It is July 2026, and income tax return season is in full swing. Every year, lakhs of taxpayers across India rush to file their returns at the last minute — and every year, many of them end up paying penalties, receiving income tax notices, or losing out on refunds simply because of avoidable mistakes.
At K.K & Company, we have been working in the field of tax, audit, and GST for over two decades. In that time, we have seen people make the same errors repeatedly — not because they are careless, but because the rules keep changing and nobody explains them in plain language.
This blog is our attempt to fix that. Here is what you actually need to know for FY 2025-26, laid out simply
Filing after the deadline means:
What Is the Last Date to File ITR for FY 2025-26?
Before anything else — the deadline:| Type of Taxpayer | ITR Last Date (AY 2026-27) |
|---|---|
| Salaried / Individual (ITR-1 & ITR-2) | 31st July 2026 |
| Business / Professional – Non-Audit (ITR-3 & ITR-4) | 31st August 2026 |
| Businesses Requiring Tax Audit | 31st October 2026 |
| Transfer Pricing Cases | 30th November 2026 |
| Belated / Revised Return | 31st December 2026 |
-
- Late fee of ₹1,000 if your income is below ₹5 lakh
- Late fee of ₹5,000 for all other cases
- Interest under Section 234A at 1% per month on unpaid tax
- Loss of ability to carry forward certain losses (business losses, capital losses)
- Possible delay in your income tax refund
The 6 ITR Filing Mistakes People Make Every Year (And How to Avoid Them)
After filing returns for hundreds of clients, these are the errors I see most often:1. Picking the Wrong ITR Form
This is the most common mistake and it results in a defective return notice under Section 139(9). The Income Tax Department sends your return back, and you have to refile — causing delays and stress. Quick guide:-
-
- ITR-1 (Sahaj): Salary income up to ₹50 lakh, one house property, interest income. From this year, you can also use ITR-1 if you have LTCG on listed equity/mutual funds up to a certain limit.
- ITR-2: Multiple house properties, capital gains, foreign income, or salary above ₹50 lakh.
- ITR-3: Business income, F&O trading, freelancers, partners in a firm.
- ITR-4 (Sugam): Presumptive income under Section 44AD/44ADA — but NOT if you are a director in a company or hold unlisted shares.
-
2. Not Checking Your AIS and Form 26AS First
The Annual Information Statement (AIS) is the Income Tax Department’s complete record of what they know about your finances — salary, FD interest, dividends, mutual fund redemptions, property purchases, and more. If what you file does not match AIS, you will get a notice under Section 143(1)(a). Before filing, download your AIS and Form 26AS from the e-filing portal and match them against:-
-
- Your salary slips and Form 16
- Bank interest certificates from all your banks (not just the salary account)
- Dividend income from stocks or mutual funds
- Capital gain/loss statements
-
3. Forgetting to Add Income from ALL Sources
Many taxpayers report only their salary and stop there. But the following income is also taxable and must be declared:-
-
- Savings account interest (yes, even ₹3,000 from your salary account counts)
- FD interest — this is fully taxable regardless of TDS deducted
- Rental income — even informal rent from family members staying in your property
- Freelance income or part-time consulting fees
- Capital gains from selling mutual funds, stocks, or property
-
4. Claiming Deductions Without Understanding the Tax Regime
From AY 2024-25 onwards, the New Tax Regime is the default unless you actively choose the Old Regime. This matters because:-
-
- Under the New Regime, deductions like 80C (PPF, LIC, ELSS), 80D (health insurance), and HRA are not available
- Only Standard Deduction of ₹75,000 and employer NPS contribution under 80CCD(2) are allowed in the new regime
-
5. Choosing the Wrong Assessment Year
For income earned from April 2025 to March 2026 (Financial Year 2025-26), the Assessment Year is 2026-27. Every year, some taxpayers accidentally select the previous AY while filing. The return goes through and looks fine — but it is applied to the wrong year. This creates a mess that takes months to sort out. Double-check: FY 2025-26 → AY 2026-27. Always.6. Not E-Verifying After Filing
Filing the return and e-verifying the return are two different things. Until you e-verify, the return is not legally valid — it is treated as if it was never filed. E-verify using:- Aadhaar OTP (the fastest option)
- Net banking
- Demat account
- DSC (for businesses)
What’s Changed in GST for FY 2025-26? Key Updates Every Business Must Know
If you run a business or are registered under GST, there have been several important changes over the past year. Here are the ones that matter most:GSTR-3B: Stricter Portal Validations from 2026
Starting from early 2026, the GST portal has moved from warnings to hard validations for ITC claims. What this means practically:- If the ITC you are claiming in Table 4 of GSTR-3B exceeds the balance in your ITC reclaim ledger or ECRS ledger, the portal will not allow you to file the return at all — it will not just warn you.
- Make sure your ITC reconciliation with GSTR-2B is clean before you attempt to file GSTR-3B. Do not leave this for the last minute.
3-Year Time Limit for Pending GST Returns — Strictly Enforced
This is critical for businesses with any backlogs: the GST portal now strictly enforces a three-year time limit on filing old returns. Returns for periods beyond three years cannot be filed anymore — they are permanently blocked. If you have any unfiled GSTR-1, GSTR-3B, or GSTR-9 for earlier years, do not wait. Once blocked, the ITC for those periods is also lost permanently.ISD Registration Is Now Mandatory
From 1st April 2025, businesses with multiple GST registrations under the same PAN (like businesses with branches in different states) must obtain Input Service Distributor (ISD) registration. The old practice of using cross-charge to distribute input credits is no longer permitted. If your firm provides common services like rent, audit fees, or software licenses across different branches — this change directly affects how you allocate ITC. Non-compliance will result in ITC mismatches during audit.New E-Way Bill Rules (From January 2025)
E-way bills can only be generated for documents dated within the last 180 days. Extensions are capped at a maximum of 360 days from the original generation date. This has caught several businesses off guard — particularly those with long-distance or slow-moving consignments.Why Filing On Time Actually Saves You Money
People often ask us: “CA sahab, kya extend ho jaayega deadline?” After 20 years of doing this, our honest advice is — plan as if it will not. Filing before 31st July gives you:- A clean credit record (important for loan applications and visa processing)
- Faster income tax refunds
- Option to carry forward losses to set off against future gains
- Peace of mind through the monsoon months instead of scrambling in September
A Simple ITR Filing Checklist for FY 2025-26
Before you sit down to file, keep these documents ready:- Form 16 from your employer (Part A + Part B)
- AIS and Form 26AS downloaded from income tax portal
- Bank statements for all accounts (April 2025 – March 2026)
- Interest certificates from all FDs and savings accounts
- Capital gains statements from broker / mutual fund house
- Investment proofs (if claiming under Old Regime: 80C, 80D, HRA)
- Home loan interest certificate (if applicable)
- Rental income details (if applicable)
- PAN card, Aadhaar (linked with mobile for e-verification)
Need Help Filing Your ITR or GST Returns?
At K.K & Company, we handle income tax filing, GST compliance, audit, and company registration for individuals, salaried professionals, MSMEs, and startups in Indore and across Madhya Pradesh.
We are a CA + CS firm — which means for most compliance needs your business has, you get both under one roof.
If you want to file your ITR correctly this season, without the stress of notices later — send us a message on WhatsApp or drop a DM on Instagram. We will tell you exactly what you need and how we can help. 0731-4065159, +9198270-2654
📍 K.K & Company | Chartered Accountants & Company Secretaries | Indore, Madhya Pradesh
Disclaimer: This blog is for informational purposes only and is based on tax laws and GST regulations current as of July 2026. Please consult a qualified CA for advice specific to your situation. Tax laws are subject to change.