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Income-tax refund for AY 2026-27: This mistake can delay your refund. Here’s what to do

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By Sangeeta Ojha

3 min read | Updated on May 23, 2026, 09:47 IST

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SUMMARY

The income tax department notifies different ITR forms each year to suit various categories of taxpayers. Selecting the correct form is essential, as filing in an incorrect form may render the return defective.

Income-tax refund for AY 2026-27

Before filing your Income Tax Return for AY 2026-27, it is important to choose the correct ITR form based on your income sources. | Image: Shutterstock.

Filing your Income Tax Return (ITR) on time does not always guarantee a quick refund. For Assessment Year 2026-27, choosing the wrong ITR form, can delay your refund for Financial Year 2025-26.

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The tax department notifies different ITR forms each year to suit various categories of taxpayers. Selecting the correct form is essential, as filing in an incorrect form may render the return defective.

The first step is choosing the right income tax form, Also apart from incorrect form, entering incorrect bank details, or failing to verify your return can delay the refund process by weeks.

The good news is that these common mistakes are easy to fix, provided you identify them early and take corrective action quickly.

What happens if you file a wrong ITR form?

"Filing your Income Tax Return (ITR) using the wrong ITR form can lead to multiple issues, even if you have correctly reported your income. The Income Tax Department may treat such a return as a “defective return” under Section 139(9) of the Income Tax Act," said CA Abhishek Soni, CEO & Co-founder, Tax2win.

Before filing your Income Tax Return for AY 2026-27, it is important to choose the correct ITR form based on your income sources. Salaried employees, freelancers, business owners, and investors all fall under different categories, and selecting the wrong form can lead to notices, defective returns, or delayed refunds. To make the process easier, here’s a quick guide on which taxpayers should use ITR-1, ITR-2, ITR-3, or ITR-4, and what has changed this year. For a detailed breakdown, read our previous article here

What are the risks and consequences of filing the wrong ITR form?

Some common consequences are:

  • You may receive a notice from the Income Tax Department asking you to correct and refile the return within a specified time, usually 15 days.

  • Your tax refund can get delayed until the defect is corrected.

  • If you do not respond within the deadline, your return may be treated as invalid, which means it will be considered as if no ITR was filed at all.

In such cases, consequences of non-filing may apply, such as late filing fees, interest on unpaid tax, and loss of certain benefits like carrying forward capital losses.

"In some cases, incorrect form selection can also trigger scrutiny or additional queries from the department, especially if income like capital gains, business income, foreign assets, or crypto income is reported in the wrong form," said CA Abhishek Soni.

ITR filing last date FY 2025-26 (AY 2026-27)

ITR filing last date for individuals not subject to tax audit is 31st July 2026. However, if you miss this date, you can file a belated return until 31 December 2026, but late filing fees and interest will apply.
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About The Author

sangeeta-ojha.webp
Sangeeta Ojha is a business and finance journalist with experience across leading media platforms like Mint and India Today. She has built a reputation for covering a wide range of personal finance topics, including income tax, mutual funds, insurance, savings and investing.

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