Income Tax

ITR Filing AY 2026–27: 10 Things to Check Before Filing Your Income Tax Return

Filing your ITR for AY 2026–27? Check the right ITR form, AIS, TIS, Form 26AS, capital gains, foreign assets, tax regime, deductions and e-verification before filing.

20 August 2026 · By Taxomic Team

Filing your Income Tax Return is not simply about entering your income, calculating your tax and clicking “Submit”.

A properly prepared ITR should reflect your complete financial position for the year — including your income, investments, capital gains, deductions, tax credits and applicable disclosures.

For taxpayers filing their return for FY 2025–26, the applicable return is for Assessment Year 2026–27 and is governed by the Income-tax Act, 1961.

With AY 2026–27 ITR utilities now available on the Income Tax e-Filing portal, this is a good time to review your information carefully before filing.

Whether you are a salaried employee, investor, freelancer, professional, NRI, founder or business owner, here are 10 important checks to complete before submitting your ITR.

First: AY 2026–27 vs Tax Year 2026–27 — What Is the Difference?

This year, many taxpayers are confused because the Income-tax Act, 2025 has introduced the concept of a “Tax Year”.

The distinction is actually straightforward.

Income earned during FY 2025–26

1 April 2025 to 31 March 2026

↓

Assessment Year 2026–27

↓

Return governed by the Income-tax Act, 1961

Income earned from 1 April 2026

1 April 2026 to 31 March 2027

↓

Tax Year 2026–27

↓

Governed by the Income-tax Act, 2025

In simple terms: if you are currently filing the return for income earned between 1 April 2025 and 31 March 2026, you are filing your AY 2026–27 ITR.

1. Make Sure You Are Filing the Correct ITR Form

Choosing the correct ITR form is the first step.

The applicable form depends on your residential status, income sources, investments and whether you have business or professional income.

Here is a simplified overview of the commonly used ITR forms:

ITR Form	Broad Applicability
ITR-1 (Sahaj)	Eligible resident individuals meeting the specified conditions and having specified sources of income.
ITR-2	Individuals/HUFs who are not eligible for ITR-1 and do not have business or professional income.
ITR-3	Individuals/HUFs having business or professional income who are not eligible for another applicable form.
ITR-4 (Sugam)	Eligible individuals, HUFs and firms other than LLPs using specified presumptive taxation provisions.

This is a simplified overview. Each ITR form has detailed eligibility conditions, exclusions and reporting requirements.

Do not simply use the ITR form you used last year.

Your circumstances may have changed.

You started freelancing.
You started a business or profession.
You sold shares or mutual funds.
You received RSUs or ESOPs.
You invested overseas.
Your residential status changed.
You purchased or sold property.

Any of these circumstances may affect the appropriate ITR form.

2. Do Not Rely Only on Form 16

For salaried taxpayers, Form 16 is an important document — but it may not represent your complete financial picture.

Before filing, consider reconciling your information with:

Form 16
Form 16A
Annual Information Statement (AIS)
Taxpayer Information Summary (TIS)
Form 26AS
Bank statements
Interest certificates
Dividend statements
Broker statements
Mutual fund statements
Capital-gain statements
Other relevant financial records

For example, your Form 16 may correctly show your salary, but it may not capture all the interest, dividends, capital gains, freelance income or other taxable receipts you received during the year.

Your ITR should reflect your complete financial picture — not just your Form 16.

3. Check AIS, TIS and Form 26AS

Before filing your return, compare the information available with the Income Tax Department against your own financial records.

Look for information relating to:

Interest
Dividends
Securities transactions
TDS and TCS
Tax payments
Specified financial transactions
Refunds and demands
Other reported information

Do not blindly copy everything appearing in AIS.

If you identify information that is incorrect, duplicated or does not relate to you, investigate the discrepancy and take appropriate action before finalising your return.

4. Reconcile Your Capital Gains

This is particularly important if you invested in or sold:

Listed shares
Equity mutual funds
Debt mutual funds
ETFs
Bonds
Sovereign Gold Bonds
Other securities
Property or other capital assets

Do not assume that downloading a capital-gains statement automatically means your ITR is correct.

Review the complete transaction trail:

Purchase → Sale → Holding Period → Cost → Sale Consideration → Applicable Tax Treatment

If you have made hundreds of transactions during the year, even a small reconciliation issue can affect your final tax computation.

Taxomic Tip:

Keep your broker or investment-platform capital-gain statement and reconcile it with the transactions used for preparing your ITR.

5. Review Foreign Assets and Foreign Income

This section is particularly relevant for:

NRIs and returning residents
Employees receiving RSUs or ESOPs
Individuals holding foreign shares
Overseas bank-account holders
Individuals receiving foreign dividends
Individuals holding other overseas investments

Foreign assets and foreign income can involve specific reporting and disclosure requirements.

Do not assume that an overseas investment can be ignored simply because the amount is small.

The reporting requirement and the amount of income involved are separate questions.

If you have foreign investments, review the applicable disclosure requirements carefully before filing.

6. Compare the Old and New Tax Regimes

Do not select a tax regime simply because:

“My friend saved more tax under it.”

Your result depends on your own circumstances.

Consider factors such as:

Salary and other income
House rent
Home-loan interest
Eligible Section 80C investments
Health-insurance premiums
NPS contributions
Eligible donations
Other applicable deductions
Nature of income
Business or professional income

The right approach is to compare the applicable regimes using your own numbers.

For individuals having business or professional income, additional provisions may apply regarding opting for or changing the tax regime and the prescribed Form 10-IEA requirements.

7. Verify Every Deduction You Claim

Common deductions may include:

Section 80C
Section 80D
Section 80CCD
Section 80G
Eligible home-loan-related deductions
Other applicable deductions

But there is an important distinction between:

“I made the payment.”

and

“I am eligible to claim the deduction.”

Before claiming a deduction, check:

Whether you are eligible.
Whether the payment qualifies.
Whether the applicable conditions are satisfied.
Whether you have supporting documentation.

Do not copy last year's deductions blindly.

8. Check All Other Sources of Income

Salary is only one possible source of taxable income.

Before filing, consider whether you received:

Savings-account interest
FD or RD interest
Dividends
Freelance income
Consulting income
Rental income
Capital gains
Foreign income
Business income
Other taxable receipts

Even if tax has already been deducted, the corresponding income may still need to be reported in the return.

A simple question to ask:

“Did money come to me during the year that is not reflected in my salary?”

If yes, investigate the applicable tax treatment before filing.

9. Reconcile TDS, TCS and Other Tax Payments

Before submitting your ITR, compare your final tax liability with the tax credits available to you.

Tax Liability

vs.

TDS + TCS + Advance Tax + Self-Assessment Tax + Other Applicable Credits

A mismatch can affect the amount of tax payable or refund.

Do not assume that because tax was deducted from your income, the corresponding tax-credit information is automatically correct.

10. E-Verify Your Return After Filing

Submitting your return is not necessarily the end of the process.

You also need to ensure that the return is properly verified.

The Income Tax Department currently provides electronic verification methods such as Aadhaar OTP, eligible EVC methods, net banking and DSC, subject to the applicable conditions.

Remember:

Prepare → Review → Submit → Verify → Preserve

Do not stop at:

“My return has been submitted.”

Check that the verification process has been completed successfully and preserve your acknowledgement and relevant records.

AY 2026–27 ITR Filing Checklist

Before you submit your return, run through this checklist.

Income

☐ Salary or pension checked
☐ Interest income checked
☐ Dividend income checked
☐ Rental income checked
☐ Business or professional income checked
☐ Capital gains checked
☐ Foreign income checked, where applicable

Information Reconciliation

☐ Form 16 checked
☐ Form 16A checked
☐ AIS checked
☐ TIS checked
☐ Form 26AS checked
☐ Bank statements reviewed
☐ Investment statements reconciled

Tax Planning

☐ Old vs New Tax Regime compared
☐ Deductions reviewed
☐ Supporting documents available
☐ TDS/TCS reconciled
☐ Advance tax checked
☐ Self-assessment tax checked, where applicable

Final Filing

☐ Correct ITR form selected
☐ Personal details checked
☐ Bank account details checked
☐ Refund details checked
☐ Tax payable/refund reviewed
☐ Return submitted
☐ Return e-verified
☐ ITR acknowledgement preserved

7 Common ITR Filing Mistakes to Avoid

1. Choosing the wrong ITR form

Your previous year's form may not be appropriate this year.

2. Assuming Form 16 contains everything

Other income and investments may not appear in Form 16.

3. Ignoring AIS discrepancies

Information appearing in AIS should be reviewed against your own records.

4. Missing capital gains

Selling investments can create tax-reporting requirements that should be reviewed before filing.

5. Ignoring foreign assets

Foreign investments can have specific disclosure implications depending on your circumstances.

6. Claiming deductions without checking eligibility

A deduction should satisfy the applicable conditions and be supported by appropriate records.

7. Forgetting e-verification

Submitting the return is not necessarily the final step. Make sure the return is properly verified.

Frequently Asked Questions

What is the difference between FY 2025–26 and AY 2026–27?

FY 2025–26 is the financial year in which the income was earned, from 1 April 2025 to 31 March 2026.

AY 2026–27 is the assessment year in which that income is reported and assessed.

Therefore, income earned during FY 2025–26 is reported in the AY 2026–27 return.

Do I need to file two returns because of the new Income-tax Act?

No. The transition to the Income-tax Act, 2025 does not mean that taxpayers need to file two returns for the same income.

The return for income earned during FY 2025–26 is filed as AY 2026–27.

Which ITR should a salaried person use?

It depends on the taxpayer's income and circumstances.

Eligible resident individuals meeting the specified conditions may use ITR-1. Individuals or HUFs who are not eligible for ITR-1 and do not have business or professional income may generally fall under ITR-2. Individuals or HUFs with business or professional income may need ITR-3 or, where eligible, ITR-4.

Is Form 16 enough for filing an ITR?

No.

Form 16 primarily provides salary and TDS information from your employer. Other income, investments, capital gains, foreign income and other relevant information should also be reviewed.

Should I check AIS before filing?

Yes.

AIS and other tax information should be reconciled with your own financial records before finalising the return.

Do I need to report foreign investments?

Depending on your residential status, nature of investment and other circumstances, foreign assets and income may have specific disclosure requirements.

If you hold foreign shares, RSUs, overseas accounts or other foreign investments, review the applicable reporting requirements before filing.

Should I choose the Old or New Tax Regime?

There is no universal answer.

Compare the applicable tax regimes using your actual income, deductions and circumstances rather than relying on someone else's tax outcome.

How should I complete my ITR filing process?

A useful process is:

Prepare → Reconcile → Review → Submit → Verify → Preserve

Final Takeaway

Your Income Tax Return should not be treated as a formality that you complete just before the deadline.

It is a yearly snapshot of your:

Income. Investments. Tax position. Financial decisions. Disclosures.

Before filing your AY 2026–27 return, take the time to make sure the information is:

Complete.
Accurate.
Reconciled.
Supported.
Properly disclosed.

A few additional minutes of review today can help you avoid unnecessary complications later.

Need Help With Your ITR?

Taxomic helps individuals, founders and growing businesses with:

Whether you need help filing your return or want a broader review of your tax and financial position, our approach is focused on practical advice, compliance and better financial decision-making.

Filing is compliance. Understanding your finances is strategy.

Explore Taxomic's ITR & Tax Advisory Services →

Disclaimer: This article is intended for general informational purposes only and does not constitute individual tax, legal or financial advice. Tax treatment depends on the specific facts and circumstances of the taxpayer. Taxpayers should refer to the latest applicable provisions, forms, rules, notifications and guidance issued by the Income Tax Department before filing their return.