Last 3 days to file ITR:Up to ₹5,000 fine after July 31; know the late fee rule and 10 important tips

For the financial year 2025-26, only 3 days are left for Income Tax Return (ITR) filing. The last date for filing returns for common taxpayers is July 31, 2026. Meanwhile, for some individuals in the business class (ITR-3 and 4), it is August 31. If you miss the July 31 deadline, you can file a ‘belated return’ by paying a penalty until December 31. However, for this, you will have to pay a late fee. ITR is the official record of your total income, investments, and financial transactions. Income Tax Department keeps an eye on the information you provide The Income Tax Department collects information through AI, data analytics, and various portals, including bank accounts, TDS, shares-mutual funds, property, and foreign travel, and matches it with the information provided in the ITR. In such a situation, even a small error can lead to tax demand, interest, and penalty. Here, Tax Expert and CA Anand Jain, Indore, tells you the 10 important things to keep in mind while filing ITR. 1. Don’t rely solely on Form 16 Many salaried individuals believe that whatever is in Form 16 is sufficient. However, Form 16 only provides information about salary and TDS deducted on it. If you have earned interest from FD, RD, savings accounts, dividends, rent, freelance income, gains from shares/mutual funds, or foreign income, it is also necessary to include it in your ITR. Concealing these may lead to paying additional tax and interest later. 2. Choosing the correct ITR form is very important Choosing the wrong form may result in your return being considered defective, meaning it will be assumed that you have not filed your return at all. 3. Definitely check AIS, TIS and Form 26AS Before filing the return, definitely match Form 16, Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). If the income shown in these differs from your return, the department may ask for clarification. If incorrect information is visible, file a complaint for correction on the portal. 4. If you change jobs, add the salaries from both companies If you have changed jobs in the financial year, file the return by adding the salaries received from both the old and new employers. Failure to do so may result in having to pay tax later due to less TDS deduction. 5. Fill in bank account details correctly Provide details of all bank accounts. Enter the IFSC code and account number of the refund-receiving account correctly. Mistakes can delay the refund. 6. Don’t forget to declare interest income Many people think that if TDS is not deducted, the income is not taxable. This is incorrect. Interest from FD, RD, savings accounts, and bonds is known to the department through AIS and bank data. Omitting these can be costly. 7. Provide full details of sale of shares, mutual funds, and property Since demat accounts are linked to PAN, all transactions are available to the department. Declare both profits and losses from selling shares, redeeming MFs, or selling property. Showing losses can save tax in the future. 8. Claim deductions with documents Deductions like 80C, NPS, 80D (Health Insurance), and interest on home loans should only be claimed on genuine investments. Keep documents safe, as the department may ask for proof at any time. 9. Full disclosure of foreign investments and income Those investing in foreign shares, ETFs, bank accounts, or platforms must provide details. Especially for Resident and Ordinary Resident taxpayers, providing information about foreign assets may be necessary. 10. E-verify after filing your return Submitting the return is not enough. E-verification using Aadhaar OTP, net banking, Demat account, or digital signature is mandatory. Failure to do so on time may invalidate the return. A late fee of up to ₹5,000 will be charged after July 31 Taxpayers filing ITR after July 31 will have to pay a late fee. If an individual taxpayer’s annual income is more than 5 lakh rupees, then they will have to pay a late fee of 5000 rupees. If the taxpayer’s annual income is less than 5 lakh rupees, then they will have to pay 1,000 rupees as a late fee.