As the income tax return (ITR) filing season for FY 2025–26 begins, many taxpayers may feel tempted to file their returns early to avoid last-minute rush and delays. However, tax experts often advise waiting until at least June 15 before starting the filing process.
This is because several crucial tax documents, including Form 16, Form 26AS, and the Annual Information Statement (AIS), are usually updated or issued by mid-June. Filing returns before these records are fully updated can increase the chances of mismatches in income or TDS details, potentially leading to notices, scrutiny, or additional compliance requirements from the Income Tax Department.
Why do tax experts recommend waiting until June 15 before filing ITR, and what key documents or data are usually updated by then?
Tax experts generally recommend waiting until around June 15, as Form 16 is typically issued to employees by that date, following the end of the financial year. For FY 2025–26, employers are expected to issue Form 16 by 15 June 2026.
“Form 16 is an important reference document for salaried taxpayers as it contains consolidated details of salary income, exemptions, deductions, TDS deducted, and tax computations. Using Form 16 helps ensure accuracy while filing the ITR. Without Form 16, taxpayers may have to rely on scattered records such as multiple payslips and separate documents, increasing the possibility of errors or omissions,” an tax expert said.
When are Form 16, AIS, and Form 26AS generally updated or issued?
Form 16 is generally issued by employers on or before 15 June of the financial year following the relevant financial year.
“Form 26AS gets updated once deductors file their TDS returns. Since the due date for filing TDS returns for the fourth quarter is generally 31 May, taxpayers are advised to review Form 26AS after this date to ensure that TDS details are properly reflected,” Anandan said.
Similarly, the Annual Information Statement (AIS) is updated progressively as financial institutions, employers, and other reporting entities submit information to the Income Tax Department.
What kind of notices or compliance issues can taxpayers face if they file returns before Form 16, AIS, or Form 26AS are fully updated?
Form 16, AIS, and Form 26AS collectively reflect the income and tax details available with the Income Tax Department. If the figures reported in the ITR do not match these records, it may result in discrepancies that could trigger notices, scrutiny, or requests for clarification.
Tax experts suggest filing the return before these statements are fully updated increases the risk of mismatches, especially if revised or additional information is later reflected in AIS or Form 26AS. Such inconsistencies may lead to avoidable compliance issues and additional follow-up from the tax department.
Apart from salaried individuals, which categories of taxpayers should be especially careful about filing too early, and why?
Experts suggest taxpayers such as freelancers, consultants, investors, professionals and business owners should also be cautious about filing returns too early, particularly where TDS details are expected to appear in Form 26AS or AIS.
Waiting until the statements are reasonably updated can help taxpayers avoid mismatches, ensure proper credit of taxes deducted, and provide sufficient time for deductors to correct any reporting errors.
