ITR filing FY 2025–26 is not just a compliance ritual. It is a financial audit you voluntarily submit to the government every year. And most Indian taxpayers still treat it like a formality instead of a legal declaration that quietly determines whether they get a refund smoothly or get dragged into notices, delays, and future scrutiny.
The harsh truth is this: the Income Tax Department does not care how honest you “feel.” It only cares whether your numbers match its databases. And in 2026, those databases are far more aggressive than they were even a few years ago.
This ITR filing FY 2025–26 guide explains how to choose the correct ITR form, how AIS and TIS mismatches silently trigger notices, how to fix those mismatches properly, what refund timelines actually look like, and which common mistakes push your return into the scrutiny bucket. No CA jargon. No false reassurance. Just the mechanics that decide whether your ITR goes through quietly or explodes later.
Why ITR Filing FY 2025–26 Is More Dangerous Than It Looks
Most taxpayers think filing ITR is about paying tax.
It is not.
It is about data reconciliation.
The department already has:
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Your salary data from Form 16
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Your bank interest data from Form 26AS
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Your mutual fund transactions
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Your stock trades
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Your crypto trades
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Your property transactions
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Your large expenses
Your ITR is not a declaration of income.
It is a reconciliation exercise between your story and their story.
If the stories don’t match, you get flagged.
How to Choose the Correct ITR Form for FY 2025–26
This is where mistakes begin.
Using the wrong form is not a minor error.
It can invalidate your return.
Basic logic:
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ITR-1: Salary + one house property + other income below threshold
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ITR-2: Capital gains, more than one house property, foreign assets
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ITR-3: Business or professional income
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ITR-4: Presumptive business income
If you trade stocks, mutual funds, or crypto, ITR-1 is already wrong for you.
Thousands of salaried investors still use ITR-1 and silently invite notices.
What AIS and TIS Actually Are (And Why They Terrify the Department)
AIS is your Annual Information Statement.
TIS is your Taxpayer Information Summary.
They are not suggestions.
They are the department’s master datasets.
They contain:
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Salary entries
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Bank interest
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Dividend income
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Share trades
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Mutual fund redemptions
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Property purchases
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Foreign remittances
Your ITR is cross-checked line by line against these two files.
If something appears in AIS and not in your ITR, the system assumes concealment.
Why AIS/TIS Mismatches Trigger Notices Automatically
This is not human-driven anymore.
It is algorithmic.
Common mismatch triggers:
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Forgot to declare bank interest
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Missed dividend income
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Ignored stock capital gains
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Declared lower income than AIS
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Declared wrong head of income
You may think it’s a small amount.
The system does not.
It flags mismatches regardless of amount.
How to Fix AIS/TIS Mismatches Properly
This is where most taxpayers screw up again.
You have two options:
Option 1: Accept the AIS entry and declare income in ITR.
Option 2: Dispute the AIS entry inside the AIS portal with proof.
What you must never do:
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Ignore AIS
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Hope the department won’t notice
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File ITR first and fix later
Fix AIS first.
Then file ITR.
Refund Timeline Reality for ITR Filing FY 2025–26
Refunds are not instant gratification.
They depend on:
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E-verification speed
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Bank account validation
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No mismatches
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No scrutiny selection
Best-case scenario:
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Refund in 7–20 days.
Worst-case scenario:
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Refund delayed by months due to verification or scrutiny.
Most refund delays are self-inflicted.
Why Refunds Get Stuck or Fail
This is where anger is misdirected.
Common failure reasons:
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Bank account not pre-validated
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Wrong IFSC code
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Name mismatch between PAN and bank
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Outstanding tax demand from previous year
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AIS mismatch flag
The department doesn’t “hold” your refund emotionally.
It blocks it logically.
Mistakes That Trigger Income Tax Notices in 2026
These mistakes are financial suicide:
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Using wrong ITR form
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Hiding small incomes
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Ignoring AIS entries
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Declaring fake deductions
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Claiming HRA without rent proof
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Not reporting capital gains
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Not reporting crypto income
Notices are not random.
They are invited.
Why Small Tax Evasion Is the Dumbest Strategy Now
People still think:
“It’s only 5,000 rupees. They won’t notice.”
They will.
Because automation has eliminated mercy.
The system does not evaluate morality.
It evaluates mismatches.
What To Do If You Get a Notice After Filing ITR
Do not panic.
Do not ignore.
Correct response:
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Log in to the e-filing portal
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Open the notice
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Read the mismatch reason
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Respond with documents
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File revised return if required
Ignoring notices escalates penalties.
Should You File ITR Yourself or Use a CA?
This depends on complexity.
Self-filing works if:
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Only salary income
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No capital gains
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No foreign assets
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Clean AIS
Use a CA if:
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You trade or invest
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You have multiple incomes
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You have capital gains
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You received a notice
Ego-based self-filing is expensive.
Why ITR Filing FY 2025–26 Is a Data Discipline Game
This is not taxation.
This is database alignment.
If your data matches:
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You get refunds
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You get no notices
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You sleep peacefully
If your data doesn’t match:
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You get notices
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You get delays
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You get scrutiny
That’s the whole game.
Conclusion: Your ITR Is Not a Form. It Is a Confession Document
ITR filing FY 2025–26 is not paperwork.
It is a legal confession of your financial life.
If you lie, the system remembers.
If you mismatch, the system punishes.
If you reconcile properly, the system leaves you alone.
That is the deal.
FAQs
Which ITR form should I use for FY 2025–26?
It depends on your income type. ITR-1 for simple salary income, ITR-2 for capital gains or multiple properties, ITR-3 for business income.
What is AIS in income tax?
AIS is the Annual Information Statement that shows income and transaction data reported to the Income Tax Department.
What is TIS in income tax?
TIS is the Taxpayer Information Summary that condenses AIS data into income categories.
How do I fix AIS mismatches?
Log in to the AIS portal, dispute incorrect entries with proof, and then file your ITR.
Why is my income tax refund delayed?
Refunds are delayed due to bank validation issues, AIS mismatches, or scrutiny selection.
Click here to know more.