Early Bird Tax Filing: I-T Department Receives Impressive Response in FY24-25
MAS Team | 06 May 2024
The Income Tax (I-T) Department has witnessed an impressive response from taxpayers in the first month of the Assessment Year 2024-25 (FY24-25), receiving as many as 6 lakh returns. Significantly, nearly two-thirds of the verified returns have already been processed, as reported by Business Line.
The statistics reveal that over 5.92 lakh returns were filed by April 29, out of which more than 5.38 lakh had been verified, and 3.67 lakh verified returns were processed. In a first-of-its-kind move, the department enabled the e-filing portal on the very first day of the new financial year, marking a "giant step towards ease of compliance and seamless services," according to the department's statement.
Experts have highlighted the benefits of early filing, as it can help taxpayers receive refunds sooner and provide ample time to revise or correct returns without penalty. However, they suggest that salaried individuals may consider waiting for some time, as the last date for individuals and entities to file their income tax returns (ITR) is July 31.
The department prioritizes refunds based on the order of filing, meaning that submitting the return of income early results in early processing of returns and receipt of refunds. Additionally, by completing their returns early, taxpayers can avoid the last-minute rush and minimize potential errors, as per the report.
Early filing is particularly recommended for those who have a substantial amount of Tax Deducted at Source (TDS) and do not expect any additional TDS in the last quarter of FY23-24.
The deadline to submit TDS returns for the fourth quarter 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 the TDS before filing their tax returns.
The I-T Department's proactive approach and the impressive response from taxpayers in the early stages of the financial year signify a positive stride toward enhancing compliance and streamlining the tax filing process.