Tax filing is open, but why delaying until 15 June might be wiser
filing ITR before June. This is because tax deducted at source (TDS) reporting exercise by banks and other entities on interest income on fixed deposits and savings accounts finishes by 31 May. Similarly, employers start releasing Form16 of employees in the first week of June.
Also Read: ITR filing: Zerodha's Nithin Kamath suggests this income tax hack to save money “In the case of salaried individuals, all the information related to tax exemptions and deductions claimed and TDS gets captured in the fourth quarter return. The first three quarters only have salary related numbers," said Prakash Hegde, chartered accountant, Acer Tax & Corporate Services. Apart from this, statement of financial transactions (SFT), which captures high-value transactions related to credit cards, buying or selling bonds, shares or mutual funds and cash deposits, among other transactions, aggregating to over ₹10 lakh each also gets finalized by 31 May.
SFT, TDS and TCS data and details related to other incomes takes additional 10-15 days to reflect in Form 26AS and the Annual Information Statement (AIS). Hence, currently, AIS will not be up to date and taxpayers will end up filing ITR with incorrect information later. “In most cases, ITR filed before 15 June will get a mismatch notice from the IT department," said Karan Batra, a Delhi-based chartered accountant.
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