ITR Filing 2025: The Income Tax Department has released all Income Tax Return (ITR) forms for the financial year 2024-25 (assessment year 2025-26). Usually, these forms are issued at the very start of the new financial year, but this time they were notified only at the end of April. However, the necessary online software or utilities for filing ITR have not yet been released.
So, when should taxpayers file their returns? Should they file immediately once the portal opens, or wait for some time? Let’s find out:
Last Date to Receive TDS Certificates is June 15
According to income tax rules, taxpayers should receive their TDS (Tax Deducted at Source) certificates, such as Form 16 and Form 16A, by June 15 at the latest. Employers issue these forms to salaried employees.
Also, if a taxpayer has earned income subject to TDS during the last three months of the financial year (January to March 2025), the payer must file the e-TDS return by May 31. After this, the data is updated in the taxpayer’s Form 26AS.
This entire process and receiving TDS certificates take time, so getting accurate and complete information before June is difficult. Therefore, if you try to file your ITR as soon as the portal opens, you may face problems.
SFT and AIS Updates Also Come by June
In recent years, income tax rules have changed significantly. Many financial institutions are now required to report large transactions during the financial year, called Specified Financial Transactions (SFT). These reports are filed by May 31, but the data processing and updates in taxpayers’ Annual Information Statement (AIS) happen by the second week of June.
This is another reason to avoid rushing to file your income tax return early, as it increases the likelihood of data mismatches.
Risks of Filing Early
When the Income Tax Department releases initial ITR utilities, they often have technical glitches such as incorrect calculations, system failures, or data validation issues.
Moreover, if a taxpayer files ITR before June 15, the complete information may not be available in Form 26AS, Form 16/16A, or AIS, leading to inaccurate or incomplete reporting. This may require filing revised returns later, which consumes additional time and effort.
What Should Taxpayers Do?
- Ensure you receive your TDS certificates by June 15.
- File your ITR using accurate data from Form 26AS and AIS.
- Avoid rushing to file to prevent issues like tax notices, scrutiny, or refund delays.
Generally, it is better for taxpayers to file their ITR after June 15, when all financial data has been updated. This minimizes errors, prevents refund delays, and reduces the risk of receiving tax department notices.
When Should You File Early?
- If your income is only from salary, bank interest, or other simple sources, and Form 16 and Form 26AS are already available, you can file early.
- If you are eligible for an income tax refund, early filing may help you get the refund sooner, improving cash flow.
- If you need ITR for home loan, education loan, or visa purposes, early filing can speed up these processes.
- If your income, tax details, and declarations have not changed compared to last year, early filing is generally safe.
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