ITR Filing for FY 2025-26: Know How Filing Too Early Can Create Problems

As we all know, the ITR filing season for Financial Year 2025-26 has begun, and many taxpayers will file their returns early to avoid last-minute delays, but tax experts suggest that taxpayers should wait until 15 June to begin with their filing process, as the tax department usually updates several key tax documents such as Form 16, Form 26AS, and the Annual Information Statement (AIS) by mid-June.

The chances of mismatches in income or TDS details increase when filing returns before these records are fully updated. Waiting for the statements to be updated can help taxpayers in avoiding mismatches, ensuring proper credit of taxes deducted, and also giving enough time for deductors to correct any errors.

Form 16 is an important document for salaried taxpayers, as it contains details of salary income, exemptions, deductions, TDS deducted and tax computations. Without Form 16, taxpayers may have to depend on multiple payslips and separate documents, increasing the possibility of errors.

As May 31 is the due date for filing TDS returns for the fourth quarter, taxpayers are recommended to analyse Form 26AS after the end of this date to ensure that TDS details are properly reflected.

The Annual Information Statement (AIS) is also updated, like other key tax documents, as financial institutions, employers, and other reporting entities submit information to the Income Tax Department.

Experts also suggest that freelancers, consultants, investors, professionals and business owners should be cautious about filing returns too early.