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Reasons why not to file Income Tax Return before 15th May


Posted on October 01 2020

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The very first thing to say is that the government has taken a great step by making the ITR forms available on the 1st of April itself. Even though the last date of filing the Income Tax Return is on 31st July for individuals. People have already started filing their Income Tax Return since the first week of April itself. Therefore, there are few points which is important for everyone to know regarding the filing of their Income Tax Returns before the 15th of May, especially for the salaried class, for whom FORM 16 and 26AS are the main documents for filing the ITR.
 
What is Form 26AS?
 
The form 26AS is nothing but a statement of the TDS which is deducted by the employer on your salary. Credit of TDS in form 26AS of individuals is reflected only after filing of the TDS returns by the employers. Nowadays, Form 16 is directly generated from TDS website (TRACES) after filing of the TDS returns.
 
Scheduled date of the TDS return: The due date of filing TDS returns is the quarter (15 th) of March. This signifies that your 26AS will not be updated and you will not get the Form 16 from the employer before 15th of May.
 
Relevant date of filing the ITR by individuals: The best and appropriate time to file ITRs by the individuals is from the 16th May to the 31st, why so?
 
If you file your Income Tax Returns before the 15th May, it may differ due to the TDS reflected in your salary slips and the TDS in the Form 16
 
From the statistics of last year, it was observed that 70 - 80 % of notices u/s 143(1) was issued by the IT department because of the mismatch of the TDS which was claimed in the ITR and the TDS which is shown in 26AS. This can be avoided simply by filing the ITR after the 15th of May.
 
Government is motivating people to file their income tax returns at the earliest, but early filing of the returns may lead to more variations in the TDS amount which results in the demand of tax and interest from the TAXMAN, hence increasing the trouble for the taxpayers. Government should also advance the date of filing the TDS returns from the next year so that the true spirit of early availability of the ITR forms is achieved. 
 
So we should wait for the employers to file the TDS return first.
 
TaxAssist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
 
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.

 


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 +91 98307 56567 |  info@TaxAssist.in