ITR filing 2026: 9 key checks for taxpayers

The process begins with selecting the correct ITR form, with simplified options like ITR-1 and ITR-4 having specific eligibility conditions. Incorrect form selection can lead to a defective return, potentially becoming invalid and resulting in a belated return with loss of benefits and penalties.

Reconciliation of financial data from sources like the Annual Information Statement (AIS), Form 26AS, and Form 16 with personal financial records is critical. This step helps identify and rectify reporting errors, omissions, or duplications to ensure accurate income reporting and avoid under or over-reporting.

Taxpayers must report all income under the correct heads, regardless of whether it appears in pre-filled data. Particular attention is needed for income against which tax has been deducted at source (TDS), ensuring the TDS credit aligns with the reported income.

Disclosure of exempt income is also important, even if not taxable, to maintain consistency between financial profiles and reported income, thereby preventing compliance queries. Finally, all claimed exemptions and deductions must be legally admissible and supported by adequate documentation to avoid potential tax demands and penalties.