Reconcile with AIS, TIS, and Form 26AS
Before you hit submit, the most critical step is to cross-verify your income details with the official tax documents available on the e-filing portal. Your Form 16, provided by your employer, is just one piece of the puzzle. You must also download your Annual
Information Statement (AIS), Taxpayer Information Summary (TIS), and Form 26AS. These documents contain a comprehensive record of your financial transactions throughout the year, including interest from savings accounts and fixed deposits, dividend income, and sale of securities. Any mismatch between the income you declare and the data in your AIS is a primary trigger for tax notices. Ensure that every entry in these forms is accounted for in your return.
Report All Sources of Income
A common mistake salaried individuals make is reporting only their salary income as detailed in Form 16. Your total taxable income includes earnings from all sources. This means you must declare interest earned from every bank account, including dormant ones, and fixed deposits. Other common income sources to report are dividends from shares or mutual funds, rental income from property, and any capital gains from selling assets like stocks or property. Even exempt income, like interest from a PPF account, should be reported in the appropriate schedule for complete transparency.
Confirm Your Tax Regime Choice
For the Assessment Year 2026-27, you can choose between the old and new tax regimes. While the new regime is the default option, salaried individuals can switch between them each year. The decision depends entirely on your financial situation. The old regime is beneficial if you have significant deductions to claim, such as those under Section 80C (EPF, PPF, life insurance), 80D (health insurance), and for home loan interest. The new regime offers lower tax rates but forgoes most deductions. If the tax difference is minimal, the simplicity of the new regime might be more appealing. Use an online tax calculator to compare your liability under both regimes before making your final choice.
Verify All Deductions Claimed
If you've opted for the old tax regime, double-check every deduction you have claimed. Ensure you have the necessary proofs for all investments and expenses, such as rent receipts for HRA claims, investment statements for 80C, and premium payment receipts for 80D. A frequent error is claiming HRA without a valid rental agreement or failing to provide the landlord's PAN if the annual rent exceeds ₹1 lakh. Also, remember to claim the deduction for interest earned on savings accounts under Section 80TTA (up to ₹10,000). Claiming deductions for which you are not eligible or don't have proof can lead to scrutiny.
Check Personal and Bank Details
Incorrect personal information can cause major hassles. Verify that your PAN, Aadhaar number, name, date of birth, and contact details are accurate. Most importantly, recheck the bank account details you've provided for receiving your refund. The account number and IFSC code must be correct, and the account must be pre-validated on the income tax portal. An invalid or incorrect bank account is one of the main reasons for delayed tax refunds. Ensure you have nominated a validated account for the refund to be credited smoothly.
Select the Correct ITR Form
Filing the wrong ITR form can render your return 'defective'. For most salaried individuals with income up to ₹50 lakh and no capital gains, ITR-1 (Sahaj) is sufficient. However, if you have any income from capital gains (e.g., from selling mutual funds or stocks), have more than one house property, or have foreign income/assets, you will need to file ITR-2. If you have income from a business or profession, you will need to use ITR-3 or ITR-4. Carefully assess your income sources for the year to ensure you are using the correct form.
