ITR Filing 2026: Data Mismatches, Property Tax Rule Changes Pose Challenges Ahead of July 31 Deadline

With the July 31 ITR filing deadline approaching, tax experts are urging taxpayers to verify all financial information carefully instead of relying solely on the pre-filled data available on the Income Tax Department`s e-filing portal.

Experts warn that mismatches between the Annual Information Statement (AIS), Form 26AS, Form 16, bank statements, broker records, and personal financial documents are among the most common reasons for scrutiny notices. Taxpayers are also advised to select the correct ITR form, especially if they have income from capital gains, foreign assets, ESOPs, cryptocurrencies, or overseas sources.

Another key concern this year is the revised taxation of residential property sales. Property owners who purchased homes before July 23, 2024 can choose between the old 20% long-term capital gains (LTCG) tax with indexation or the new 12.5% LTCG tax without indexation, making careful tax calculation essential.

Despite minor technical issues during peak periods, the Income Tax Department said its e-filing portal has remained largely stable. The government also stated that the new Income Tax framework and upgraded portal have improved the filing process, enabling faster refunds and a more taxpayer-friendly system.

Taxpayers are encouraged to file their returns well before the July 31 deadline to avoid last-minute issues.