[1] ITR utilities are live, but your tax data may still be incomplete
The Income Tax Department has released the ITR-1 and ITR-4 utilities for AY 2026–27, which is prompting many taxpayers to file returns sooner than later. However, many taxpayers mistakenly think that once the ITR utilities are available, all their tax information is fully updated as well. In reality, AIS, Form 26AS, and prefilled ITR details may still be missing key entries in the early filing season. This is especially risky for taxpayers with extra income sources like interest, rent, dividends, capital gains, or freelance income.
[2] Salary TDS details may not appear correctly before June
Employers must file March-quarter salary TDS returns in Form 24Q by May 31, 2026. Until these filings are processed, salary income and TDS credits may not fully reflect in AIS or Form 26AS. Many companies submit data close to the deadline, meaning employees filing early could end up using incomplete salary and tax deduction details in their returns.
[3] Banks and deductors may still be updating non-salary TDS data
TDS details for interest income, professional payments, dividends, and other non- salary income are also updated later. Banks and deductors file Form 26Q for the March quarter by May 31. Until these statements are processed, taxpayers may not see complete TDS credits in their records. Filing before these updates can create inconsistencies between filed returns and department records.
[4] Why waiting for Form 16 and Form 16A is important
Form 16 and Form 16A are key documents for verifying salary income, deductions, and TDS credits. Employers are required to issue Form 16 by June 15, 2026, while deductors issue Form 16A around the same period. These forms help taxpayers reconcile AIS, Form 26AS, and pre-filled return data properly before filing an accurate return.
[5] AIS can change significantly after SFT reporting updates
AIS is not updated only through TDS filings. High-value transactions are also reported through Statement of Financial Transactions (SFT) filings under Section 285BA. These include mutual fund investments, property purchases, securities trades, large deposits, and credit card payments. Since SFT filings continue till May- end, AIS may show additional entries later that were not visible during early filing.
[6] Filing ITR too early may lead to costly tax problems
An ITR filled too early with incomplete information can create several issues later. Taxpayers may face mismatch notices, refund delays, denial of TDS credit, tax demands, rectification proceedings, or the need to file revised returns. In many cases, correcting errors after filing becomes more time-consuming than simply waiting a few extra weeks for complete tax data to appear.
[7] AIS reconciliation has now become essential for taxpayers
Income-tax filing today is heavily driven by automated data matching and third-party reporting. Taxpayers should carefully reconcile AIS, Form 26AS, Form 16, Form 16A, and prefilled ITR information before submitting returns. The Income Tax Department increasingly relies on technology-based verification systems, making accurate reporting more important than simply filing early to beat the rush.
Source from: https://economictimes.indiatimes.com/wealth/tax/income-tax-return-filing-2026-6-important-reasons-taxpayers-should-wait-until-mid-june-for-ay-2026-27/ais-reconciliation-has-now-become-essential-for-taxpayers/slideshow/131303731.cms
