ITR Filing 2024: Taxpayers start filing Returns early to escape last minute rush
The Central Board of Direct Taxes (CBDT) enabled functionalities for commonly used ITR (income tax returns) from the 1st of April this year and taxpayers started filing their returns quite early this year just to escape the last minute rush.
The data from the income tax department shows that by 10th April, 119,000 numbers of income tax returns were filed for the financial year 2024-25, out of which 109,000 returns had already been verified.
To assist taxpayers in submitting their returns for AY24-25 which are often used by taxpayers, the CBDT made available ITR-1, ITR-2, and ITR-4 on the e-filing portal beginning April 1. Companies can also file their ITRs through ITR-6 beginning April 1.
According to experts, this is the latest effort CBDT took to help taxpayers comply with their tax returns. It had previously begun initiatives such as prefilled tax return forms, expedited processing of tax returns, and fast refunds, mainly for small taxpayers.
This will assist taxpayers who are not anticipating any deduction of tax at source (TDS) in the fourth quarter of the financial year 2023-24 and are not subject to an audit in filing their returns as soon as possible. These taxpayers may consider filing their returns without further delay in order to receive their tax refund, if any, sooner.
Yet, taxpayers who expect a TDS deduction in the 4th quarter – mainly salaried taxpayers and taxpayers expecting interest income in the 4th quarter, will have to wait until June 2024 to file their tax returns.
The deadline for depositing TDS in the government kitty for the final quarter of FY 2023-24 is April 30, 2024, and the deadline for filing the quarterly TDS return is May 31, 2024.
Given this, the TDS deducted in the last quarter may not appear on the taxpayers’ tax credit statement (Form 26AS) before June 1, 2024.
Therefore, returns filed by taxpayers before the date may be processed with income tax demands, and taxpayers may be required to file rectification applications or updated returns afterwards.
