Should you file income tax returns in April or wait until July 31? Here’s what experts say

• May 2, 2024
• CA Chandan Agarwal's Office

If there are any discrepancies or missing documents, you have enough time to sort them out. This proactive approach can save you from last-minute hassles and potential penalties.

The usual timeline for filing income tax returns (ITR) in India is from April 1 to July 31 of the assessment year.

This gives taxpayers a four-month window to fulfil their return.

However, the question that often arises is whether one should file the ITR early in April or wait until they receive Form 16 or until the last date, i.e., 31 July of every year.

Experts say that early filing of the ITR is a smart move. It gives you ample time to gather all the necessary documents, such as Form 16, pay slips, and savings certificates, ensuring a smooth and stress-free process. If there are any discrepancies or missing documents, you have enough time to sort them out.

This proactive approach can save you from last-minute hassles and potential penalties.

However, experts also believe it is valid to argue for postponing filing until the deadline is nearer, particularly if there are any expected corrections in TDS or if the taxpayer foresees any significant income changes.

Divya Baweja, Partner, Deloitte India, said, “With the timely availability of ITR forms this year, taxpayers have the option to file their returns much earlier than the due date. However, the taxpayers who have income on which taxes have been deducted at source, such as salary, dividend, etc., may still need to wait till June to file the return since the due date for issuance of Form 16/ Form 16A is 15th June. Also, this will help in ensuring that the tax return is in sync with the information available with the tax authorities on their portal; else, it may lead to further questioning in case of any mismatch in the income or tax deducted details.”

Besides all this, one important reason for early filing is getting quick refunds. If a refund is due, filing the ITR early means the refund will be processed sooner. During peak filing times, just before the final date of 31 July, the income tax department gets busy, which can delay your refund.

Source: https://www.businesstoday.in/personal-finance/tax/story/should-you-file-income-tax-returns-in-april-or-wait-until-july-31-heres-what-experts-say-427826-2024-05-01