The deadline to file Income Tax Returns for Assessment Year 2026-27 is July 31. Taxpayers should review their returns carefully before submitting, as even minor mistakes can delay refunds or trigger notices.
The Income‑Tax Department now uses data analytics and automated checks to compare information from employers, banks, mutual funds and other institutions. This means discrepancies that were missed before are spotted much faster.
A common error is not reconciling income with the Annual Information Statement (AIS), Form 26AS and TDS certificates. If the figures do not match, the system flags the return and delays processing.
Mistakes in capital gains reporting are also frequent. Many taxpayers overlook bonus shares, rights issues, mutual fund redemptions or fail to apply grandfathering rules correctly. Such errors can lead to wrong tax calculations and may require a revised return.
Claiming deductions without meeting the required conditions or keeping supporting documents is another problem. If the department verifies the claim, proof must be supplied. Ineligible claims can increase tax liability and invite scrutiny.
Choosing the wrong ITR form or missing disclosure questions is common. Taxpayers must use the form that matches their income sources and residential status, and answer all disclosure questions accurately, including the reason for filing.
Chandni Anandan, Tax Expert at ClearTax, says common mistakes include wrong ITR form, missing income, ignoring AIS/Form 26AS mismatches, skipping exempt‑income disclosures, and filing without e‑verification. Small errors can lead to defective notices, delayed refunds or extra tax.
Skipping e‑verification or entering incorrect bank details can also stall refunds even if the return is correct.
Rakesh Goel, Lead Consultant at AQUILAW, notes that the department now relies on data analytics. Small inconsistencies trigger automated checks. He lists common failures: failing to reconcile income, misreporting capital gains, claiming deductions without eligibility, wrong form, incorrect disclosure answers, wrong bank details, or missing e‑verification.
With the deadline near, experts recommend reviewing all income sources, reconciling tax credits, selecting the correct ITR form, verifying bank details, and completing e‑verification. These simple steps help ensure faster refunds and avoid notices.
Make sure your return is error‑free before the July 31 deadline to avoid hassles.