Many people have to file their returns early. However, this is not possible due to many reasons.
The Income Tax Department has released different Income Tax Return (ITR) forms, which taxpayers can use for FY23-24. This year it has been released at the beginning of the tax season itself. Taxpayers and chartered accountants can view the requirements of ITR forms and prepare the details. Many people have to file their income tax return early. However, this is not possible due to many reasons. Let us know how to complete the process quickly and without any problem.
One big difficulty that taxpayers face in filing early returns is related to tax deduction at source. TDS is collected from many sources. These include salary, interest income, dividend, etc. The tax deducted in the last quarter of the year generally appears in the tax records after the filing of TDS return. It has been observed that mostly these details are available in the month of June. Taxpayers cannot file their returns unless they have the TDS certificate details. And by the time it is released, they are stuck and cannot proceed further even if all the other details are ready.
This is one of the most important reasons where people will face problems. In such a situation, the process of return filing takes place only after June. In some cases, especially when it comes to interest accrued, the taxpayer does not know the amount of income accrued and tax deducted until he receives Form 16A from the financial entity. Even in such cases, there is no option other than waiting for the details to arrive.
It is important for taxpayers to ensure that the details they are filing in the ITR are correct and match the data available with the Income Tax Department. Often, due to haste or time pressure while filing returns, some details are omitted or filled incorrectly. This can cause big problems later on. The return may have to be revised or the taxpayer may receive a notice from the tax department regarding mismatch of the details given in the return.
Therefore, the taxpayer should not be in a hurry to file the return. They should check and verify the data before filing.
A person cannot file the return until all the details are available but this does not mean that taxpayers should not do anything else. It is important for them to start collecting information related to their income and deductions and keep it ready.
When this information becomes available, the missing details can be added. For this, work on returns will have to be started from April itself and it also has its benefits. Starting early increases the hope that the process will be completed soon.
When the missing details are received then the process of return filing can be done properly. This frees up the taxpayer at the beginning of the filing season itself. Apart from this, assessment and refund also happens quickly.