Filing your return correctly is half the battle of tax planning. The wrong form, an unreconciled AIS, or a missed schedule can trigger a notice that costs more in time and worry than the original tax saved.

Which ITR form do you use?

ITR-1 (Sahaj) — Salaried with income up to ₹50 lakh, one house property, interest income, and agricultural income up to ₹5,000. The simplest form. Not usable if you have any capital gains.

ITR-2 — Salaried + capital gains, multiple house properties, foreign assets, NRI status, director in a company, or holdings in unlisted shares. The most common form for retail equity investors.

ITR-3 — Income from business or profession, including F&O trading, intraday trading, and freelance / consulting income.

ITR-4 (Sugam) — Presumptive taxation for small business / professionals (sections 44AD / 44ADA / 44AE). Income up to ₹50 lakh / ₹2 crore depending on category.

Where most retail investors land

If you have an SIP portfolio and any redemption during the year — even if no tax is due thanks to the ₹1.25 lakh exemption — you must file ITR-2. Filing ITR-1 with capital gains is one of the most common reasons for defective return notices.

F&O / intraday is "business income"

Income from intraday equity (speculative) and F&O (non-speculative business) must be reported under business income, requiring ITR-3. Audit may be required if turnover exceeds prescribed limits or if you declare lower than 6%/8% presumptive income.

Reconciling AIS and 26AS

The Annual Information Statement (AIS) and Form 26AS now pre-populate most of your data from banks, brokers, AMCs, employers, and registrars. Common mismatch sources:

• Capital gains reported by the broker vs your own calculation (different cost-basis treatment)
• Dividend income reported twice (once by company, once by broker)
• Interest income on FDs you forgot existed
• Mutual fund redemptions not flowing into AIS in real time

If AIS shows something incorrect, file feedback in the AIS portal before filing your ITR. Filing ITR with numbers different from AIS without explanation almost always invites scrutiny.

Deadlines (AY 2026-27)

• 15 September 2026: ITR filing deadline for individuals (non-audit)
• 31 October 2026: For audit cases
• 31 December 2026: Belated return deadline (with late fee)
• 31 March 2027: Updated return (ITR-U) deadline for the second year

Late filing penalty

• ₹1,000 if total income ≤ ₹5 lakh
• ₹5,000 if total income > ₹5 lakh
• Plus interest u/s 234A, 234B, 234C on any unpaid tax
• Carry-forward of losses lost if return is late

The 10 most common mistakes

1. Filing ITR-1 with capital gains
2. Not reporting small interest income (savings account, FD, EPF interest above ₹2.5 lakh employee contribution)
3. Missing dividend income (auto-populated in AIS — easy to overlook)
4. Wrong bank account for refund (must be pre-validated)
5. Not reporting foreign assets if held even briefly during the year (ESOPs from US parent, US stocks via LRS, NRO bank balances)
6. Claiming HRA without rent receipts and landlord PAN (if rent > ₹1 lakh)
7. Missing the e-verification step (return not filed without it)
8. Claiming 80C deductions and forgetting to add up EPF contribution
9. Treating intraday or F&O as capital gains instead of business income
10. Filing without reconciling AIS, then panicking when notice arrives

If you get a notice

Most notices are routine and resolve in minutes with the right response. Common ones:

• Sec 139(9) defective return: Usually a form mismatch. Re-file with the correct form within 15 days.
• Sec 143(1) intimation: Automated processing — could be a refund or a demand. Match line by line; if you disagree, file a rectification.
• Sec 245 adjustment: Refund being adjusted against an earlier-year demand. Verify the earlier demand is actually correct.
• Sec 142(1) inquiry: Genuine information request. Respond with documents within deadline.

Should you use a CA?

For pure salaried + simple SIP + 80C, you can self-file confidently using the ITR portal or a paid app. For F&O, multiple house properties, foreign assets, NRI return, business income, or any inheritance / large gift event — a one-time CA review is worth its weight.

Course wrap

You now know the Indian tax code well enough to plan, file, and respond. Next steps:

• Investing 101 — if you have not done it yet
• NRI Investing 101 — if you are or might become an NRI
• Income tax calculator — to run scenarios

Tax planning, like investing, is a yearly discipline — not a March panic.