The Income Tax Department notifies different ITR forms each year to suit various categories of taxpayers, making correct form selection essential for timely refunds. According to CA Abhishek Soni, CEO & Co-founder of Tax2win, filing incorrect ITR forms can lead to multiple issues even with correctly reported income. The department may treat such returns as 'defective returns' under Section 139(9) of the Income Tax Act, potentially triggering notices, delayed refunds, or invalid returns if deadlines are missed.
Taxpayers filing incorrect ITR forms face several potential consequences that can significantly impact their refund process. As reported by Tax2win, incorrect form selection may result in notices from the Income Tax Department requiring correction within specified timeframes, usually 15 days. The refund process can be delayed until defects are corrected, and failure to respond within deadlines may result in returns being treated as invalid, with consequences including late filing fees, interest on unpaid tax, and loss of certain benefits like carrying forward capital losses.
While the ITR-1 and ITR-4 utilities have opened the filing season for Assessment Year 2026-27, tax experts recommend waiting until June 15, 2026 before filing. According to former IRS officer O.P. Yadav, many important statutory filings are still pending, including Form 16 for salary income and Form 16A for non-salary TDS that must be issued by mid-June. The Annual Information Statement (AIS) and Form 26AS may not yet reflect complete financial data, particularly affecting salaried individuals with multiple income sources where TDS credits may not be available.
Beyond form selection errors, other common mistakes can further complicate the refund process. According to the report, entering incorrect bank details or failing to verify returns can delay refunds by weeks. CA Abhishek Soni notes that incorrect form selection can also trigger scrutiny or additional queries from the department, especially for income types like capital gains, business income, foreign assets, or crypto income reported in the wrong form.
For Assessment Year 2026-27, ITR filing for individuals not subject to tax audit is due by 31st July 2026. As reported, missing this deadline allows filing of belated returns until 31st December 2026, but with late filing fees and interest applying to all belated submissions. The report emphasizes that these common mistakes are easy to fix provided taxpayers identify them early and take corrective action quickly.
