The Income Tax Department has prepared ITR-1 (Sahaj) and ITR-4 (Sugam) forms for online filing of Income Tax Returns (ITR). This news is a relief for millions of taxpayers who wait for their returns every year. However, if your TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) has been deducted, then avoid filing the return in a hurry. Experts advise that such taxpayers should wait a little so that any trouble can be avoided later.
Reasons for not filing returns now
Advisor, Partner, Tax Connect Advisory Services LLP, says, “Even though ITR-1 and ITR-4 are available for return filing right now, it would be better for taxpayers whose TDS (Tax Deduction at Source) or TCS (Tax Collection at Source) has been deducted to wait for now. The main reason for this is that their credit of TDS or TCS will not be visible in Form 26AS right now.”
It is important to ensure that all TDS/TCS credits are reflected correctly in your Form 26AS, as it is proof of the taxes paid by you. If you file your return before the credit appears in Form 26AS, it will not be considered by the Central Processing Center (CPC) when issuing instructions under Section 143(1). This may cause you to lose that credit, and you may have to pay unnecessarily more tax or even get a notice from the Income Tax Department.
How long will you have to wait for the return filing
Vivek Jalan has advised that such taxpayers should wait till June 15, 2025, for return filing, otherwise they may have to lose this credit. By this date, most of the TDS/TCS statements will have been filed and updated in Form 26AS.
Small businesses should also pay attention to these things
According to Jalan, small businesses that want to file ITR-4 (Sugam) need to match it with their GST records. This ensures that there is no discrepancy between the income declared by you and the transactions recorded in GST, thereby avoiding future investigation by the Income Tax Department.
Disclosure of all sources of income
Such taxpayers must disclose all their sources of income. This includes not only income from your business or profession, but also other sources such as interest from the bank, rental income, or any other type of income.
Exempted agricultural income
Agricultural income, which is exempted from income tax, also has to be disclosed. Even though it is not taxed, it is mandatory to report it correctly in ITR.
Reconciliation of documents
The information given in ITR should be complete and match your bank account, Annual Information Statement (AIS), Taxpayer Information Summary (TIS), and Form 26AS. Any mismatch in these documents may result in a notice from the Income Tax Department or a delay in processing your return.
Role of Form 26AS and AIS
Form 26AS is a consolidated statement of all tax credits related to your PAN, including TDS, TCS, Advance Tax, and Self-Assessment Tax. AIS is a more comprehensive statement that includes all your financial transactions reported by various financial entities, such as share transactions, mutual funds, interest income, etc. It is extremely important to check both these documents thoroughly and match the information given in them with your return before filing ITR.
The post Tax Alert: Premature ITR Filing May Lead to Tax Loss or Notices – Wait Till June 15 appeared first on Timesbull.
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