Nearly 6 lakh IT returns filed within one month of portal’s opening on April 1

The Income Tax Department has received nearly 6 lakhs returns in the first month of Assessment Year 2024-25 (FY25).  Importantly, over two-thirds of the verified returns have been processed.

As on April 29, over 5.92 lakhs returns were filed, of which over 5.38 lakhs have been verified and 3.67 lakh of the verified returns have been processed. In a first, the department has enabled an e-filing portal for taxpayers to file their returns in the new financial year. “This is a giant step towards ease of compliance and seamless taxpayer services,” the department said.

Experts believe early filing helps taxpayers get early refunds, besides giving them more time to revise or correct returns without any penalty. However, they advise salaried persons to wait for some time. The last date for individuals and entities (whose accounts need not be audited) to file their returns is July 31.

• Also read: Number of crorepati income-tax return filers has doubled over the last five years

Suresh Surana, Founder, RSM India, says the department prioritises refunds based on the order of filing. So, submitting return of income early improves one’s chances for early processing of returns and receipt of refunds. Second, by completing their return of income in advance, taxpayers can avoid the rush and potential errors that may occur when they are pressed for time.

“Third, early filing gives taxpayers ample time to review the return and correct any mistakes or omissions before the due date by filing revised returns. This may avoid penalties or additional scrutiny later,” he said. Also, submitting ITR before the deadline specified mitigates the burden of any penalties or interest.

Itesh Dodhi, Director with Nangia Andersen India says, filing ITR early would be a wise strategy for those who have a substantial TDS (Tax Deducted at Source) and do not expect any additional TDS in the last quarter of FY 24.  The deadline to submit TDS returns for the last quarter – covering January to March 2024 – is May 31, 2024 and accordingly form 26AS is updated.

• Also read: CBDT notifies ITR-1, ITR-4 forms for AY 2024-25

If a tax return includes TDS claims that are not reflected in Form 26AS, and the tax return is processed before Form 26AS is updated, it could result in unexpected tax demands. Therefore, “if taxpayers anticipate TDS in the final quarter, it’s advisable to wait for Form 26AS to be updated with TDS before filing the tax returns,” he said.

However, according to Dodhi, there is a silver lining. If a taxpayer notices that his or her Form 26AS has been updated after processing the tax return, he or she can request re-processing of the return. Additionally, taxpayers have the flexibility to revise their tax returns. Should errors or discrepancies arise, taxpayers have until December 31, 2024, to make corrections through a revised return without any penalties.

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