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Is it advantageous to file your return before 31st July
Written by Gagandeep Arora Printed on - Date - 10th May 2024
An Income tax payer has a four-month window to file an Income tax return for the FY 2023-24 from April to 31st July. But still, an assessee is confused about whether to wait until the last minute or fulfil their duty as soon as possible. Although for some there is no choice but to wait for Form 16. Let us discuss furthermore the importance of filing an Income tax return early.
Advantages of Filing Tax Before July 31
Quicker Processing: Filing tax early ensures your return is processed sooner by the tax authorities, leading to quicker resolution and potential refunds.
Avoid Last-Minute Rush: Filing early helps you avoid the rush and potential technical glitches that often occur closer to the July 31 deadline, ensuring a smoother submission process.
Timely Refunds: Early filers stand a better chance of receiving their tax refunds promptly, as processing times are generally faster for returns submitted well ahead of the deadline.
Reduced Stress: By filing early, you eliminate the stress and pressure associated with last-minute tax preparations, allowing for a more relaxed and thorough approach to filing your returns.
Opportunity for Corrections: Filing early gives you more time to review your return for accuracy and address any errors or discrepancies before the deadline, reducing the risk of penalties or audit triggers.
Financial Planning: Early filing provides clarity on your tax liabilities and refunds, allowing for better financial planning and allocation of resources based on your actual tax situation.
Availability of Documents: Ensure you have all necessary documents, such as Form 16 (for salaried individuals), TDS certificates, and other income-related documents, before initiating the filing process.
Accurate Information: Double-check all the information provided in your return for accuracy, including income details, deductions, and tax credits, to avoid potential discrepancies or audit triggers.
TDS Filing by Deductors: For individuals whose taxes are subject to Tax Deducted at Source (TDS), ensure that your deductor entities have filed their TDS returns, as this is a prerequisite for the processing of your tax return by the income tax department.
Compliance with Tax Laws: Ensure that your tax filing complies with all relevant tax laws and regulations, including reporting income from all sources and claiming deductions and exemptions as per the provisions of the Income Tax Act.
Timely Submission: Aim to file your tax return well before the July 31 deadline to allow ample time for processing and potential refunds, while also avoiding any penalties or late fees for non-compliance.
While there's no rush to file returns in April, early filers can avoid the last-minute rush and technical glitches closer to the July 31 deadline. The sooner your return gets processed, the quicker you'll receive any tax refunds.
Avoid Last-Minute Rush: Filing early helps you avoid the rush and potential technical glitches that often occur closer to the July 31 deadline, ensuring a smoother submission process.
Timely Refunds: Early filers stand a better chance of receiving their tax refunds promptly, as processing times are generally faster for returns submitted well ahead of the deadline.
Reduced Stress: By filing early, you eliminate the stress and pressure associated with last-minute tax preparations, allowing for a more relaxed and thorough approach to filing your returns.
Opportunity for Corrections: Filing early gives you more time to review your return for accuracy and address any errors or discrepancies before the deadline, reducing the risk of penalties or audit triggers.
Financial Planning: Early filing provides clarity on your tax liabilities and refunds, allowing for better financial planning and allocation of resources based on your actual tax situation.
Conditions for Early Filing:
Availability of Documents: Ensure you have all necessary documents, such as Form 16 (for salaried individuals), TDS certificates, and other income-related documents, before initiating the filing process.
Accurate Information: Double-check all the information provided in your return for accuracy, including income details, deductions, and tax credits, to avoid potential discrepancies or audit triggers.
TDS Filing by Deductors: For individuals whose taxes are subject to Tax Deducted at Source (TDS), ensure that your deductor entities have filed their TDS returns, as this is a prerequisite for the processing of your tax return by the income tax department.
Compliance with Tax Laws: Ensure that your tax filing complies with all relevant tax laws and regulations, including reporting income from all sources and claiming deductions and exemptions as per the provisions of the Income Tax Act.
Timely Submission: Aim to file your tax return well before the July 31 deadline to allow ample time for processing and potential refunds, while also avoiding any penalties or late fees for non-compliance.
