Summary of this article
AY 2026-27 ITR requires disclosure of all active Indian bank accounts
Accounts closed during FY 2025-26 may still need reporting
Correct bank account and IFSC details help prevent refund delays
Savings, fixed deposit, and recurring deposit interest must be reported
A taxpayer may remember to report salary, capital gains and deductions, yet still overlook an old bank account. That can leave an avoidable gap in the return.
The Income Tax Return (ITR) forms for assessment year 2026-27 ask for details of every bank account held in India at any point during the previous financial year. The exception is an account classified as dormant.
So, reporting only the account used for salary or household expenses may not be enough. A second savings account, a current account, an overdraft account or an account closed midway through the year may also need to be mentioned.
1 July 2026
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Closed During The Year? It May Still Count
The key phrase in the form is “held at any time during the previous year.” This means the account need not have remained open on March 31 to fall within the disclosure requirement.
Suppose a taxpayer closed an account in December after shifting banks. Since the account existed for part of the year, its details may still have to be entered in the return, according to a recent report by NDTV Profit.
Dormant accounts are excluded, but taxpayers should not make that call merely because an account has not been used for months. An inactive-looking account may still be active in the bank’s records. It is better to confirm its status before leaving it out.
For each account, the form generally asks for the bank name, account number, IFSC and account type. These details can be checked from a passbook, statement, cancelled cheque or net-banking profile.
Refunds Depend On Correct Bank Details
At least one bank account must be selected for receiving an income tax refund. Before filing, check that the account is still open and that its number and IFSC match the bank’s records.
The refund may not go through if the account is closed or the account number or IFSC has been entered incorrectly. Taxpayers should also check whether the chosen account is linked with PAN and validated on the income tax portal.
More than one account may be selected for refund purposes. Where several validated accounts are listed, the refund can be credited to any one of them after the return is processed.
Do Not Forget Interest Income
Declaring an account does not automatically report the income earned through it. Interest from savings accounts, fixed deposits and recurring deposits must be checked separately.
This is particularly important where tax has not been deducted at source. The absence of Tax Deducted at Source (TDS) does not make the interest tax-free.
Before filing, taxpayers should compare bank statements with Form 26AS and the Annual Information Statement. A simple list of all accounts held during the year can also help.
The last review should cover account numbers, IFSC details, interest income and the bank selected for refund. Check these details before filing, or you may have to revise the return or follow up on the refund later.
FAQs
1. Which bank accounts must be disclosed in the ITR?
All Indian bank accounts held at any time during the financial year should be reported, except accounts officially classified as dormant.
2. Does an account closed during the year still need to be reported?
Yes. If the account was held for any part of the financial year, its details may still have to be included in the return.
3. What should taxpayers check when selecting an account for a refund?
The account should be open, correctly entered, linked with PAN, and validated on the income tax portal.
