ITR Filing 2026: Don’t Rely Only on AIS and Form 26AS, Check These 5 Details Before Filing Return
The income tax return filing season for Financial Year 2025-26 has started, and taxpayers are preparing to submit their returns for Assessment Year 2026-27. While documents such as the Annual Information Statement (AIS) and Form 26AS are extremely important, tax experts caution that relying only on these two records may not be enough.
Many taxpayers file their ITR by simply copying the information shown in AIS and Form 26AS. However, this approach can lead to mistakes if certain income details, deductions, or financial transactions are missing, wrongly reported, or not properly matched with bank and investment records.
The Income Tax Department now uses advanced data analytics, artificial intelligence, and information received from banks, companies, mutual funds, registrars, property offices, and other institutions to track financial activities. Any mismatch between reported income and available data may attract scrutiny or even a tax notice.
Before filing your return, here are five important points every taxpayer should verify carefully.
1. Check Interest Earned from Bank Accounts and Fixed Deposits
Interest income is one of the most commonly missed items during ITR filing. Many taxpayers have multiple savings accounts, recurring deposits, or fixed deposits and often forget to include small interest amounts.
Before filing your return, compare the interest shown in AIS with your bank statements and interest certificates. In the case of fixed deposits, the bank may deduct TDS, but that does not mean the remaining amount is the only taxable income.
The full interest earned during the financial year must be reported in the return.
2. Report Gross Income, Not Just the Amount Received After TDS
A common mistake taxpayers make is reporting only the net amount credited to their bank account after TDS deduction.
For example, if tax has already been deducted on interest, dividend, professional fees, or any other income, the taxpayer still needs to report the total gross income before TDS. The TDS amount can then be claimed separately as tax credit.
If only the post-TDS amount is reported, the Income Tax Department may treat it as under-reporting of income.
3. Don’t Ignore Dividend Income and Large Cash Deposits
Dividend income from shares, mutual funds, or other investments must be properly disclosed in the return. Even small dividend amounts should not be ignored because companies and financial institutions directly report such details to the tax department.
Taxpayers should also keep a clear record of large cash deposits made during the year. If asked later, they may need to explain the source of the deposited amount.
Proper documentation can help avoid unnecessary questions from tax authorities.
4. Match Share, Mutual Fund, Business and Property Transactions
If you bought or sold shares, bonds, mutual funds, or other securities during the financial year, verify the details with broker statements, contract notes, capital gains reports, and bank records.
Capital gains must be reported correctly under the relevant section of the ITR form. Short-term and long-term gains should be calculated carefully.
Business owners and professionals should also match their income, expenses, bank entries, invoices, and books of accounts before filing the return.
Similarly, any purchase or sale of land, flat, house, or commercial property should be reported accurately, along with supporting documents.
5. Verify Foreign Income, Insurance Maturity and Tax Credits
Taxpayers who received income from outside India must report it properly. This may include foreign salary, professional fees, interest, dividend income, or income from overseas assets.
Those claiming foreign tax credit should keep all required documents ready.
Insurance maturity proceeds should also be checked carefully. Some policies may qualify for tax exemption, while others may become taxable depending on policy terms and premium limits. Taxpayers should keep policy documents and maturity statements safely.
Final Checklist Before Filing ITR
AIS and Form 26AS are useful documents, but they should not be treated as the only source of truth. Taxpayers must also verify bank statements, investment records, Form 16, interest certificates, dividend details, capital gains statements, property papers, insurance documents, and foreign income records.
Filing ITR after proper reconciliation reduces the chances of mistakes, refund delays, and tax notices. A careful review before submission can save taxpayers from future complications and ensure smoother return processing.
