ITR 2025-26: File Only After Complete TDS Data Available
With the opening of Assessment Year 2025-26, the income tax return (ITR) filing window is now active, leading to a surge in early submissions by taxpayers across India. Although the filing process has become more streamlined through digital platforms, chartered accountants (CAs) advise caution, noting that filing too early may lead to avoidable errors.
A notable surge in activity has been observed, particularly among salaried individuals, many of whom are choosing to file their returns soon after the government portal went live. The Income Tax Department, through its online filing system, continues to simplify compliance by offering pre-filled forms and faster submission processes.
ITR-1 Continues to Be the Most Commonly Used Form
According to the Institute of Chartered Accountants of India, the ITR-1 (Sahaj) form continues to be the most widely used. It is designed for salaried taxpayers with relatively simple income structures, including salary income, income from a single house property, and interest earnings.
Its simple and user-friendly format makes it the preferred choice for many small taxpayers, especially salaried individuals without complex investments or multiple sources of income.
Chartered Accountants Advise Waiting for TDS Updates
Although filing is straightforward, tax professionals advise salaried individuals not to rush. The deadline for TDS returns is May 31. After this date, key documents such as Form 26AS and the Annual Information Statement (AIS) are updated in the system.
Tax professionals advise waiting until Form 26AS and AIS are fully synchronised before filing returns. Filing early can cause mismatches between reported income and tax credits, which may trigger automated notices u/s 143(1) and require a revised return. Ensuring data alignment helps avoid unnecessary corrections, extra compliance work, and potential scrutiny.
Tax practitioners note that filing an ITR before TDS/TCS data is finalised often results in corrections and the need to file a revised return. This creates additional administrative work and delays, as taxpayers must repeat the filing process once Form 26AS and the Annual Information Statement (AIS) are updated.
Why Verifying Financial Documents Is Important
Chartered Accountants emphasise the importance of conducting a thorough reconciliation process before submitting an Income Tax Return (ITR). Taxpayers are strongly advised to perform a three-way match among their key documents, such as Form 16, bank statements, and investment certificates, and the department’s digital records, including Form 26AS and the Annual Information Statement (AIS). This meticulous cross-verification helps ensure that the taxpayer’s disclosures are fully consistent with the data maintained in the tax department’s automated systems, reducing the risk of discrepancies and potential notices.
Professionals caution that errors at this stage can create discrepancies, potentially triggering notices or necessitating corrections after filing.
Learn More About the Evolving Digital Filing System
In India, the Income Tax Department’s e-filing portal has seen continuous upgrades in recent years, focusing on enhanced user-friendliness and automation. As a result, the introduction of pre-filled data, based on taxpayers’ reported income and deductions, has significantly reduced manual input and made the compliance process simpler and more efficient for many users.
As a result, many salaried individuals are now increasingly able to complete their tax filings remotely without professional assistance, especially in straightforward cases.
Benefits of Filing on Time
Filing tax returns within the designated deadlines is crucial for several reasons. While it’s important to be mindful of timing, experts highlight that adhering to these deadlines provides a range of benefits. These advantages include avoiding penalties, smoother processing of loan and visa applications, and maintaining accurate financial records, all of which can be beneficial for future financial needs.
Read Also: How Income Tax Software Assists Taxpayers After the Filing?
Experts consistently stress the importance of prioritising accuracy over speed in the tax filing process. They note that filing a correct return, after gathering all necessary information, helps minimise errors, reduces the risk of complications, and ensures compliance with tax regulations.