Indian salaried taxpayers filing Income Tax Returns (ITR) for FY 26 must follow updated disclosure rules to ensure timely refunds [1].

Correct filing is critical this season because errors in bank details or the selection of the wrong ITR form can lead to significant delays in receiving government refunds [1]. For those who changed employers, failing to merge multiple tax documents may trigger official tax notices [3].

Chartered Accountant Suresh Surana said choosing the right ITR form and updating bank details are the most common reasons for refund delays [1]. He said taxpayers must be diligent with their documentation to remain compliant with the current rules.

One major hurdle involves outdated banking information. The Income Tax Department said that if a refund has already failed due to incorrect bank details, the taxpayer must submit a Refund Re-issue Request [2]. Refunds will remain on hold if the bank details are not current [2].

Taxpayers who switched jobs during FY 2025-26 face additional complexities. A tax expert said these individuals need to consolidate multiple Form 16s to avoid tax notices [3]. This process ensures that all income from various employers is accurately reported for the Assessment Year 2026-27 [2].

Proper consolidation prevents the discrepancy between reported income and tax deducted at source, which often leads to automated flags by the tax department [3]. Filers are encouraged to verify their bank account validation status on the official portal before submitting their final return to prevent the need for re-issue requests [2].

“Choosing the right ITR form and updating your bank details are the most common reasons for refund delays.”

The emphasis on bank detail validation and Form 16 consolidation reflects the Income Tax Department's move toward more automated, data-driven auditing. By requiring taxpayers to proactively resolve discrepancies and verify accounts, the government reduces the administrative burden of failed payments and manual corrections, shifting the responsibility of accuracy entirely onto the filer.