Perfect Your Personal Information
This may seem basic, but it's a common point of error. Double-check that your name, PAN, Aadhaar number, date of birth, and communication details (email and mobile number) are exactly correct. Any mismatch with your PAN records can cause your return to
be marked as defective or lead to processing delays. Also, ensure the bank account details provided are accurate and the account is pre-validated to facilitate a seamless refund, if one is due. An incorrect account number or IFSC code is a simple mistake that can significantly delay your refund.
Reconcile with Form 26AS, AIS, and TIS
Do not file your return based solely on your Form 16. It's crucial to cross-reference your income and Tax Deducted at Source (TDS) details with your Form 26AS (Tax Credit Statement), Annual Information Statement (AIS), and Taxpayer Information Summary (TIS). These documents, available on the e-filing portal, provide a comprehensive view of your financial transactions as reported to the Income Tax Department. Mismatches between what you declare and what the department sees are a primary trigger for tax notices. If you find discrepancies in your AIS, use the feedback option on the portal to correct them.
Choose the Correct ITR Form
The Income Tax Department has specified different ITR forms for different categories of taxpayers and income sources. For instance, a salaried individual with an income up to ₹50 lakh and one house property would typically use ITR-1. However, if you have income from capital gains or foreign assets, you might need to file ITR-2. Selecting the wrong form is one of the most frequent errors and will result in your return being treated as 'defective', requiring you to file a revised return within a specific timeframe.
Declare All Sources of Income
Many taxpayers inadvertently forget to report income from sources other than their salary. Make sure you have included interest earned from savings accounts and fixed deposits, dividend income, rental income, and any capital gains from the sale of stocks, mutual funds, or property. Even if TDS has been deducted, the income must be reported. The AIS now captures a wide range of these transactions, making it easier for the tax department to spot omissions.
Confirm Your Tax Regime Choice
For the financial year 2025-26, the new tax regime is the default option. Before submitting, confirm whether you have opted for the regime that is most beneficial for you. The new regime offers lower tax slabs but eliminates most deductions, while the old regime allows you to claim deductions like those under Section 80C, 80D, HRA, and home loan interest. A quick calculation to see which regime results in lower tax liability is a worthwhile final check. If you are claiming deductions under the old regime, ensure you have the necessary proofs.
Claim Every Eligible Deduction
If you've opted for the old tax regime, go through your investments and expenses one last time to ensure you haven't missed any eligible deductions. This includes contributions to PF, life insurance premiums, and ELSS under Section 80C; health insurance premiums under 80D; and donations under 80G. Forgetting to claim these can lead to a higher tax outgo than necessary. Be sure to have documentary proof for all deductions you claim.
Final Step: Don't Forget to E-Verify
Simply filing your return is not the end of the process. Your return is considered invalid if it is not verified. You have 30 days from the date of filing to e-verify your return. The quickest methods for e-verification include using an Aadhaar OTP, through your net banking portal, or via an Electronic Verification Code (EVC) generated through your bank account or demat account. This final step is mandatory and confirms that the data submitted is authentic and correct.
