To avoid the last-minute rush, at least some taxpayers have begun completing their income tax returns for assessment year 2024-25, after the Central Board of Direct Taxes (CBDT) activated features for regularly used income tax filings on April 1 of this year.
According to data from the income tax department, as many as 119,000 income tax returns for the fiscal year 2024-25 had been filed by April 10, with 109,000 also confirmed. As many as 2,940 returns for the academic year 24-25 had also been confirmed.
To assist taxpayers in submitting their returns for AY24-25, the CBDT made ITR-1, ITR-2, and ITR-4, which are often used by taxpayers, available on the e-filing portal beginning April 1. Companies can also file their ITRs through ITR-6 beginning April 1.
According to experts, this is the latest in a series of efforts launched by the CBDT to help people comply with their tax returns. It had previously launched efforts such as prefilled tax return forms, expedited processing of tax returns, and speedy refunds, particularly for small taxpayers.
"This will assist taxpayers who do not expect a deduction of tax at source (TDS) in the fourth quarter of FY 2023-24 and are not subject to an audit in filing their forms immediately. Such taxpayers should consider filing their forms right away to receive their tax refund, if any, sooner," said Yogesh Kale, Executive Director, Nangia Andersen India.
However, taxpayers who expect TDS deduction in the last quarter - mainly salaried taxpayers and taxpayers expecting interest income in the last quarter - will have to wait until June 2024 to complete their tax returns, he said.
TDS deposits in the government kitty for the last quarter of FY 2023-24 are due on April 30, 2024, and TDS returns are due on May 31, 2024. Given this, the TDS deducted in the last quarter may not appear on the taxpayers' tax credit statement (Form 26AS) before June 1, 2024. As a result, returns filed before to this may be processed with demands, and taxpayers may be required to file rectification applications or updated returns subsequently.
Kale stated that corporate taxpayers would have to wait for their statutory audit to be completed before proceeding with a tax audit (if applicable). Non-corporate taxpayers who are subject to a tax audit would also have to wait, unless they are able to complete the audit well in advance of the due date, he added.
