The July 31 income tax return (ITR) filing deadline is approaching, but filing alone does not complete the process. According to reports from Mint, an ITR becomes valid only after e-verification, which triggers its processing by the Income Tax Department. Once e-verified, taxpayers can monitor the status of their return on the e-filing portal. Simple returns are generally processed within 45 days, but every ITR undergoes multiple validation and risk checks before acceptance. As reported by Tax2win, filing the return is only the first step - taxpayers must e-verify their ITR within the prescribed time, as the Income Tax Department treats returns as invalid if e-verification is not completed, making it appear as if the return was never filed.
The Annual Information Statement (AIS) has become a critical tool for taxpayers to review and correct errors before filing their ITR. According to ClearTax tax expert Chartered Accountant Shefali Mundra, discrepancies in TDS and interest income appear frequently, with duplicate entries being a common issue where the same transaction gets reported twice by different entities. The Taxpayer Information Summary (TIS) within AIS shows category-wise summaries with processed and accepted values, making it crucial to review and correct errors before ITR pre-population. When taxpayers spot errors in their AIS, they can use the feedback mechanism to correct incorrect transactions. The process involves selecting the appropriate feedback category - Information is not fully correct for wrong amounts, Duplicate information for multiple entries, Information relates to other PAN or year for transactions belonging to others, or Information is not taxable or Denied for transactions not belonging to the taxpayer. After submission, the department verifies feedback with reporting sources, taking 30 to 90 days for processing, with feedback status showing as Accepted or Rejected depending on verification outcomes.
According to Mint reports, the department compares income, TDS, and deductions reported with information available in Form 26AS, AIS, and TIS. Any mismatch may require further review. CA Anandan explained that the most important sources are AIS, Form 26AS, and TIS, along with the taxpayer's own books, salary details, bank statements, and TDS/TCS records. AIS captures a wide range of reported financial transactions, while Form 26AS focuses heavily on tax credits and deductions. Reconciliation helps ensure that income, credits, and tax paid all align before or during processing. Taxpayers must also closely review and reconcile capital gains reported in the AIS with statements from fund houses, brokers, and other intermediaries, especially where investments are held across multiple platforms. As reported by Tax2win, before filing, taxpayers should verify that income and TDS details in their ITR match the information available in Form 16, Form 26AS and the Annual Information Statement (AIS). Taxpayers must also closely review and reconcile capital gains reported in the AIS with statements from their fund houses, brokers, and other intermediaries, especially where investments are held across multiple brokers, mutual funds and securities platforms, or where corporate actions have impacted the computation of gains during the year.
Several common errors can lead to ITR filing delays or rejection ahead of the July 31 deadline. According to Tax2win, mismatch in PAN, Aadhaar, or personal details can cause validation errors during filing, even with small discrepancies stopping successful submission. Missing bank account details, incomplete schedules, incorrect IFSC codes, or other mandatory information can result in errors during validation and prevent ITR filing. Waiting until the last day increases the chances of facing portal slowdowns, login problems, OTP delays, or session timeouts due to heavy traffic. Filing a few days before the deadline gives taxpayers enough time to fix any errors and avoid submission failures. As reported by Tax2win, filing before the deadline is very important as taxpayers have to pay the penalty and lose some benefits if they miss the due date.
Once validation checks are complete, the return is processed and an Intimation under Section 143(1) is issued, as reported by Mint. If taxpayers fail to complete the process by July 31, they can file belated returns by 31 December, but face major repercussions including mandatory new tax regime, loss of business loss carry-forward rights, and late-filing fees of ₹5,000 (₹1,000 if income is less than ₹5 lakh). If missed even the December deadline, taxpayers can still file updated returns (ITR-U) within four years from the end of the relevant assessment year. If you spot any errors or omissions in original or belated returns, you can revise them by 31 March 2027. This year, the tax filing process is smoother compared to earlier years thanks to the Income Tax Department working to fix technical glitches and releasing tax forms for AY 2026-2027 earlier than last year, which helped spread out the load on the ITR e-filing system over a longer period.
