File Your Income Tax Return Accurately: A Step-by-Step Guide

THE MAG POST
4 hours ago
7 min read

The income tax return filing for the assessment year 2025-26 is well underway, with the September 15 deadline rapidly approaching, leaving taxpayers with less than two weeks to finalize their submissions. Thus far, an impressive over 4.66 crore Income Tax Returns (ITRs) have been filed, and a substantial 3.23 crore of these have already been processed by the authorities. However, tax experts consistently advise against waiting until the eleventh hour, as the income tax portal frequently experiences glitches and slowdowns during these critical final days, potentially jeopardizing timely and accurate filings. For individuals managing their tax submissions independently, it's crucial to understand the key steps to ensure your return is filed correctly and efficiently, thereby avoiding any potential complications or delays.

Navigating the Final Stretch: Ensuring Accurate Income Tax Return Filing

As the September 15 deadline for the assessment year 2025-26 looms, a significant number of taxpayers are rushing to submit their income tax returns (ITRs). With over 4.66 crore ITRs already filed and 3.23 crore processed, the pressure to complete this annual financial obligation is palpable. However, tax professionals are sounding a note of caution against procrastination. The final hours leading up to any tax deadline are notoriously prone to technical glitches on the income tax portal, which can lead to stressful last-minute scrambles and potential errors. To mitigate these risks, especially for those opting for self-filing, a thorough understanding of the verification process is paramount. This guide aims to illuminate the critical steps and checks necessary to guarantee your income tax return is filed accurately and efficiently, safeguarding against future complications and ensuring timely refunds.

Confirming Your Filing: The ITR Acknowledgement and Verification Process

The initial step after submitting your income tax return is to secure and review the ITR Acknowledgement, commonly known as ITR-V. This document serves as definitive proof that the Income Tax Department has received your submitted return. It's crucial to obtain this immediately after filing.

The Significance of ITR-V

The ITR-V is more than just a receipt; it's your primary evidence of compliance. Without this, your filing is incomplete, regardless of whether you believe you've successfully uploaded all necessary documents. Ensure you download and save this form in a secure location, as it may be required for future reference or in case of any discrepancies.

Verifying Submission Status

Following submission, checking the status of your return is non-negotiable. Navigate to the relevant section on the income tax portal to confirm if your status reads ‘Successfully e-Verified’ or ‘ITR Filed and Pending Verification’. This latter status requires immediate attention.

If your return is marked as pending verification, prompt action is essential. You have a window of 30 days from the date of filing to complete the e-verification process. This can be conveniently done through several methods, including Aadhaar OTP, net banking, or by using your Demat account details. Alternatively, you can print the ITR-V, sign it, and dispatch it via post to the Centralized Processing Center (CPC) in Bengaluru. Failure to complete this verification step renders your ITR invalid, nullifying all your filing efforts and potentially incurring penalties or missed refund opportunities.

Ensuring Accurate Bank Details for Refunds

For those anticipating a refund, the accuracy of your bank account details is critically important. Refunds are processed via direct credit, making precise information vital. Ensure that the bank account number, IFSC code, and account type you have provided are not only correct but also active and accessible. A minor error here can lead to significant delays or the return of your refund, requiring you to follow up with the tax authorities.

Cross-Referencing for Precision: Form 26AS and AIS

To achieve a truly accurate income tax return, meticulous cross-referencing with official tax documents is indispensable. The Income Tax Department provides two key statements that offer a consolidated view of your tax-related financial activities: Form 26AS and the Annual Information Statement (AIS).

Understanding Form 26AS

Form 26AS acts as a consolidated tax statement. It meticulously details all the tax that has been deducted at source (TDS) from your income by deductors (like employers or banks), any advance tax payments you’ve made, and any tax collected at source (TCS). It also reflects details of any refunds you may have received. Comparing the figures in your filed ITR with those presented in Form 26AS is a critical step in identifying any discrepancies.

Leveraging the Annual Information Statement (AIS)

The Annual Information Statement (AIS) is a more comprehensive document than Form 26AS. It includes not only the information present in Form 26AS but also additional details such as specified financial transactions, information related to mutual funds, securities, interest payments, dividend income, and other such financial activities that are reported to the tax authorities. A thorough review of the AIS alongside your ITR ensures that all reported income and tax liabilities are accounted for accurately.

Any mismatch identified between your ITR and these statements, such as a higher TDS credit claimed in your return than what appears in Form 26AS or AIS, can trigger scrutiny from the tax department. This could lead to a demand notice for the difference, or significant delays in processing your refund as the department seeks clarification. Proactive reconciliation is therefore key to a smooth tax filing experience.

Maximizing Benefits: Reviewing Deductions and Exemptions

A significant aspect of filing an income tax return involves leveraging available tax benefits through deductions and exemptions. It’s essential to ensure that these are claimed correctly and that all supporting documentation is in order. This not only helps in reducing your taxable income but also ensures compliance with tax regulations.

Strategic Claiming of Deductions

Sections like 80C, which allows deductions for investments in specified instruments like PPF, ELSS, life insurance premiums, and home loan principal repayment, are commonly utilized. Similarly, Section 80D covers health insurance premiums, while others offer benefits for donations, education loans, and more. Carefully review the eligibility criteria and the maximum limits for each deduction you claim. Ensure that all investments and expenses you are claiming have actually been made and are eligible for deduction under the relevant sections.

Verifying Exemption Claims

Exemptions, such as the House Rent Allowance (HRA) exemption for salaried individuals, also require specific conditions to be met and proper documentation. Ensure that you have collected rent receipts and, if applicable, the landlord’s PAN details. Misrepresenting information or claiming deductions/exemptions for which you do not have adequate proof can lead to disallowance during assessment.

Double-checking your calculations for these benefits is vital. A simple arithmetic error could lead to an incorrect tax calculation. It is advisable to maintain a clear record of all investment proofs and expense receipts throughout the financial year to facilitate easy verification during tax filing and in case of any future inquiries from the tax department.

The Final Seal of Approval: Understanding Section 143(1) Intimation

Once your income tax return has been processed by the Income Tax Department, a formal intimation is sent to you. This communication, issued under Section 143(1) of the Income Tax Act, serves as the final confirmation of your tax assessment for the period.

What is Section 143(1) Intimation?

This intimation is typically sent to your registered email address and sometimes via post. Its primary purpose is to compare the income and tax details you have declared in your ITR with the information available in the department's records, including data from Form 26AS and AIS. It’s a preliminary check to identify any prima facie errors or discrepancies in your filing.

Interpreting the Intimation Notice

The intimation notice will clearly state the outcome of this comparison. If the department finds that your declared income and tax liability match their records, and no adjustments are required, the notice will confirm that your return has been processed as filed. However, if any discrepancies are found—such as under-reported income, excess claims of deductions or losses, or incorrect tax credits—the notice will detail these adjustments. It will specify any additional tax demand raised against you or any refund due after making the necessary corrections.

It is imperative to review this intimation carefully. If you agree with the adjustments, you are generally required to pay the demand within a specified period. If you disagree with the adjustments made by the department, you have the right to respond and provide further clarification or evidence. Understanding the contents of the Section 143(1) intimation is the concluding step in ensuring your tax filing is complete and accurate, offering peace of mind until the next assessment cycle.

Conclusion: Proactive Filing for a Stress-Free Tax Season

Filing your income tax return accurately and on time is not merely a legal obligation but a cornerstone of sound personal financial management. By moving beyond the last-minute rush and adopting a proactive approach, taxpayers can significantly reduce the stress associated with tax season. Diligently verifying your ITR acknowledgement, completing the e-verification process promptly, and ensuring the accuracy of your bank details lay a solid foundation. Furthermore, meticulous cross-referencing with Form 26AS and the Annual Information Statement, coupled with a careful review of all claimed deductions and exemptions, prevents potential discrepancies and ensures you avail all eligible benefits. Finally, understanding and responding to the Section 143(1) intimation provides closure and confirms the successful processing of your return. Embracing these practices transforms tax filing from a daunting task into a manageable, routine financial activity, paving the way for timely refunds and avoiding unnecessary notices or penalties.

Key Step	Description	Importance
ITR Acknowledgement (ITR-V)	Official receipt confirming successful submission of your return.	Proof of filing; essential for future reference.
Verify Return Submission Status	Check portal for 'Successfully e-Verified' or 'Pending Verification'.	Mandatory for validation; failure invalidates the return.
Confirm Bank Details	Ensure accuracy of account number, IFSC, and type for refunds.	Crucial for timely and correct refund credit.
Cross-check with Form 26AS and AIS	Compare ITR data with TDS, advance tax, and other income details.	Ensures accuracy, prevents mismatches, avoids demand notices/delays.
Review Deductions and Exemptions	Verify claims under sections like 80C, 80D, and exemptions like HRA.	Maximizes eligible tax benefits and ensures compliance.
Look for Section 143(1) Intimation	Review the department's comparison of your filing with their records.	Confirms processing, highlights adjustments, or confirms accuracy.