The Income-tax Department has already made filing functionalities for commonly used segments of ITR available.
ITR Filing FY 2023-24: With the Income-tax Department opening its return filing utilities on the first day of the Assessment Year 2024-25 (Financial Year 2023-24), taxpayers are presented with an opportunity to file their Income Tax Returns early. However, experts advise against rushing to file immediately due to important considerations.
Last year, despite early notifications, Income tax return filing functionalities on the IT portal were available only in May (for Assessment Year 2023-24 or Financial Year 2022-23).
For this year, the Income-tax Department, operating under the Central Board of Direct Taxes (CBDT), has made filing functionalities for commonly used segments such as ITR-1, ITR-2, and ITR-4 available. Taxpayers can file their returns at https://eportal.incometax.gov.in/iec/foservices/#/login
“The ITR functionalities i.e. ITR-1, ITR-2, and ITR-4, commonly used by taxpayers, are available on the e-filing portal from 1st April, 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their Income tax returns through ITR-6 from April 1 onwards,” the Department stated.
As of April 3, a total of 22,599 returns have been filed for AY 2024-25, with 20,868 returns verified. However, tax experts caution against immediate filing due to certain factors.
Annual Information Statement (AIS) and Form 26AS, critical documents for accurate filing, are not updated until March 31, 2024, the end of the previous financial year. Experts suggest waiting for these documents to be generated to avoid discrepancies in filings later.
What are the AIS and Form 26AS, and why do they matter?
The Annual Information Statement, summarized in Form 26AS, provides a comprehensive overview of a taxpayer’s financial transactions. It includes details of Tax Deducted or Collected at Source (TDS/TCS), along with information on interest, dividends, and stock market and mutual fund transactions.
During the income tax return filing process, taxpayers can review the detailed summary through AIS and Form 26AS, confirming its accuracy or providing feedback if discrepancies are found.
However, these documents are subject to delays as they rely on updates from reporting entities such as banks and financial institutions. Form 26AS, specifically, is updated after the income tax department processes the TDS returns.
Due to the last date for filing TDS returns for the January-March quarter being May 31, the updated information is typically available in the first week of June. Tax experts emphasize the importance of verifying AIS/Form 26AS before filing to avoid errors and potential notices for incorrect income reporting.
In conclusion, while the option to file ITRs early is available, taxpayers are advised to exercise caution and wait for the necessary documents to ensure accurate and error-free filings.
Also Read: Commonly used Income Tax Return Functionalities enabled by CBDT on 1st April, 2024
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