The Income Tax Department has recently released the ITR forms for the financial year 2024-25 (assessment year 2025-26). However, it is better to hold off on filing ITR until after June 15, 2025. This article explains why this measure can save you a lot of hassle.
One of the main reasons to wait is the timely issuance of TDS (Tax Deducted at Source) certificates. These include Form 16 (for salary income) and Form 16A (for other incomes like interest or dividends). According to Income Tax Rules, these certificates are to be issued by June 15.
For income earned between January and March 2025, the tax deducted (TDS) by your employer or bank will be reported to the tax department by May 31, 2025. This information will then appear in your Form 26AS (your tax passbook) by early June. Following this, you'll receive official TDS certificates (Form 16/16A) by June 15, which, along with your Annual Information Statement (AIS), help auto-fill your ITR, making accurate filing easier.
Beyond TDS, other financial transactions (called Specified Financial Transactions or SFTs) are also reported to the tax authorities. These can include large cash transactions, fixed deposits, credit card payments, etc., reported by banks and other entities. This information is also due by May 31 and takes about 5 to 10 days to reflect in your Annual Information Statement (AIS). The final AIS is expected to be ready by the second week of June.
The initial versions of the online ITR filing software often have technical problems. Waiting a few days gives the system time to stabilise, making for a smoother filing experience.
Filing your ITR before your Form 26AS, Form 16/16A, and AIS are fully updated can lead to reporting incorrect income or TDS details. If you miss any crucial information, you might have to file a revised return later, which can be done by December 31.
Mismatches in your AIS or Form 26AS, or if your TDS is not yet reflected, can lead to tax notices, delayed refunds, or even denial of your legitimate TDS credit. When your return is processed, TDS credit is only given for entries appearing in Form 26AS. If it's not there, your refund could be affected, or you might even face a tax demand.
Read more: ITR Filing 2025: Key Deductions and Exemptions for Senior Citizens Explained
While the law doesn't stop you from filing early, waiting until after June 15 ensures you have all your complete and reconciled tax credit data. This reduces the risk of compliance issues and ensures accuracy. Waiting a few extra days can prevent future complications and safeguard your refunds.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 27, 2025, 12:42 PM IST
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