Income Tax Filing: Should you file ITR in April or wait until July 31?
Income Tax Filing: Should you file ITR in April or wait until July 31?
As the financial year comes to a close, taxpayers are faced with the decision of when to file their Income Tax Returns (ITR). While the Income Tax Department has provided forms and facilities for filing ITR in April itself, tax experts advise caution and deliberation before rushing into the process.
For many salaried individuals, the issuance of Form-16 by employers and TDS certificates by banks does not happen until after May 31. Form-16, which certifies TDS deductions by the employer, is crucial for accurate tax filing. Taxpayers relying solely on self-extracted information related to TDS may face discrepancies, inviting scrutiny from the Income Tax Department.
To avoid such complications, experts recommend waiting for Form-16 before initiating the filing process. This ensures that calculations align with official records, reducing the risk of discrepancies and subsequent inquiries.
However, certain categories of taxpayers, such as Non-Resident Indians (NRIs) and individuals with income solely from capital gains on property sales in India, may benefit from filing returns in April. For these individuals, filing early expedites the return process and facilitates quicker refunds, provided TDS returns have already been filed.
Tax experts emphasize the importance of timely filing, advising against procrastination but also cautioning against premature filing. Some consultants suggest filing returns before the last week of July to avoid last-minute rush and potential errors. They highlight the significance of waiting until after May 31, especially for taxpayers whose TDS deductions occurred in the last quarter of the previous financial year. Initiating the filing process after June 15 ensures the availability of accurate Form-16 and minimizes the likelihood of discrepancies.
In conclusion, while filing returns early may benefit certain taxpayers, exercising patience and prudence can prevent unnecessary complications and ensure a smooth and efficient filing process.
