Don’t Rush Your ITR: Why Filing for FY 2026-27 Before 15 June Is a Bad Idea  

CA Prahlad Sahai Kumhar

The Income Tax Department has opened the filing window for Assessment Year 2026-27. The forms are live, and many taxpayers are tempted to file early to get faster refunds. As a practicing CA, my firm advice is simple: hold your ITR till 15 June 2026.

The Core Problem: Incomplete Data

Your tax return is not just about what you declare. The department cross-verifies it with data reported by third parties in your Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS). This data is not ready yet.

Here’s the timeline: Banks, employers, mutual fund houses, and other deductors have until 31 May 2026 to file their TDS and TCS statements for Q4 of FY 2025-26. Once filed, this information takes another 5-7 days to reflect in your 26AS and AIS. In practice, your tax passbook is fully updated only by the first week of June.

If you file your ITR in April or May, you’re essentially filing with incomplete department data. The system will later detect mismatches between what you reported and what third parties reported.

What Happens If You File Early?

1. Automated Mismatch Notices: The CPC will send you a notice under section 143(1) for mismatch in income or TDS credit.

2. Refund Delays: Instead of a quick refund, your return will go into processing queues for mismatch resolution. This often takes months.

Who Should Definitely Wait?

You must defer filing if you fall into any of these categories:

– Salaried individuals: Your Form 16 is typically issued only by 15 June. Filing without it is risky.

– Capital market investors: Data on stock and mutual fund transactions from brokers and AMCs updates late in AIS.

– Freelancers and professionals: Multiple TDS entries under section 194J, 194C etc. take time to reflect.

– People with multiple bank accounts or high-value transactions: SFT reporting by banks often gets updated in the first week of June.

Can Anyone File Early?

Yes, but the list is short. If you have only salary from one employer with no TDS, or only interest income with no tax deduction, and you have manually reconciled every rupee of income, you may proceed. But for 95% of taxpayers, waiting is safer.

The Smart Approach for AY 2026-27

1. Wait till 15 June 2026. Let the data ecosystem stabilize.

2. Download and verify: Get your Form 16, Form 26AS, AIS, and TIS. Match every entry with your own records.

3. Reconcile first, file later: Ensure your declared income, deductions, and TDS credit match the department’s data.

4. File accurately: A correct return filed on 20 June is better than a defective one filed on 20 April.

A 45-day delay can save you months of notices and anxiety. File smart, not fast.

For case-specific queries, consult your tax professional.

Frequently Asked Questions (FAQs)

Q.1 Why is it advisable not to file the ITR for AY 2026-27 before 15 June 2026?

Ans. Filing before 15 June 2026 may result in your return being based on incomplete data, as Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS) may not yet reflect all TDS, TCS, and other information reported by banks, employers, and other deductors.

Q.2 What problems can arise if I file my income tax return too early?

Ans. If you file your ITR before the department’s records are fully updated, you may face mismatches between your return and the information reported by third parties. This can lead to notices under Section 143(1), delays in processing, and postponement of any tax refund.

Q.3 Who should definitely wait before filing their ITR?

Ans. Salaried individuals awaiting Form 16, investors with stock or mutual fund transactions, freelancers and professionals with multiple TDS deductions, and taxpayers having multiple bank accounts or high-value transactions should ideally wait until the reporting data is fully reflected before filing their return.

Q.4 Can anyone safely file an ITR before 15 June 2026?

Ans. Early filing may be suitable only for taxpayers with very simple tax profiles, such as those having salary from a single employer without TDS or only interest income without tax deduction, provided they have independently verified and reconciled all their income.

Q.5 What is the recommended approach for filing an accurate ITR for AY 2026-27?

Ans. The recommended approach is to wait until at least 15 June 2026, obtain and reconcile Form 16, Form 26AS, AIS, and TIS with your own records, verify income, deductions, and TDS credits, and then file a complete and accurate return to minimize the risk of notices and refund delays.