The process of filing Income Tax Returns (ITR) for the financial year 2024-25 has begun and will continue until the deadline of July 31. The Income Tax Department has made all the necessary return filing forms available for e-filing on their website, including ITR-1, ITR-2, ITR-4, and ITR-6. The excel utilities for these forms can be found in the 'downloads' section of the e-filing portal.
In the first month of Assessment Year (AY) 2024-25, the tax department received approximately 6 lakh returns, and nearly two-thirds of these returns have already been processed.
Experts have provided guidance on the ideal timing for filing ITR. Rishab J, Associate Partner at Shivadass & Shivadass Law Chambers, advises individuals to file their ITR by July 31, but the optimal timing depends on their tax liability. For those expecting a refund, filing early is advisable, while those needing to pay taxes should aim to file by July 15 to avoid a last-minute rush.
Ronodeep Dutta, Counsel at AQUILAW, suggests starting the filing process by June 15, as entities complete their TDS reporting by May 31, and employers typically issue Form 16 around that time. Filing early allows for revisions within the statutory due date.
Vinnaayak Mehta, Founder of The Infinity Group, emphasizes the importance of filing ITR at the right time to maximize benefits and avoid penalties. He recommends filing between May 31 and the due date to take advantage of provisions such as set-off and carry forward of losses, along with various applicable rebates. Waiting until after May 31 ensures the inclusion of TDS credits from the fourth quarter, ensuring accuracy and completeness in the filing process.
Overall, timely filing of ITR reflects positively on one's financial profile and helps avoid interest and late fees. With the availability of ITR forms earlier this year, taxpayers have the option to file their returns much earlier than the due date.
