Utility Availability Does Not Mean Tax Data is Complete

Many taxpayers assume that once the ITR utility is released, all their tax information is already available in records such as the Annual Information Statement (AIS), Form 26AS and pre-filled return forms. However, this is often not the case. Several statutory filings for the final quarter of FY 2025-26 may still be under processing during the initial weeks of the filing season.

This can be particularly important for individuals who earn income from sources other than salary, such as interest income, rental income, dividends, capital gains, or freelance and professional earnings. Filing before all this information is reflected in tax records could lead to omissions, incorrect reporting or problems in claiming tax credits.

Reporting Continues After the ITR Utilities are Released

The tax reporting process does not end when ITR filing utilities are released. Many taxpayers think they can file their returns immediately, but some important tax information may still be getting updated in the system.

1. Salary and TDS details may not be fully updated yet

For the March 2026 quarter, employers must file Form 24Q (salary TDS return) by May 31, 2026.

Until these returns are filed and processed:

• Your salary details may not appear completely in the Annual Information Statement (AIS).
• All your TDS credits may not be visible.
• Form 26AS may not show the latest information.
• The pre-filled details in your ITR may be incomplete.

Since many employers file these returns close to the deadline, employees who file their tax returns too early may do so before their final salary and TDS information is updated.

2. TDS on other income may also be missing

The same issue can happen with income other than salary, such as the following:

• Interest from bank deposits
• Professional fees
• Commission or other payments

Banks and other organizations that deduct TDS must file Form 26Q for the January-March 2026 quarter by May 31, 2026.

Until these filings are processed:

• Details of such income may not appear completely in AIS or Form 26AS.
• Some TDS credits may be missing.

As a result, if you file your ITR too early, the income and TDS details reported in your return may not match the information that appears later in AIS and Form 26AS after the deductors complete their filings.

Forms 16 and 16A Are Yet To Be Received

Another important point for taxpayers is that key TDS-related documents, such as Form 16 and Form 16A, become available only after the completion of the TDS reporting cycle. As per Rule 31, employers must issue Form 16 to employees by June 15, 2026, while Form 16A for non-salary payments deducted in the last quarter of FY 2025-26 must also be provided by mid-June.

These forms help you check and match:

• How much income was reported during the year
• How much TDS can you claim as a credit
• Which tax deductions are you eligible for
• Whether the information in your AIS (Annual Information Statement) is correct
• Whether the details in Form 26AS match your records

OP Yadav points out that waiting until these forms are available and verifying all the information can help avoid errors and extra compliance work later.

SFT Reporting May Change AIS Data

The Annual Information Statement (AIS) is not updated only through TDS details. It also includes information reported under the Statement of Financial Transactions (SFT) rules under Section 285BA.

Banks, mutual funds, registrars, and other specified entities must file SFT reports by May 31, 2026, covering high-value transactions such as the following:

• Mutual fund investments
• Purchase and sale of shares and securities
• Property purchases and sales
• Credit card expenses
• Large cash deposits and fixed deposits
• Major banking transactions
• Interest income
• Capital gains transactions

Until these reports are filed and reflected in the system, your AIS may not show all your financial transactions for the year.

This is important because the Income Tax Department increasingly uses data analytics and automated systems to compare information reported by taxpayers with data received from third parties. Any mismatch can attract scrutiny.

Filing early may create problems

Filing your tax return as soon as the utilities are released may seem like a good idea, but filing too early can sometimes create unnecessary problems.

If all your tax information has not been updated yet, you may face issues such as:

• Notices due to data mismatches
• Missing out on the full TDS credit
• Delays in receiving refunds
• Additional tax demands
• The need to file rectification requests
• Having to revise the return later

In many cases, taxpayers spend far more time correcting mistakes in a hurriedly filed return than they would have spent waiting for the tax data to be fully updated.

However, waiting for complete and accurate information should not be confused with delaying filing beyond the due date. Missing the deadline can lead to the loss of certain tax benefits, including the option to switch tax regimes where permitted, says OP Yadav.