Taxpayers should avoid filing ITR before June 15: Here's why
The income tax department recently notified the income tax return (ITR) forms to be used for filing tax returns for FY 2024-25 (AY 2025-26). However, unlike previous years, when the ITR forms were notified well in advance, this year they were notified by the end of April 2025. Further, the income tax department has yet to release the utilities, i.e. the online software/forms necessary for filing ITRs. Tax experts advise postponing the filing of ITRs until June 15, 2025, even though the ITR forms are available now. ET Wealth online explains why it is advisable to defer filing your ITR till after June 15 and the problems you can face if you file it before.
Also Read: 9 changes in ITR forms for FY 2024-25 (AY 2025-26)
As per income tax rules, taxpayers should get their TDS certificates, such as Form 16 or Form 16A, latest by June 15. Chartered Accountant Prakash Hegde says, "When the taxpayer has earned any income in the last quarter of FY 2024-25 (January 1-March 31, 2025) that is subject to TDS, the payer of that income has time until May 31, 2025, to file the eTDS return with the income tax authorities. The eTDS return captures the details of the income paid to the taxpayer and tax deducted on it."
The payer of income might be the taxpayer's employer (i.e., for salary), bank (i.e., for interest on deposit), company in which the taxpayer holds the shares (i.e., for dividends), buyer of property in the case of a non-resident (i.e. for capital gains), tenant of a non-resident (i.e., for rent), customer/client of a contractor/professional (i.e., for contract payments/professional fees), etc. Hegde says, "Once the eTDS return is filed, it may take up to 3-4 days for the same to get processed and reflected in Form No. 26AS of the taxpayer. If the payer of income files the eTDS return on May 31, the details of income and TDS could be available in Form No. 26AS of the taxpayer by the end of the first week of June. Further, the payer of the income is required to issue a TDS Certificate in Form No. 16 (annual certificate for salary) or Form No. 16A (quarterly certificate for other income) to the taxpayer by June 15. These certificates show the exact details of the income and the TDS deducted and paid by the payer of the income."If taxpayers have these TDS certificates, ITR filing becomes easier. Due to technological advancements, the information from the TDS certificates is auto-populated in the ITR forms. A taxpayer can cross-check the information in TDS certificates, ITR forms, and the Annual Information Statement (AIS) to ensure that the correct information is given to the income tax department while filing the ITR.
Also Read: Can you claim LTA tax exemption in new tax regime?
Hegde says, "As per the changes made in the income tax law in recent years, even where TDS is not deducted, the reporting entities (e.g., banks, companies, mutual funds, etc.) are required to report several kinds of financial transactions called Specified Financial Transactions (SFT) to the income tax authorities by filing an Annual Information Return. The reporting of financial transactions by reporting entities is subject to a certain threshold. Examples of such transactions are cash transactions, fixed deposits, credit card payments, purchase of bonds/debentures, investment in company shares, etc. All this information pertaining to a financial year must be reported by the concerned entities by May 31 of each year. Thereafter, the data gets processed in a few days (which may vary between 5 and 10 days) and gets reflected in the taxpayer's Annual Information Statement (AIS). The final version of the AIS will likely be available in the income tax portal by the second week of June." Tarun Kumar Madaan, a practising Chartered Accountant, says, "Once the income tax department enables the ITR utilities, early versions of the filing utility often experience technical glitches, which may cause calculation errors, system failures, or data validation issues. Allowing a buffer of a few days gives the system time to stabilise, ensuring smoother filing."
Hegde says, "If a taxpayer rushes to file his ITR before Form No. 26AS, Form No. 16/16A, and AIS are available to him, there is a possibility of reporting incorrect details of income and TDS. This is because he may miss some critical information relevant to filing his ITR. If he misses such information and files the ITR, he must file a revised return, allowed until December 31 to provide correct information to the tax department. Hence, it is advisable to wait till June 15 for filing ITR."
Madaan says, "Mismatch in AIS, or Form 26AS or non-reporting of TDS, even if done unintentionally, can result in tax notices or scrutiny assessments, delayed refunds or denial of legitimate TDS and even the requirement to file a revised return." He further adds, "When the income tax return is processed by the Centralised Processing Centre (CPC), TDS credit is allowed only for entries appearing in Form 26AS. If TDS has been deducted but not yet reflected in 26AS, the credit will be denied initially, which could affect your refund or result in a tax demand being raised. While a correction can be made later through rectification or revised returns, it delays resolution and complicates compliance."
Conclusion While the Income Tax Act does not restrict early filing, for most salaried individuals and small taxpayers, filing after June 15 ensures complete and reconciled tax credit data and a lower risk of compliance issues or mismatched reporting.Madaan says, "Unless your ITR is urgently required for purposes such as loan approval or visa purposes, it is prudent to wait till June 15 to have all the required information to file ITR. In tax compliance, accuracy is far more valuable than speed provided the ITR is filed before the due date. A few extra days of patience can prevent future complications, safeguard your refunds (if eligible), and ensure that your ITR is filed right the first time."
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