ITR Season Begins: Experts Recommend Verifying Tax Records Before Filing Returns

As the Income Tax Return (ITR) filing season for FY 2025-26 (AY 2026-27) begins, taxpayers are preparing to collect essential financial documents and complete their return filing obligations. Although timely filing remains important, tax experts suggest that many taxpayers may benefit from waiting until after June 15 before submitting their returns. The due date for filing ITRs for the relevant assessment year is July 31, 2026.

A large number of salaried individuals often prefer to file their returns as early as possible to secure faster refunds and avoid last-minute compliance pressure. However, the availability of the return-filing utility does not necessarily mean that filing immediately is the best course of action for everyone.

According to OP Yadav, former Principal Commissioner of Income Tax, modern tax compliance relies heavily on the reconciliation of financial information from multiple sources. The tax administration system no longer depends solely on the details disclosed by taxpayers in their returns.

Today, information reported in an ITR is routinely matched with data submitted by employers, banks, mutual fund houses, stock brokers, registrars, financial institutions, and other reporting entities. Such verification is carried out through mechanisms including Tax Deducted at Source (TDS) statements and the Statement of Financial Transactions (SFT).

Given this extensive data-matching framework, taxpayers may find it prudent to wait until all relevant information is accurately reflected in tax records before filing their returns. Filing prematurely without ensuring complete reconciliation of income, deductions, taxes paid, and investment details could potentially lead to discrepancies, notices, or the need for subsequent corrections.