The Income Tax Return (ITR) filing for 2026 has commenced, marking the beginning of the annual tax compliance process for individuals and businesses. According to reports from Goodreturns, the filing system has been activated, allowing taxpayers to begin submitting their returns for the financial year 2026. This launch represents the official start of the tax filing season for the current financial year.
Despite the official launch, tax experts and Chartered Accountants (CA) are advising taxpayers not to file their ITR before May 31. As reported by Goodreturns, this advisory comes despite the availability of the filing system. The primary concern centers around potential data discrepancies that could arise from incomplete or delayed updates to key tax documents, with experts warning that blindly relying on pre-filled forms may lead to mismatches with government records.
Tax experts emphasize that even small mismatches between ITR and Annual Information Statement (AIS) could trigger income tax notices. According to CA (Dr.) Suresh Surana, taxpayers should treat AIS as a reference point rather than the sole basis for filing returns, as the information may be incomplete, duplicated, or subject to reporting errors. The Income-tax Department is increasingly using automated data matching, artificial intelligence-based checks and system-driven verification to spot inconsistencies. As Surana explained, where turnover reported in GST returns is significantly higher than the turnover disclosed in ITR, the tax department may identify discrepancies through data matching mechanisms.
Several common errors can lead to tax notices during the filing process. Salary mismatches are among the most frequent issues, where salary income reported in ITR differs from Form 16, employer TDS filings, or AIS. Taxpayers often forget to report interest earned on savings accounts, fixed deposits, recurring deposits, or even income tax refunds, which are often reflected in AIS through bank reporting. Claiming extra TDS or TCS credit that does not match Form 26AS or AIS can delay refunds or invite clarification from the tax department. Large mutual fund investments, property purchases, sizeable credit card payments, foreign remittances, and stock market transactions are often visible in AIS and may raise red flags if they don't match declared income.
Experts recommend that taxpayers avoid filing returns in haste just because pre-filled forms look complete and take time to cross-check income, deductions, and tax credits. Taking a few extra minutes to reconcile AIS with actual financial records today may help avoid a tax notice tomorrow. For businesses and professionals, differences between GST returns and income declared in ITR may also attract scrutiny. The key is to ensure consistency between information reported in ITR and records already available with the Department, as incorrect computation or omission of capital gains could trigger inquiries.
