Verify All Personal Information
This may seem basic, but incorrect personal details are a common cause for processing delays and even return rejection. Double-check that your name, PAN, date of birth, address, mobile number, and email ID are all correctly entered and match your official
documents. Most importantly, confirm that the bank account you have selected for your refund is pre-validated. An incorrect or non-validated account is a primary reason for refund failure.
Choose the Right Tax Regime, One Last Time
For the Assessment Year 2026-27, the new tax regime is the default option. However, you still have the choice to opt for the old regime. Before you finalize, do a quick comparison. The old regime is beneficial if you have significant investments and expenses that qualify for deductions like HRA, home loan interest, and those under Section 80C and 80D. The new regime might be better if you have fewer deductions, as it offers lower slab rates. Use an online tax calculator to compare your liability under both scenarios one last time. This final check could save you a substantial amount of tax.
Reconcile with Form 26AS, AIS, and TIS
This is arguably the most critical check before filing. The Income Tax Department has comprehensive data on your financial transactions through the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). Download these forms along with your Form 26AS from the e-filing portal. Meticulously match the income and TDS (Tax Deducted at Source) details from your salary, interest income, capital gains, and dividend payments against these documents. Any mismatch between the income you declare and the data the department holds can trigger an automated notice.
Report All Sources of Income
It is a common mistake to report only salary income shown in Form 16. You must declare income from all sources. This includes interest earned from savings accounts and fixed deposits, dividend income, rental income from property, capital gains from selling stocks or mutual funds, and any freelance or business income. Even if some income, like savings bank interest up to ₹10,000, is eligible for a deduction, it must be reported first before the deduction is claimed.
Claim All Eligible Deductions Correctly
If you have opted for the old tax regime, ensure you have claimed all the deductions you are eligible for and have proof for them. This includes contributions to PPF, ELSS, insurance premiums under Section 80C, health insurance premiums under 80D, and interest on a home loan under Section 24b. Do not claim deductions for which you don't have valid documents, as this can lead to issues during assessment. Double-check the amounts to ensure they are entered correctly.
Calculate and Pay Final Tax Liability
After reporting all income and claiming all deductions, the portal will compute your final tax liability. If there is tax due, you must pay it as 'Self-Assessment Tax' before you can submit your return. Any delay in paying this tax attracts interest under Section 234A at 1% per month. Ensure you pay the outstanding amount and enter the challan details correctly in your ITR before proceeding.
Don't Forget to E-Verify Your Return
Simply submitting your ITR is not the end of the process. Your filing is considered incomplete and invalid until it is e-verified. You have 30 days from the date of filing to complete the verification. The easiest methods are through Aadhaar OTP or your net banking portal. Failing to verify your return is equivalent to not filing it at all and will result in all the consequences of non-filing, including a late fee.
