Why you should file your ITR before September 15
What's the story
The deadline for filing income tax returns (ITRs) for FY 2024-25 is September 15. Many are hoping that the Indian government will extend the deadline again. However, experts advise against waiting till the last minute as it can lead to several issues such as interest on self-assessment tax, delayed refunds, and technical glitches due to high portal traffic.
Filing implications
Interest on self-assessment tax, delayed refunds
Sujit Bangar, Founder of Taxbuddy.com, highlighted the implications of last-minute ITR filings. He said that if one files their ITR close to the extended due date, they may have to pay additional interest on any self-assessment tax until it's paid. Also, delayed filing of an ITR results in delayed refunds. This is why early filing is always recommended by experts.
Tax obligations
Advance tax payment must be on time
Taxpayers earning income other than salary (like business income, rent, and capital gains) have to pay advance tax if their liability exceeds ₹10,000. Not paying this on time can attract interest. Deepak Jain, Founder of Tax Manager, explained that under Section 234B of the Income Tax Act, non-payment of advance tax attracts 1% interest per month from April until actual deposit or filing of return.
Filing challenges
Technical glitches due to high portal traffic
Last-minute filers also risk running into technical glitches due to the rush to file returns. Some professionals have already faced issues importing the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) data into third-party software. The I-T department revealed that nearly 4.89 crore ITRs had been filed by September 2, indicating a potential surge in filings as the deadline approaches.
Software issues
Download AIS/TIS reports whenever the link is active
Himank Singla, Partner at SBHS & Associates, warned that the auto-download link in third-party software for AIS/TIS is being changed frequently by the IT department due to heavy load on the portal. This may continue until September 15. He advised taxpayers to download these reports whenever the link is active to avoid any last-minute hassles with their ITR filings.
Consequences
What if September 15 deadline is missed?
If the September 15 deadline is missed, taxpayers can still file a belated return until March 31, 2026. If that too is missed, an updated return might be filed later, subject to conditions. However, late filing has its own consequences such as loss of carry-forward losses for set-off against future income if the return is filed after September 15.