The most common ITR filing mistakes people make in 2026 — number 6 can delay your refund

Income-tax returns: I asked ChatGPT the most common mistakes people could make when filing their returns in 2026. Here's the top seven important checks it highlighted, including some that can delay your refund process.

The ChatGPT prompt

What are the most common income tax return (ITR) filing mistakes people make? Highlight the important ones for taxpayers to remember in 2026. Can any mistake delay my refund?

Here's what ChatGPT said:

Yes. Several common ITR mistakes can delay processing, trigger notices, or postpone your refund. For Assessment Year (AY) 2026–27 (income earned in FY 2025–26), the Income Tax Department relies heavily on automated matching of your return against AIS, Form 26AS, TDS records, and bank-account information, making accuracy more important than ever.

The most important ITR mistakes to avoid in 2026

1. Choosing the wrong ITR form: This is one of the most common errors. An incorrect form can result in a defective return notice and delay processing. Examples:

• Filing ITR-1 despite having capital gains from shares or mutual funds.
• Filing ITR-1 when you have foreign assets, multiple house properties, or business income.

2. Not reconciling AIS, Form 26AS, Form 16, and your records: Many taxpayers rely only on Form 16 and forget to check interest from savings accounts and FDs, dividend income, capital gains, and other reported transactions appearing in AIS. Mismatches are among the biggest reasons returns get flagged for review.

3. Filing too early before tax data is updated: For salaried taxpayers especially, filing before Form 16 is issued, AIS is fully updated, and TDS data appears in Form 26AS can create avoidable mismatches and may require a revised return later. Tax experts have specifically advised many taxpayers to wait until mid-June when reporting data is more complete.

4. Forgetting income from bank deposits, dividends, or side work: Common omissions include FD interest, savings account interest, dividend income, freelance or consulting income, and rental income. The department often receives this information directly from banks and other institutions.

5. Claiming deductions without proper eligibility: Some examples include excess Section 80C claims, incorrect health insurance deduction under Section 80D, deductions already considered by the employer but claimed again incorrectly. This can lead to tax demand notices later.

6. Claiming incorrect TDS credit: Do not claim TDS unless it appears correctly in Form 26AS or the relevant tax statement. Overstating TDS is a major cause of refund delays and tax department queries.

7. Entering incorrect personal details: Errors in PAN, date of birth, address, email, and mobile number can create processing issues and communication problems.

Mistakes that can directly delay your refund

If your goal is to receive a refund quickly, these are the highest-risk mistakes:

• Incorrect or unvalidated bank account: Refunds are credited electronically. A wrong account number, wrong IFSC, closed account, or failure to pre-validate the account can cause refund failure or delay.
• AIS/Form 26AS mismatch: If your reported income or TDS differs from government records, the return may undergo additional verification.
• Wrong TDS claim: Claiming TDS that is not reflected in tax records often delays processing.
• Not e-verifying the return: Submitting the return is not enough. If you do not complete e-verification within the prescribed period, the return can be treated as not filed.

• Ignoring notices or outstanding tax demands: Pending demands or unresolved notices can hold up refunds until the issue is resolved.
• PAN-Aadhaar issues: If a PAN becomes inoperative due to Aadhaar-linking problems, refunds can be withheld or delayed.

A practical 2026 filing checklist

Before you click submit, remember to follow these steps to eliminate a majority of refund delays and tax notices faced by individual taxpayers.

– Check AIS and Form 26AS

– Match all TDS with Form 16/Form 16A

– Report all bank interest and dividends

– Confirm you selected the correct ITR form

– Verify capital gains reporting, if any

– Ensure your refund bank account is pre-validated

– Complete e-verification immediately after filing

– Keep supporting documents for deductions claimed

Disclaimer: This article contains AI-generated analysis and is intended only for informational and educational purposes. It should not be treated as financial, investment, tax, insurance, legal or retirement advice. Consult a financial advisor before making investments.