The Income Tax Department has become so strict that even a small mistake can result in an Income Tax Notice. Many taxpayers think that they should follow the Income Tax rules as soon as possible and file the Income Tax Return. Therefore, many people file ITR as soon as the business year begins. But such people often get notices of mismatch and they get worried. So can filing ITR much before time become a cause of trouble? Watch this special show of CNBC Awaaz.
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Actually, the person who deducts tax also files a return. This is called TAN Return. The last date for this return is 31st May. After filing the TAN return, it starts appearing in your 26AS. That means its picture becomes somewhat clear by June. Now suppose you had filed the return in the beginning of April, then it will not appear in your 26AS. Same thing happens with AIS as well.
Income tax notice will not come this way
So, where taxpayers file their tax returns as soon as the business year begins to fulfil their responsibilities, this can be a problem for them. Tax expert Sharad Kohli said that it is a very good thing that you file income tax returns early but according to me, if you file income tax returns in mid-June, then the chances of getting a notice of mismatch are reduced.