When to Start Filing ITR for Salaried Individuals for the FY 2023-24?
Don’t rush!
While the income tax return (ITR) filing process for the financial year 2023-24 has started on the IT portal, it’s generally advisable for salaried individuals to wait until June 15th, 2024 before filing their returns. This strategic approach can save you time, money, and unnecessary mismatch notices from IT office.
it’s generally advisable to wait until June 15th, 2024. Here’s why:
- Incomplete Information: Key documents like your Annual Information Statement (AIS) and Form 26AS are typically updated by May 31st, 2024. These documents contain details about your income from various sources, investments, deposits and taxes deducted. Filing your ITR before this date might lead to missing information.
- Form 16 Wait: Employers generally have due date to issue Form 16, a TDS certificate summarizing your salary and taxes deducted, till June 15th, 2024. This ensures all your income details are included in your return.
Understanding the Importance of AIS and Form 26AS:
These documents are crucial for accurate ITR filing. Your Annual Information Statement (AIS) acts as a consolidated record of your financial transactions throughout the year. Banks, sub-registrars, and other financial institutions submit Statements of Financial Transactions (SFTs) to the income tax department by May 31st, 2024. These SFTs feed into your AIS, reflecting details like salary income, interest earned on savings accounts, dividend income, and more. Similarly, Form 26AS is a tax credit statement issued by the income tax department. It summarizes the taxes deducted at source (TDS) on your income by your employer and other entities throughout the financial year. By waiting until June 15th, you ensure both AIS and Form 26AS are updated with the latest information, minimizing the risk of missing crucial income details in your ITR.
The Significance of Form 16
As a salaried individual, your employer plays a key role in your ITR filing process. Form 16, a TDS certificate issued by your employer, summarizes your salary income for the financial year and the taxes deducted at source (TDS). This form is typically issued by June 15th, 2024. By waiting until this date, you can ensure your ITR reflects the most accurate salary income and TDS information as reported by your employer. This not only simplifies the filing process but also reduces the chances of discrepancies that could lead to delays or penalties.
Why Complete Information Matters
Filing your ITR with incomplete data can lead to a domino effect of problems. Here’s why ensuring complete information is crucial:
1. Tax Notices and Scrutiny: The income tax department relies on information from AIS, Form 26AS, and other sources to verify your ITR filing. If there are any discrepancies between your ITR and their records, you might receive a tax notice for underreporting income. This can be a time-consuming ordeal, involving responding to the notice, potentially furnishing additional documents, and possibly facing delays in processing your return.
2. Penalties for Mistakes: Inaccuracies in your ITR, whether intentional or unintentional, can be classified as misreporting or under-reporting of income. The Income Tax Act, 1961, outlines penalties for such mistakes. These penalties can range from 50% to 200% of the tax payable on the unreported amount. A 50% penalty applies to under-reporting due to reasons like negligence or omission of certain income sources. However, a harsher 200% penalty can be imposed in cases of deliberate misreporting.
3. Impact on Future Tax Benefits: Timely and accurate ITR filing can be beneficial in the long run. For instance, some tax benefits and deductions, such as those for home loan repayments or medical expenses, require valid ITR filing as proof of income. Delays or errors in ITR filing can lead to missing out on these benefits in future years.
Benefits of Waiting Until June 15
Waiting until mid-June offers several advantages that can make the ITR filing process smoother and less stressful:
1. Accuracy: By waiting until June 15th, you’ll have access to the most up-to-date income information from AIS, Form 26AS, and Form 16. This comprehensive data ensures a more accurate and complete ITR filing, reducing the chances of errors and inconsistencies. With complete information at hand, you can file your ITR with greater confidence and peace of mind, knowing that it reflects your true income picture.
2. Convenience and Efficiency: Having all documents in hand, including Form 16 from your employer, simplifies the filing process. You can easily cross-check the details in your ITR with the information on these documents, minimizing the risk of errors and omissions. This streamlined approach saves you time and effort compared to filing with incomplete data and potentially having to revise your ITR later.
3. Peace of Mind: By using complete data, you can avoid potential tax notices and penalties associated with under-reported income.
4. Convenience: Having all documents in hand (including Form 16) simplifies the filing process and reduces the risk of errors.
Exception:
If you have no TDS deducted and possess complete income information for the financial year 2023-24, you can file your ITR before June 15th. However, consulting a tax professionals is always recommended for a smooth filing experience.
Conclusion: Waiting until June 15th to file your ITR offers several benefits, including access to updated documents like AIS and Form 26AS, and receipt of Form 16 from your employer. This approach enhances accuracy, reduces the risk of errors and penalties, and provides peace of mind during the filing process. However, exceptions exist for those with complete income information and no TDS deducted. Consulting tax professionals can further streamline the process for a hassle-free experience.
Author Bio
