The filing for the income tax return (ITR) for the Assessment Year (2026-27) has been live for over two weeks, as the Excel utilities have been launched by the Income Tax Department. However, according to experts, salaried individuals, persons having extra income in the form of capital gain from fixed deposits, mutual funds, stocks, or other investment instruments, should file their ITR post June 15. 

The ITR utilities are available, but banks and other financial institutions usually file their annual specified financial statement by May 31, and SIF data are used by the Income Tax Department to auto-populate information in taxpayers' Annual Information Statement (AIS). Moreover, companies usually release Form 16 to their employees around June 15.

Mrinal Mehta, Joint Secretary at Bombay Chartered Accountants’ Society, says that each year, as the income tax portal opens for filing, a familiar rush begins. But portal readiness is not the same as data readiness.

"The modern income tax return is built almost entirely on third-party reported information — and most of that information crystallises only by the middle of June. Filing before then is not merely premature; for several categories of taxpayers, it is an invitation to mismatches, notices and avoidable rework," Mehta noted.

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Reporting Calendar That Governs Taxpayers' ITR Data

  • Banks, mutual funds, registrars, companies and other reporting entities file their Statement of Financial Transactions (SFT) by 31st May, under Section 285BA read with Rule 114E of the Income Tax Rules.
  • Deductors file their fourth-quarter TDS returns by the same date.
  • Employers are required to issue Form 16 by 15th June under Rule 31.
  • Consequently, Form 26AS and the Annual Information Statement (AIS) are updated and stabilised only by mid-June.

"This is why June 15 is the practical dividing line. Anyone whose return depends on data flowing from the above sources should wait," Mehta emphasised. 

Which Taxpayers Should Hold Off Filing ITR And Why 

According to the expert, salaried employees should hold filing ITR by June 15, as Form 16 may not be issued by June 15. Filing on an estimated figure may risk a salary or TDS mismatch. 

Capital gains data from brokers, depositories and registrars populates the AIS through early to mid-June, so investors in Mutual Fund an stocks should also avoid premature filing, as it often understates or misstates gains.

Additionally, Interest income and TDS on deposits are reported by banks via SFT and TDS returns. These frequently appear in 26AS/AIS only after the May 31 deadline is processed, so according to Mrinal, Bank depositors and senior citizens should also not be in a hurry. 

Dividend recipients and taxpayers with high-value transactions are advised to follow the same process as dividend payouts and TDS settlements by mid-June, and property purchases, large cash deposits, credit card spends, and similar transactions are SFT-reportable. 

The Cost of Filing Too Early

According to Mehta, a mismatch between your return and the department's records is not just a harmless clerical issue. Income reflected in 26AS or the AIS but omitted from the return can be added at the processing stage under Section 143(1)(a) of the Income Tax Act, 1961.

Worse, it can attract a penalty for under-reporting under Section 270A — 50% of the tax on under-reported income, rising to 200% where misreporting is established — quite apart from interest and the inconvenience of filing a revised return under Section 139(5).

"Use the second half of June to reconcile your Form 16, 26AS and AIS thoroughly. For most taxpayers, the prudent window to begin filing is the first week of July, once the data has settled," Mehta advised. 


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