In India, many taxpayers file their Income Tax Return (ITR) early to get a head start. However, experts advise waiting until Form 26AS and the Annual Information Statement (AIS) are fully updated. Filing too early can lead to significant issues and discrepancies.
Risks of Filing Your ITR Too Early
If taxpayers file their Income Tax Return (ITR) before Form 26AS and the Annual Information Statement (AIS) are fully updated, it can lead to significant problems. These forms usually take about a week to reflect updates after the TDS and Statement of Financial Transactions (SFT) filing deadline on May 31. Here are the risks associated with filing your ITR too early:
- Your Income Tax Return (ITR) might show discrepancies related to Tax Deducted at Source (TDS) or reported income
- If there are discrepancies, you may receive a notice from the Income Tax Department.
- If the claim for TDS is missing, in some cases, you might need to file a revised return.
- Additionally, if you update your income tax return (ITR) after December 31, you may incur higher taxes along with applicable interest and penalties.
Taxpayers: Here's Your Next Step for ITR Filing
- Every taxpayer should wait for Form 26AS and Annual Information Statement (AIS) updates, which are typically available by June 15.
- In such a case, taxpayers can use this time to collect and confirm their financial information.
- Please check your records against the AIS to ensure they are accurate.
- Please submit a revised return by December 31 to avoid incurring higher penalties.
File Your ITR Easily with Gen Income Tax Software
Gen Income Tax Software, coded by SAG Infotech Private Limited, has introduced new features and improvements to ease the tax filing process. Users can now easily electronically file the latest Income Tax Return (ITR) forms, specifically ITR-1 and ITR-4, providing a more convenient online experience while reducing paperwork. Additionally, Gen IT software now includes preview feature for the ITR-6 form, enabling users to review their forms per the recent schema updates.
The software now includes a new WhatsApp feature in the reporter’s print preview, making it easy to share documents like PDF files through WhatsApp or email. SAG Infotech’s Gen Income Tax Software also offers convenient tools such as bank account validation, the ability to send summarised reports via email, and sharing income tax remarks through both WhatsApp and email. It provides schedule-wise previews of ITR forms and permits users to directly download XML or JSON files from the IT portal.
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