ITR Filing AY 2026-27: Don’t miss any bank account while filing your tax return. Here’s why
Taxpayers filing their income tax returns (ITR) for Assessment Year (AY) 2026-27 should ensure they disclose details of all bank accounts held in India during the financial year 2025-26, not just the account used for salary credits or day-to-day transactions.
The requirement is specified in the Income Tax Return forms notified by the Central Board of Direct Taxes (CBDT). The forms require taxpayers to provide details of all bank accounts held at any time during the previous year, except those officially classified as dormant by the bank. Failing to disclose an eligible account may lead to incomplete reporting and could create issues if the Income Tax Department seeks clarification later.
Which bank accounts need to be disclosed?
The ITR forms require taxpayers to disclose details of every Indian bank account held during the previous financial year. This includes savings accounts, current accounts and other eligible accounts that remained active at any point during FY 2025-26.
Importantly, the disclosure requirement is not restricted to accounts that are active on March 31, 2026. Since the forms ask for accounts “held at any time during the previous year”, even an account that was closed during the financial year may need to be reported.
The only exception is a bank account that has been officially classified as dormant by the bank. Taxpayers should not assume an unused account is dormant merely because there have been no recent transactions. Banks classify accounts as dormant based on their internal rules and records.
For each account, taxpayers are generally required to provide details such as the bank name, account number, IFSC code and account type.
Why accurate bank account details are important
Bank account details are also critical for receiving an income tax refund.
The ITR forms require taxpayers to select one or more validated bank accounts for refund credit. After the return is processed, the Income Tax Department may credit the refund to any one of the validated accounts selected by the taxpayer.
Before filing the return, taxpayers should ensure that the selected account is operational, linked with their PAN and validated on the income tax e-filing portal. Incorrect account numbers, wrong IFSC codes or selecting a closed account can delay the refund process.
Keeping bank account details updated on the e-filing portal can help avoid unnecessary delays after the return is processed.
Reporting the account is not enough. Don’t forget interest income
Declaring a bank account in the ITR does not automatically mean that the income earned through it has been reported.
Taxpayers should separately disclose interest earned from savings accounts, fixed deposits and recurring deposits under the appropriate head of income. Even if tax has not been deducted at source (TDS), such interest may still be taxable depending on the taxpayer’s total income.
Before filing the return, it is advisable to reconcile interest income reflected in bank statements with Form 26AS and the Annual Information Statement (AIS). This helps ensure that all taxable income has been correctly reported.
A final review of the return should include checking that all reportable bank accounts have been disclosed, refund account details are accurate and all interest income has been included. Taking these steps can help taxpayers avoid refund delays and reduce the chances of having to file a revised return later.
