Don't Miss the Deadline
For most individual taxpayers, including salaried employees and those who do not require a tax audit, the deadline to file your Income Tax Return (ITR) for the Financial Year 2025-26 (Assessment Year 2026-27) is July 31, 2026. While there is often speculation
about extensions, it is wise not to wait until the last minute. Missing this date can lead to consequences. Filing a belated return is possible until December 31, 2026, but it comes with a late filing fee. This fee is ₹5,000 for those with a total income above ₹5 lakh and ₹1,000 for those with income up to ₹5 lakh. Additionally, if you have any unpaid tax dues, an interest of 1% per month will be charged from the due date until you file.
Old vs. New Tax Regime: Choose Wisely
For AY 2026-27, the new tax regime is the default option. This regime offers lower tax rates with fewer deductions. However, you still have the option to switch to the old regime, which allows you to claim various deductions and exemptions like those under Section 80C (for investments), 80D (health insurance), and HRA. The choice depends on your financial profile. If you have significant investments and expenses that qualify for deductions, the old regime might be more beneficial. The new regime, with its simplified structure and a tax rebate making income up to ₹12 lakh effectively tax-free for many, is ideal for those with fewer deductions. You must make this choice before filing your return.
Gather Your Essential Documents
Being prepared is half the battle. Before you begin filing, make sure you have all the necessary documents in hand. This includes your PAN card, Aadhaar card (which must be linked to your PAN), and bank account details. For salaried individuals, Form 16 from your employer is crucial. Other key documents are your bank statements, interest certificates for your savings accounts and fixed deposits, and proofs for any deductions you plan to claim, such as premium receipts for insurance policies or donation receipts.
The Holy Trinity: Form 26AS, AIS, and TIS
Do not file your ITR without consulting three critical documents available on the income tax portal: Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS). Form 26AS is your tax passbook, showing details of tax deducted at source (TDS), tax collected at source (TCS), and any advance tax or self-assessment tax paid by you. The AIS is even more comprehensive, providing a statement of virtually all your financial transactions, including interest income, dividends, and securities transactions. The TIS is a summary of the AIS. It is mandatory to ensure the income you report in your ITR matches the information in your AIS to avoid receiving a notice from the tax department.
Report All Sources of Income
One of the most common mistakes taxpayers make is failing to report all their income sources. Your total income includes more than just your salary. You must declare income from other sources, such as interest earned on savings accounts and fixed deposits, rental income, dividends from shares and mutual funds, and capital gains from the sale of property or investments. Even income that is exempt from tax, like interest from a PPF account, often needs to be reported in the ITR for disclosure purposes. Full disclosure is key to compliance.
The Final Step: Don't Forget to E-Verify
Filing your return is not the final step. Your ITR is considered invalid until it is verified. You must verify your return within 30 days of filing. The easiest and quickest method is e-verification. This can be done through various modes, including using an Aadhaar-linked mobile number to receive an OTP, through your pre-validated bank account, or via your net banking portal. If you fail to verify your return within the 30-day window, it will be treated as if it was never filed, nullifying all your efforts and attracting the penalties for non-filing.
