-26 (AY 2026-27) is July 31, 2026. While the income tax portal technically opens on April 1, actual return filing usually begins only after the backend systems and forms are fully updated and stabilised. As a result, ITR filing activity typically gains pace around mid-May each year.
Although filing early is considered a good practice, tax experts have advised people not to rush into submitting returns before June 15. During the initial weeks of the filing season, certain tax documents and statements may still be getting updated. If you miss out on these updated details, then you income tax filing can be flagged as incorrect.
What information gets updated by mid-June?
TDS details, interest income, and high value transactions reporting (SFT) are typically uploaded by employers, banks and financial institutions by 31 May, but the same may take another couple of weeks to fully reflect in Form 26AS, AIS and TIS and assess the correct picture, according to Nishant Shanker, a tax strategy expert and former senior manager of tax at EY.
“Another practical issue is that financial institutions and employers may subsequently revise or correct their filings. In many cases, revised , corrected interest reporting or updated securities transaction data flow into the system after the initial upload,” he said.
As a result, taxpayers filing too early may end up reporting incomplete income or claiming incorrect TDS credits, which could later trigger mismatch notices, refund delays or the need for filing revised returns.
Who should avoid filing ITR early?
According to Shanker, avoiding early becomes even more relevant for taxpayers having capital gains, multiple bank accounts, foreign assets, business income or substantial financial transactions. For such taxpayers, reconciliation of AIS, Form 26AS, Form 16/Form 16A and other transaction records becomes critical before filing the return.
Here’s a list of important data that usually gets fully updated by mid June:
- TDS entries in Form 26AS
- AIS (Annual Information Statement) updates
- SFT (Statement of Financial Transactions) reporting
- Bank interest reporting
- Dividend income reporting
- Mutual fund and stock transaction reporting
- Revised TDS returns by employers or deductions
“Today, income tax scrutiny is largely system-driven. If the income reported in the ITR does not match AIS, Form 26AS, or SFT data that gets updated later, the system may flag the return,” Shanker said.
Why you should not blindly rely on AIS? Experts weigh in
While AIS is a good guide, it shouldn’t be relied on as a final document as there are many areas where the data may be incomplete, duplicated, or incorrectly classified, according to Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.
This may be especially true in the case of transactions in the stock market and reporting of capital gains. “AIS may report the gross sales of trading in shares and mutual funds, but it may ignore purchase cost, grandfathering, and corporate actions like stock bonus and stock splits, when reporting the actual, reportable, taxable gains,” he said.
He added that there is a need for frequent manual adjustments for the case of intraday trading and , hence in these cases too, it is imperative for taxpayers to not rely solely on AIS. “There is a need to verify it with Form 16 and the reports and statements of the broker, bank, mutual funds, and certificate of interest. This documentation is required before filing the return,” he advised.
What guidelines should taxpayers follow to ensure accurate income reporting in ITR?
Before filing ITR, taxpayers should ideally:
- Reconcile AIS, Form 26AS, Form 16, and bank statements
- Verify all TDS credits carefully
- Match capital gains with broker reports
- Check carry-forward losses from earlier years
- Review deductions claimed under Chapter VI-A
- Verify exempt income disclosures
- Ensure foreign asset disclosures are complete where applicable
- Validate bank account details for refund purposes
- Review turnover and GST reconciliation for businesses/professionals
- Keep supporting documentation ready in case of future queries
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