The Income Tax (I-T) Department has received as many as 6 lakh returns in the first month of Assessment Year 2024-25 (FY25). Significantly, nearly two-thirds of the verified returns have already been processed, reported Business Line.
Over 5.92 lakh returns were filed by April 29. Out of these, over 5.38 lakh had been verified and 3.67 lakh verified returns were processed. In a first, the department had enabled the e-filing portal on Day 1 of the new financial year. “This is a giant step towards ease of compliance and seamless services,” the department said.
Experts opine that early filing can help taxpayers get refunds sooner. Additionally, it gives them more time to revise or correct returns without penalty.
ALSO READ: Income Tax Refund: How to claim, check online status and more
However, they suggest that salaried persons should wait for some time. The last date for individuals and entities to file their income tax returns (ITR) is July 31.
Refunds based on order of filing
Suresh Surana, Founder, RSM India, says the department prioritises refunds based on the order of filing. So, submitting the return of income early means early processing of returns and receipt of refunds. Also, by completing their returns early, taxpayers can circumvent the rush and last-minute errors, the report said.
Filing ITR early is recommended for those who have a large TDS (Tax Deducted at Source) and do not expect any additional TDS in the last quarter of FY24.
The deadline to submit TDS returns for Q4 is May 31, and accordingly, Form 26AS is updated.
If a tax return includes TDS claims not reflected in Form 26AS, and the tax return is processed before Form 26AS is updated, it can result in unexpected tax demands.
Therefore, if taxpayers anticipate TDS in the final quarter, it is advisable to wait for Form 26AS to be updated with TDS before filing the tax returns.
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Published: 03 May 2024, 07:19 PM IST