Income Tax Returns: Over 600,000 Filed Within 30 Days
The Income Tax (I-T) Department has reported an impressive filing of over 600,000 returns within the first month of the Assessment Year 2024-25 (FY25). According to a report by Business Line, approximately two-thirds of the verified returns have already undergone processing.
By April 29, a notable 5.92 lakh returns had been filed, out of which over 5.38 lakh were verified, and 3.67 lakh verified returns had been processed. Notably, the e-filing portal was made accessible on the first day of the new financial year, marking a significant move towards enhancing compliance and service efficiency, as stated by the department.
Experts highlight the advantages of early filing, suggesting that it can accelerate the refund process for taxpayers and provide a greater window for revising or correcting returns without incurring penalties.
However, it is advised that salaried individuals exercise caution and consider waiting, as the deadline for filing income tax returns (ITR) for both individuals and entities is set for July 31.
Refund Prioritization Based on Filing Order
Suresh Surana, Founder of RSM India, emphasizes the department’s practice of prioritizing refunds in accordance with the order of filing. Hence, early submission of income returns translates to expedited processing and accelerated refund receipt. Additionally, filing early can help taxpayers avoid the rush and minimize last-minute errors, as mentioned in the report.
Filing ITR early is particularly advised for individuals with substantial Tax Deducted at Source (TDS) and no anticipation of additional TDS in the final quarter of FY24.
The deadline to submit TDS returns for Q4 is May 31, with Form 26AS being updated accordingly.
In situations where a tax return includes TDS claims not reflected in Form 26AS, and the tax return is processed before the update of Form 26AS, this may lead to unexpected tax demands.
Hence, individuals expecting TDS in the final quarter are encouraged to await the update of Form 26AS before filing their tax returns.