Income Tax Returns: Correct Details, Careful Filing Is The Game To Play
Here is how one can handle income tax return filings so that the process is completed smoothly.
The Income Tax Department has already released the details of various income tax return forms that taxpayers can use for the financial year 2023-24. This step, very early in the tax season, ensures that the taxpayers and chartered accountants can go through the requirements of the ITR forms and be ready with the details when it comes to the actual filing. Many people would like to file their returns quickly and complete the process. However, this might not be possible due to several reasons.
Here is how one can handle the entire situation so that the process is completed smoothly.
Focus On Getting Details Right
Taxpayers need to ensure that the details that they mention in their ITR are correct and at the same time it matches with the data that is available with the Income Tax Department.
Often, it has been seen that in the hurry or time pressure of filing returns some details are missed out or they are wrongly mentioned, leading to a bigger problem at a later stage when either the return has to be revised, or the taxpayer could end up getting a notice from the tax department about the mismatch of the details in their returns with the available data.
This is why the taxpayer should not immediately rush to file returns till the time that they have checked and verified the data that they need to submit.
Tax Deduction At Source
One of the main areas where taxpayers face a problem in filing their returns early is with respect to the tax deduction at source. There is TDS taking place from several sources, including salaries, interest income, dividends, among others.
The tax that has been deducted in the final quarter of the year is usually reflected in the tax records once the required TDS return has been filed by the tax deductor. It is witnessed that these details are available mostly in the month of June. The taxpayer cannot file their return until they have the TDS certificate details with them and till the time that this is issued, they are stuck and cannot move ahead even if they have all the other details ready. This is one of the main reasons where most of the people will find a bottleneck, which results in a position where the real return filing process happens only after the middle of June.
In some cases, especially when it comes to accrued interest, there is no way that the taxpayer even knows how much is the accrued income and the tax deducted till the time that they get the required Form 16A from the financial entity. In such cases, too, there is no option but to wait for the details to come before the ITR is filed.
Preparing Early
While one cannot file the return early till all the details are available, it does not mean that the taxpayers should not do anything else. It is important for them to ensure that they have started the process of collecting the other information related to their income and deductions if any and is kept ready.
The missing information and details can be added to the existing one when these become available. This will require the work to start on the return right from April, and it has its benefits too. The early start raises chances that the process will also be completed quickly. Once the missing details come, then the actual return filing activity can be done and this will free up the taxpayer early in the tax filing season.
Additionally, it can also mean a quicker assessment and possible refund if any.
Arnav Pandya is founder Moneyeduschool.
