The income tax return (ITR) filing season for the financial year 2025-26 is underway, and taxpayers must carefully choose the appropriate ITR form to reflect their income accurately. Filing the wrong form can lead to defective returns and tax notices. Key changes for assessment year 2026-27 include the expanded eligibility for ITR-1, which now allows taxpayers to report up to two house properties. Taxpayers should also ensure their income details align with Form 26AS and the Annual Information Statement (AIS) to avoid discrepancies that could trigger notices from the tax department.

Taxpayers need to evaluate whether to opt for the old or new tax regime based on their actual tax calculations, as the old regime may still be beneficial for those claiming significant deductions. The simplified forms ITR-1 and ITR-4 are available, but taxpayers must transition to ITR-2 or ITR-3 if they have more complex income profiles. Common mistakes include continuing to use outdated forms or misreporting income types, which can lead to complications during the filing process. Correcting any errors promptly is essential to maintain the validity of the return.