Within the first month of Assessment Year 2024-25 (FY25), the Income Tax (I-Tax filingsT) Department has already processed a substantial number of returns, receiving around 6 lakh filings. Reports indicate that nearly two-thirds of these returns have been verified, with over 5.38 lakh returns already processed out of the 5.92 lakh filed by April 29.
Experts recommend early filing of income tax returns, highlighting the benefits of timely submissions. Not only does early filing expedite the refund process, but it also offers taxpayers ample time for revisions or corrections without incurring penalties.
The deadline to submit Tax Deducted at Source (TDS) returns for the fourth quarter is set for May 31, coinciding with the update of Form 26AS.
This proactive approach by taxpayers is facilitated by the I-T Department’s decision to enable the e-filing portal for ITR filings on the first day of the new financial year, marking a significant stride towards enhanced compliance and streamlined services, as lauded by the department.
Experts emphasize that filing early holds distinct advantages, particularly in terms of refund processing and error mitigation. An industry expert stated that the department prioritizes refunds based on the order of filing, underscoring the importance of early submissions for expedited processing and refund receipt.
While early filing is recommended for individuals with significant TDS deductions who do not foresee additional deductions in the final quarter of FY24, experts caution salaried individuals to exercise patience. The deadline for filing income tax returns (ITR) for both individuals and entities stands at July 31.
Moreover, it is crucial for taxpayers to synchronize their filings with the updated Form 26AS, especially if their returns include TDS claims not reflected in the form.
Filing before Form 26AS is updated can lead to unexpected tax demands, making it better for taxpayers anticipating TDS in the final quarter to wait for the form to update before filing their returns.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
