ITR filing FY 2025-26: Top reasons salaried taxpayers should wait till mid-June to file income tax returns

Just because the return-filing utility is available, does it automatically mean the return should be filed immediately? (AI image)

ITR filing FY 2025-26: It’s that time of the year when you start gathering your important tax-related documents to file your income tax return (ITR). And while it’s always good to file your ITR on time, it may be prudent not to do so before June 15. The last date to file income tax returns for FY 2025-26 (AY 2026-27) is July 31, 2026. Many salaried taxpayers are already gearing up to submit their returns, hoping to finish the process early, receive refunds sooner or avoid the usual rush closer to the deadline. But before rushing to file, there is one crucial question taxpayers should consider.Just because the return-filing utility is available, does it automatically mean the return should be filed immediately? For a large number of taxpayers, the answer may well be no.Over the years, income-tax filing has become increasingly dependent on data reconciliation, notes OP Yadav, former Principal Commissioner of Income Tax in a column in ET. Tax returns are no longer assessed solely on the basis of what a taxpayer reports. Information is constantly cross-verified against data submitted by employers, banks, mutual funds, brokers, registrars, financial institutions and other reporting entities through TDS filings and Statement of Financial Transactions (SFT) reporting.This is why filing a return too early can sometimes lead to unnecessary issues later.

Availability of the utility does not mean all tax data is in place

A common misconception among taxpayers is that once the ITR utility is released, all related tax information has also been fully updated. In many cases, taxpayers overlook the caveats relating to AIS, Form 26AS and pre-filled return data.At the start of the filing season, several statutory filings for the final quarter of FY 2025-26 are often still under process. As a result, key records such as the Annual Information Statement (AIS), Form 26AS and pre-populated return details may not yet capture the complete set of financial transactions for the year.This becomes especially important for salaried individuals who earn income from sources other than salary, including:

In such cases, filing a return solely because the utility is available could lead to omissions in income reporting, mismatches in tax records or even difficulties in claiming the correct tax credit.

The reporting process continues even after ITR utilities are released

A key point many taxpayers miss is that the release of ITR filing utilities does not mark the completion of the tax reporting cycle. Several important disclosures continue to flow into the tax system weeks after the utilities become available, says OP Yadav.1. Salary-related TDS information may not be fully updatedFor the quarter ending March 2026, employers are required to submit Form 24Q, the quarterly salary TDS statement, by May 31, 2026. Until these filings are uploaded and processed by the tax department:

Since many companies file these returns closer to the deadline, employees who rush to file their tax returns may do so before the relevant salary and TDS details are fully reflected in the system.2. TDS details on non-salary income may also be pendingThe same issue can arise for income sources other than salary. Banks and other entities deducting tax at source are required to file quarterly TDS returns through Form 26Q for the March 2026 quarter by May 31, 2026.Until those statements are filed and processed, information relating to various taxable receipts and the corresponding TDS credits may not be completely visible.As a result, taxpayers who file too early may find that the income reported in their return does not align with the data that later appears in AIS and Form 26AS once deductors submit their TDS returns to the Income Tax Department.

Form 16 and Form 16A are still awaited

Another factor taxpayers should keep in mind is that key tax documents such as Form 16 and Form 16A are issued only after the TDS reporting cycle is completed.As per Rule 31, employers must provide Form 16 to employees by June 15, 2026. Likewise, entities deducting tax on non-salary payments are required to issue Form 16A by mid-June for TDS deducted during the final quarter of FY 2025-26.These certificates continue to play an important role in verifying and reconciling tax information, including:

Submitting a return before these documents are available and reconciled can increase the chances of discrepancies, which may later require corrections or additional compliance, says OP Yadav.

SFT disclosures can significantly change AIS data

TDS information is not the only source that feeds into the AIS. The statement is also updated through filings made under the Statement of Financial Transactions (SFT) framework prescribed under Section 285BA.Specified reporting entities are required to submit these statements by May 31, 2026, covering various high-value financial transactions, including:

Until these filings are submitted and processed, the AIS may not present a complete picture of a taxpayer’s financial activity for the year.This assumes greater significance today because tax administration increasingly relies on data analytics and automated matching systems to identify inconsistencies between taxpayer disclosures and information reported by third parties.

Filing too early can sometimes create avoidable problems

Many taxpayers are keen to submit their returns as soon as the filing utilities become available. While early compliance may seem appealing, rushing the process can sometimes create more complications than benefits.An incorrectly filed return can lead to issues such as:

In practice, taxpayers often end up spending considerably more time correcting errors in a hastily filed return than they would have spent waiting for the underlying tax information to be fully updated.That said, waiting for complete data should not be confused with delaying filing beyond the prescribed deadline. Missing the due date can result in the loss of certain tax benefits, including the flexibility to switch tax regimes where permitted, OP Yadav says.