Filing season begins, check all forms before filing ITRs

The online ITR filing for the Financial Year 2023-24, i.e, Assessment Year 2024-25, has commenced on the e-filing website of the Income Tax department. The ITR forms are available on the e-filing portal. However, if you are a salaried individual, it’s beneficial to wait a little before filing your returns. Otherwise, you might face inquiries or notices from the Income Tax department. Let’s understand how.

For employed individuals, it’s wise to wait until June 15th to file returns. This is because you need three things to file returns: AIS, Form 26AS, and Form-16. The Annual Information Statement (AIS) and Form 26AS are usually fully updated by May 31st. Within 15 days, you’ll receive TDS certificates. Therefore, only after the complete update of AIS and Form 26AS and upon receiving TDS certificates, you should file your ITR.

Banks, registrars and other financial institutions are required to provide Specific Financial Transactions (SFT) details to the Income Tax department every year. This information includes financial transactions made by taxpayers during the financial year and is sent to the Income Tax department. It includes details like shares, mutual funds, dividends, savings accounts, FD interest, PPF, credit card bills and more. After SFT filing, these details are updated in the taxpayer’s Annual Information Statement (AIS). The last date for reporting entities like banks and mutual funds to file SFT is May 31, 2024.

During the financial year, TDS is deducted on income such as salary and interest income. For entities responsible for deducting tax like companies and banks, the last date for filing TDS returns for the last quarter (January-March) of FY 2023-24 is also May 31st.

According to income tax laws, TDS is deducted and deposited every month, but TDS returns are filed quarterly. After the company files TDS returns, the tax deposited against your PAN will start reflecting in your Form 26AS. Form 26AS is like a tax passbook, containing details of all TDS and TCS deductions against a PAN.

Within 15 days of filing TDS returns, the deducting entity is required to issue TDS certificates. Therefore, you may receive Form-16 from the company by June 15th. Similarly, if any other entity deducts tax, their TDS/TCS certificate should also be received by June 15th.

Hence, after filing TDS/TCS returns and SFT filing and after updating AIS and Form 26AS, and upon receiving Form-16, you should file your returns.

Do not rush while filing income tax returns because the last date for ITR filing is July 31st. Salaried individuals should wait for the update of Form 26AS, AIS and receipt of Form-16 from the employer. During return filing, cross-check the pre-filled data in the ITR form with Form-16, Form 26AS and AIS to avoid discrepancies, as prevention is better than cure.