ITR filing: Why you shouldn’t rush to file taxes as soon as the portal opens

– Advertisement –

Whenever the income tax return opens, all the tax payers want to file the return as soon as possible. No one wants to wait for a long time. If you are also among those who file tax as soon as the portal opens, then this news is for you.

Let us tell you what can be the right time and method of tax filing. You should hurry in filing or not. Let’s understand.

– Advertisement –

Whenever the portal of IT file is open, it is important to wait for some important information to be updated before filing. Experts say that taxpayers should wait till June 15. Because banks, employers and other institutions have a deadline of May 31 to update the information of financial transactions, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). After this, it may take 7 to 10 more days for this information to be updated in Annual Information Statement (AIS) and Form 26AS.

What will happen if ITR is filed early?

If taxpayers file ITR before AIS and Form 26AS are fully updated, there may be a discrepancy in the information. For example, suppose an employee’s employer deducts TDS of Rs 10,000 every month. By March 2025, this amount becomes Rs 1.2 lakh. But if the employer does not update the TDS for the January-March quarter by May 31, the tax department’s system will show only Rs 90,000 TDS. The taxpayer can claim TDS of Rs 1.2 lakh on the basis of his salary slip, which will cause a discrepancy in the data. This may lead to a notice from the tax department.

In such a situation, two situations can arise. First, if the taxpayer submits the details of TDS and income for the entire year, but it is not updated in AIS/26AS, then a notice can be received. In this case, the taxpayer can file a rectification to reprocess the return. Second, if the taxpayer submits data for only nine months, then the difference in income or TDS will be visible when AIS and 26AS are updated. In such a situation, a revised return will have to be filed by December 31. If this deadline is missed, then an updated return may have to be filed with additional tax and interest.

What should be done?

Experts believe that taxpayers should wait for AIS and 26AS to be fully updated. Employers usually issue Form 16 by June 15, which contains complete details of salary and TDS. During this time, taxpayers can gather their financial information and match it with AIS when it is updated. If there is any mistake in AIS, taxpayers can request for correction through the portal. Taxpayers whose income is only from fixed deposits or rent and no TDS has been deducted can file returns early. However, in cases related to TDS or TCS, it is necessary to disclose the full amount.

Tax experts say avoid rushing to file ITR. Waiting until the Statement of Financial Transactions (SFT), AIS and 26AS are updated reduces the chances of errors and notices. Filing returns with accurate information at the right time is the safest way.

– Advertisement –