Income Tax Returns: The e-filing income tax portal has enabled the process for filing online income tax returns (ITR) for the financial year 2023-24 (assessment year 2024-25) as of April 1. Alongside this, utilities for the most commonly used ITR forms have also been released. For salaried individuals, it is recommended to wait until June 15 to file their returns.
This delay allows for the most accurate and updated Annual Information Statements (AIS) and Form 26AS, which are usually fully updated by May 31. This precautionary measure helps prevent penalties that may arise from underreported income due to incomplete information.
The final date for salaried individuals to file their income tax returns for FY 2023-24 (AY 2024-25) is July 31, 2024. Financial institutions are required to submit a Statement of Financial Transactions (SFT) to the income tax department each year. This statement provides detailed information on various taxpayer transactions throughout the financial year. The AIS, which captures this information, includes details on salary income, tax deductions, and interest earned from savings accounts.
Moreover, the deadline for filing a Tax Deducted at Source (TDS) return for the final quarter of a fiscal year is May 31. TDS returns are filed quarterly by the tax deductor. Upon filing a TDS return, the information in Form 26AS is updated to reflect the total taxes deducted or collected against an individual's Permanent Account Number (PAN).
For salaried individuals and other taxpayers, waiting for complete and precise information before filing their income tax returns is crucial. This approach ensures that all income is accurately reported, thereby avoiding penalties. Nonetheless, individuals who have complete information about their total income earned during FY 2023-24 (AY 2024-25) and have no TDS or TCS deductions may choose to file their ITR without waiting until June 15.
In summary, while the e-filing portal is operational, waiting until June 15 ensures that all financial details are thoroughly updated, which helps in filing accurate returns and mitigating the risk of penalties for underreported income.