If you are a salaried taxpayer, it may be wise to wait till June 15 to file your Income Tax Return (ITR) for AY 2026-27, as AIS and Form 26AS generally continue to get updated till the first few weeks of June based on tax deducted at source (TDS) returns and statement of financial transaction (SFT) filings submitted by employers, banks, mutual funds, and other reporting entities by May 31.
“If taxpayers file too early, there is a possibility that certain income details or corresponding TDS credits may not have fully reflected in their tax records, increasing the chances of mismatches, queries, or even the need to revise the return later,” says Jignesh Shah, Partner, Direct Tax, Bhuta Shah & Co LLP.
If the return is filed before these statements are fully updated, taxpayers may inadvertently omit reporting certain incomes, such as bank interest, dividend income, capital gains, or may claim incorrect TDS credits. Such mismatches between the ITR and information available with the Income-tax Department may result in notices, revised tax demands, delays in refund processing, or the need to file a revised return later.
Waiting till mid-June also gives salaried taxpayers enough time to receive Form 16 from their employers, which is generally issued by June 15 after employers complete filing their quarterly TDS returns.
What key AIS, Form 26AS, or TIS updates usually happen in the first few weeks of June?
The information reflected in AIS, Form 26AS, and TIS is updated based on TDS returns and SFT filings submitted by tax deductors and reporting entities such as banks and companies. Since the due date for these filings is generally May 31, the Income-tax Department processes the data in the first few weeks of June and updates taxpayers’ statements accordingly.
As a result, salaried taxpayers may witness fresh entries relating to salary income, interest income, dividend income, securities transactions, purchase or sale of immovable property, mutual fund transactions and taxes deducted at source being reflected in these statements by mid-June.
“Salaried taxpayers will be in a better position to reconcile income details and identify any errors by waiting till these statements are updated,” Shah explains, adding that this also gives taxpayers time to coordinate with the relevant deductors in case corrections are needed.
What are the most common mistakes salaried taxpayers make when filing ITR before all data is updated?
A common mistake made by salaried taxpayers is filing their income-tax return in haste without reconciling the details reflected in AIS, Form 26AS and TIS. Since these statements continue to get updated in June, taxpayers may miss reporting certain incomes or claiming the correct amount of taxes deducted at source (TDS).
Typically, omissions relate to accrued bank interest, dividend income, capital gains from securities transactions, interest on income-tax refunds and other financial transactions reported by banks, mutual funds and companies. In some cases, taxpayers also claim incorrect TDS credits due to incomplete reflection of data at the time of filing.
Such inconsistencies between the return filed and the information available with the Income-tax Department may lead to notices, revised computations or delays in processing of refunds. Hence, taxpayers should wait for the statements to be updated and reconcile all information before filing their return.
What additional checks should salaried taxpayers do before filing ITR this year?
According to Niranjan Govindekar, Partner, Tax & Regulatory Services at BDO India, before filing their income-tax return, salaried taxpayers should undertake the following checks:
* Reconcile details reflected in AIS, Form 26AS and TIS with personal records, particularly salary, bank interest, dividend income, capital gains and TDS credits.
* Cross-check Form 16 and ensure that all deductions, exemptions and other sources of income are correctly reported.
* Review AIS/TIS for any incorrect or duplicate entries and submit an online response on the income-tax portal, wherever required.
* Evaluate whether the old tax regime or the new tax regime is more beneficial before filing the return.
* Ensure that all bank accounts are disclosed in the ITR, and the refund bank account is pre-validated on the income-tax portal.
Verify disclosure of exempt income, capital gains, unlisted shares, directorship in companies and foreign assets/income, wherever applicable, are correctly reflected in the tax return form, as inconsistency or incorrect reporting in these fields attracts enquiry and penal consequences may follow.
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws and regimes are subject to frequent changes by the government. Readers should verify details with official Income Tax Department notifications or consult a Chartered Accountant before making any financial decisions.
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