The e-filing income tax portal has now made the online income tax return (ITR) filing process for FY 2023-24 (AY 2024-25) available. This includes releasing the utilities of commonly used income tax return forms on April 1, aiming to facilitate an early and convenient filing of tax returns.
Salaried individuals should hold off on filing their tax returns until June 15, even though the income tax return (ITR) forms are already available. This is because the AIS and Form 26AS contain important tax-related information and are typically fully updated only by May 31. Salaried individuals also receive their TDS certificates within 15 days of this date. While some data may appear in Annual Information Statements (AIS) and Form 26AS earlier, the most complete information for the last quarter of the previous financial year is typically available by May 31st.
Penalties may apply for filing tax returns with missing information if the missing information causes income to be underreported. As a result, it could be wise to hold off on submitting until June 15 to make sure all relevant data is available.
The deadline for salaried individuals to file income tax returns for the fiscal year 2023-24 (assessment year 2024-25) is July 31, 2024.
AIS and Form 26AS are Typically Not Fully Updated Until May 31
Every year, banks and other financial institutions are required to provide the income tax department with a Statement of Financial Transactions (SFT). The SFTs include information on the different financial transactions that taxpayers made during the fiscal year. These transactions include interest income from fixed deposit accounts and savings bank accounts, credit card payments, and other sources of income. The Annual Information Statement (AIS) is available to taxpayers after these institutions have submitted their SFTs.
The Annual Information Statement (AIS) compiles comprehensive data on an individual’s financial transactions, including details on salary income, tax deductions, and deposited amounts. Additionally, it captures interest earned from savings bank accounts, which is not subject to tax deductions.
The deadline to file a TDS return for the last quarter of a fiscal year, with tax deducted at source (TDS) on incomes, is May 31. This filing obligation falls on the tax deductor, which includes companies, banks, and other entities responsible for deducting taxes at the source.
According to income tax regulations, taxes are withheld and remitted monthly, while TDS returns are filed quarterly
The tax amount deposited against the applicable PAN will be shown in Form 26AS following the submission of a TDS return. As a tax passbook, Form 26AS offers a thorough overview of all taxes withheld or collected for a certain PAN. Furthermore, Form 26AS will show any TCS deductions associated with overseas travel or remittances.
It emphasizes the importance of timely TDS/TCS filing for the final fiscal quarter (January-March). The deadline to submit these forms is May 31st. This is crucial because banks and other institutions also need to file their Statement of Financial Transactions (SFT) by May 31st to update the data in the Annual Information Statement (AIS). Until both TDS/TCS returns and SFTs are filed, the information accessible through Form 26AS and AIS on the income tax portal may be incomplete.
Someone may receive an income tax notice if they file an income tax return using incomplete information from AIS and underreport their income as a result of the incomplete information.
As the ITR filing deadline approaches, consider using Gen income tax return software to simplify and expedite the process. Start by updating the software to the latest version to ensure compliance with current tax regulations. Gather all necessary documents, such as Form 16, TDS certificates, and financial statements. Input your details and income information into the software, which will guide you through each section of the ITR form. After accurately entering and verifying all information, use the Gen IT software to generate and submit your return directly, ensuring a smooth and hassle-free filing experience before the deadline.
Certifications for TDS (Form 16, 16A) Usually Not Available Prior to June 15
Following the submission of a TDS/TCS return, the deductor is required by income tax regulations to furnish a TDS/TCS certificate. After the TDS return is filed, the TDS certificates ought to be sent out within 15 days. As a result, by June 15th, your employer must provide Form 16 (the TDS certificate). Furthermore, by March 31, 2024, banks and businesses that withheld taxes during the fiscal year 2023–2024 must provide Form 16A (TDS certificates) to individuals. TDS returns and certificates are normally issued by this date, though they can be handled before the deadline.
It’s important for a taxpayer to verify that the amount of tax deducted, as indicated in Form 16/Form 16A, aligns with the information in the Annual Information Statement (AIS) and Form 26AS. Any discrepancies could lead to complications for the taxpayer.
An expert stressed how important it is to make sure that the information on a person’s income tax return matches the data that the income tax department has access to via their AIS/Form 26AS. The tax department may send tax notices if there are any discrepancies in this data. To avoid any possible inconsistencies, the tax credit must match the information shown on Form 26AS/AIS.
Certainly! Form 16, your TDS certificate, streamlines tax filing for salaried individuals. This two-part document details your taxes deducted (Part A) and total salary income with corresponding deductions (Part B). Form 16 also clarifies any deductions claimed under the old or new tax regime.
Implications of Inaccurate Income Reporting in the ITR
If the assessing officer finds misreported or underreported income, you may face a penalty of 50% to 200% of the tax owed on that amount (Section 270A, Income Tax Act, 1961).
A person will be penalised 200% of the tax owed on the misreported income if they declare their income to be lower than it is as a result of misreporting. However, 50% of the tax owed on the underreported income will be penalised if the income is underreported for any other reason, such as failing to submit income on the Income Tax Return (ITR).
Read Also: Missing TDS Details in Form 26AS? Check How to Claim It
Ensuring Accurate Income Reporting in ITR is Crucial
By December 31, 2024, an individual has the opportunity to file a revised income tax return (ITR) if they discover that their original ITR contained inaccurate income information.
It’s usually advisable to provide complete and correct information about your income when filing your initial ITR.
You have the option to file your Income Tax Return (ITR) before June 15 if no Tax Deducted at Source (TDS) has been deducted from your income, no Tax Collected at Source (TCS) has been collected from you, and you have all the necessary information about the total income you earned from various sources during the Financial Year 2023-24 (Assessment Year 2024-25).
