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After the end of the financial year, the process of filing Income Tax Return (ITR) has started. There is a competition among taxpayers to get refund quickly, due to which many people file their returns in the initial days or start preparing for it. But if you are also thinking of filing ITR this month (before May 31), then wait!
Well-known Chartered Accountants (CAs) of the country have advised taxpayers not to file ITR before May 31. Let us understand from the experts why there is a refusal to file returns so early and what are the technical and practical reasons behind it.
Why is it necessary to wait till 31st May? (Why waiting is essential?)
Filling ITR in a hurry can cause big trouble for you later. The main reason behind this is that important tax related documents are not completely updated.
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Last date for TDS filing: According to CA Santosh Mishra, the most important documents to file ITR include Form 16, AIS (Annual Information Statement) and Form 26AS. The last date to file TDS returns for employers (companies) and banks is 31 May.
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Updating of documents: Companies get additional time of 15 days to issue Form 16 after filing TDS. However, only after May 31, all this information gets linked to your PAN card and starts appearing in your income tax account. Your AIS, TIS and Form 26AS are completely synced and updated only after 31st May.
Disadvantages of filing ITR before May 31 (Risks of Early Filing)
CA Ajay Bagadia says that if you file your return before all these documents are completely updated, there may be a mismatch between the department’s figures and your claims:
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Income tax notice: If any difference is found in the income declared by you and the records filed with the department, you may receive a notice from the Income Tax Department.
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Hassle of revised return: To correct the mistake, you will have to file a revised return (Revised ITR), which will increase both your time and expenses.
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Delay in refund or less refund: Since your complete TDS data is not updated in the initial days, filing the return in a hurry may delay your refund or you may get less refund. Many times additional tax liability arises without any reason.
Taxpayers in a hurry often make these mistakes
CA Abhinandan Pandey said that many taxpayers fill ITR quickly only on the basis of their main salary (salary slip). They ignore income from other sources, such as:
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Bank interest received on Savings Account.
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Earnings from fixed deposits (FD).
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Profit or dividend received from share market or mutual fund.
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Any other secret or small investment.
All this information starts appearing automatically in your AIS (Annual Information Statement) after May 31. If this earning is present in the records of the Income Tax Department and you have not shown it in your return, then it is considered as tax evasion or hiding information, after which action can be taken by the department.
Advice: For safe and accurate tax filing, wait till May 31, cross-check your AIS and 26AS with Form 16 and only then file your ITR.
