Precautions Mandatory in ITR Tax Returns

Income Tax Return (ITR) filing for the Assessment Year 2026-27 has begun. Taxpayers are advised to carefully verify key details before filing returns, as errors may lead to delayed refunds, tax demands, penalties, compliance alerts, and notices from the Income Tax Department.

Taxpayers must choose the correct ITR form based on income category and nature. Individuals and businesses with income below ₹50 lakh and without audit requirements can file ITR-1 (Sahaj) or ITR-4 (Sugam). However, foreign income or certain losses require different forms. Mismatch between filed data and pre-filled details such as Form 16, Form 26AS, and AIS may lead to scrutiny, higher tax liability, or penalties.

The department has also stressed accurate disclosure of exempt income, deductions, and bank account details. Even tax exempt income must be reported in returns. Taxpayers should ensure their bank accounts are active for refunds. Delays or incorrect filing may lead to interest charges, penalties up to 200 percent, and loss of exemptions.