KYC for ITR 2025: New rules, guidelines, and what every taxpayer must know
As the deadline for filing Income Tax Returns (ITR) for Assessment Year 2025–26 nears, the Income Tax Dept has made Know Your Customer (KYC) compliance more critical than ever. Here’s a breakdown of the new KYC rules and filing principles that you must follow.
What’s New in KYC for ITR Filing AY 2025–26?
From this year, the I-T Department has introduced enhanced KYC-linked verification before and during ITR filing. The goal is to:
- Ensure accurate matching of PAN with Aadhaar, bank accounts, and mobile numbers.
- Eliminate fake or duplicate PAN-linked filings.
- Reduce refund fraud and misreporting.
You must ensure all your KYC details are updated across key platforms before filing.
KYC Documents to Verify Before Filing
Before you begin, ensure these five KYC points are updated:
| KYC Detail | Where to Verify/Update |
| PAN–Aadhaar Link | Income Tax Portal |
| Mobile number & Email ID | Profile section on Income Tax Portal |
| Bank account (for refund) | Add & pre-validate on I-T portal |
| Demat account (if any capital gains) | Must be KYC-compliant per SEBI |
| Passport or OCI details (for NRIs) | Update under profile if applicable |
New Mandatory KYC Principles in 2025
Here’s what’s changed or reinforced this year:
- PAN-Aadhaar linking is compulsory for all residents. Your return won’t be processed if PAN isn’t linked to Aadhaar.
- Bank accounts for refunds must be pre-validated and KYC-updated.
- Non-updated mobile/email in the I-T portal may cause OTP delivery issues for e-verification.
- Name mismatch in PAN and Aadhaar will now throw filing errors.
New ITR Forms Ask for KYC Declarations
From AY 2025–26, several ITR forms (especially ITR-2 and ITR-3) include specific fields to confirm your Aadhaar and PAN linkage and whether your bank account is KYC-compliant.
You must:
- Tick “Yes” for KYC-compliance fields.
- Ensure your AIS and TIS data matches details declared in ITR.
- Verify your profile before submitting to avoid mismatches and errors.
For NRIs and OCIs: Extra KYC Steps Required
If you’re a Non-Resident Indian or hold an Overseas Citizen of India (OCI) card:
- Update foreign mobile number and address in I-T portal.
- Disclose foreign bank and demat accounts (if any income from them).
- Link passport/OCI ID if required for KYC authentication.
NRIs must also choose the correct residential status in the profile and form.
Why Proper KYC Matters for Refunds and Validity
Failure to complete your KYC on the portal may lead to:
- ITR being marked as defective under Section 139(9),
- Refund delays, especially if the bank account is not verified,
- Return not being processed or e-verified on time.
Checklist Before Filing Your ITR
- PAN and Aadhaar are linked
- Mobile and Email are updated on the I-T portal
- Bank account is pre-validated and set as default for refund
- Your name and DOB match across PAN, Aadhaar, and bank
- For NRIs: Passport details updated, foreign address added
Final Word
KYC is no longer just a formality, it’s now a precondition to a successful and valid ITR filing. Whether you’re a salaried employee, freelancer, investor, or NRI, your ITR may be held up or even rejected if your PAN, Aadhaar, bank, and contact details aren’t accurately mapped and verified.
Pro tip
Login to https://incometax.gov.in, click on “My Profile,” and ensure everything matches. It takes 5 minutes — and saves weeks of refund or filing complications.
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