Experts say to ensure accurate reporting, it is recommended to delay filing the ITR until June 15. Tax deductions from the final quarter must be included in the TDS return by May 31. Employers should issue Form 16/Form 16A by June 15 for correct filing.
Read More:- ITR filing 2024-25: Understanding Form 16, issue date, and importance
It is a time when one thinks about filing their income tax return (ITR). However, as a compliance due date in the Income Tax calendar, 15 June is significant for the previous and current fiscal years. Thus, it becomes imperative to consider your income taxes well before this date for several reasons.
“For the ongoing fiscal year, 15 June is the due date for the first installment of advance tax. Individuals expecting a tax liability in excess of Rs 10,000, after accounting for prepaid taxes such as TDS/ TCS, must pay at least 15% of their total estimated tax liability by this date. Failure to do so can result in levy of interest, under Section 234C of the Income-tax Act, 1961,” said Poorva Prakash, Partner at Deloitte India.
Read More: What should you do if your Form 16 data doesn’t match your ITR prefilled form?
“While salaried individuals may not need to undertake any tax compliance for the current fiscal year before 15 June, it is prudent to plan tax saving investments and draw up an estimate of incomes for the fiscal year before 15 June, to avoid short payment of advance tax. Waiting until the last minute may lead to rushed decisions, potentially missing out on beneficial investment opportunities,” she added.
This way, if you (salaried employee) have complete information regarding your total income for FY 2023-24, you can file the ITR before June 15 as you might not need the TDS Certificates (Form 16, Form 16A).
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However, Aditya Purwar, Subject Matter Expert, SN Dhawan and CO LLP says, “It’s advisable to wait at least until June 15 to file the ITR since tax deductions made during the last quarter of the financial year need to be reported in the TDS return by May 31 and the deductor must issue Form 16 (for salaried individuals) or Form 16A (for others) by June 15. These forms serve as documentary evidence that the tax deducted from the income has been deposited with the government. Filing ITR before June could lead to incorrect declaration in case the deductor has not filed the TDS return timely and accurately.”
Additionally, there are other documents that are required like details of interest earned on FDs/RDs and dividend income for filing the ITR. Banks and mutual fund companies compile these details and report them in the Quarter 4 TDS return to be filed by May 31. Furthermore, high-value transactions such as credit card expenditures, and buying or selling of bonds, immovable property, shares, or mutual funds are reported by banks and other institutions by May 31 in the Statement of Financial Transactions (SFT).”
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“For the previous fiscal year, 15 June is also the due date for the issuance of Form 16 by employers and Form 16A by other deductors for the fourth quarter. These Forms detail out the TDS on salary and non-salary payments, respectively. Various e-TDS returns (such as Forms 24Q, 26Q, and 27Q) are filed by 31st of May, with Form 26AS updated within a fortnight. By 15 June, individuals typically have access to all necessary TDS certificates and updated Form 26AS, allowing for accurate tax return filing,” said Prakash.
However, individuals can still take pre-emptive steps to minimise interest under Section 234B by drawing up an estimated tax calculation for the previous fiscal year and depositing estimated self-assessment tax in April or May.
In summary, planning ahead for filing ITR, which is before 15 June, ensures you are compliant with advance tax requirements, strategic tax-saving investments, and other interest liabilities.
