ITR Filing FY 2025-26: Why Taxpayers Should Wait Before Filing Returns

ITR Filing FY 2025-26: Why Taxpayers Should Wait Before Filing Returns

The income tax return (ITR) filing season for the financial year 2025-26 has begun and many salaried taxpayers are eager to file their returns early. Filing early can help taxpayers avoid a last-minute rush and may also lead to faster refunds. However, tax experts advise the taxpayers not to hurry in filing their returns immediately although the ITR filing utility is available.

The last date to file ITR for Financial Year (FY) 2025-26, or Assessment Year (AY) 2026-27, is July 31, 2026. According to OP Yadav, former Principal Commissioner of Income Tax, taxpayers should ideally wait until at least June 15 before filing their returns.

The reason is simple: tax filing today depends heavily on data matching. The Income Tax Department cross-checks information reported by taxpayers with details submitted by employers, banks, mutual funds, stock brokers, financial institutions and other reporting entities. If all data has not been updated yet, filing too early may result in errors or mismatches.