ITR Filing Deadline Nears: Your Last-Minute Checklist Before September 15
With the September 15 deadline for filing Income Tax Returns (ITR) for the financial year 2024-25 (Assessment Year 2025-26) fast approaching, taxpayers have a critical, and now limited, window to ensure compliance. The usual July 31st deadline was extended, but experts advise against waiting until the final day to file. The Income Tax portal often faces heavy traffic near the due date, which can lead to technical issues and failed submissions.
To avoid penalties, interest charges, and the risk of higher scrutiny, here are the essential steps you must prioritize in this final week, as advised by tax professionals like CA Shefali Mundra:
1. Reconcile Your Tax Data:
- Double-check TDS/TCS: Your first step is to match the tax deducted at source (TDS) and tax collected at source (TCS) entries with the data in your Form 26AS.
- Verify AIS and Form 26AS: Cross-check your income and tax credits reported in the Annual Information Statement (AIS) and Form 26AS with your own records. This is crucial for accurate reporting of all income sources and claiming the correct tax credits.
2. Choose the Correct ITR Form:
- Filing with the wrong form can result in your return being rejected or processed with significant delays. Ensure you select the appropriate form based on your income sources (e.g., ITR-1 for salaried individuals, ITR-2 for those with capital gains, etc.).
3. Accurately Report Income and Deductions:
- Make sure you have correctly claimed all eligible deductions under sections like 80C, 80D, and 80G. These can significantly reduce your tax liability.
- Review all sources of income, including salary, interest from savings accounts, and capital gains, to ensure nothing is missed.
4. E-Verify Your Return Immediately:
- After you file your ITR, the process is not complete until it is e-verified. Your return is not considered valid until this step is done. The easiest way to do this is with an Aadhaar-based OTP. E-verification must be completed within 30 days of filing.
5. Understand the Consequences of Late Filing:
- Filing after the deadline can lead to a penalty of up to ₹5,000, or a reduced penalty of ₹1,000 if your total income is below ₹5 lakh.
- In addition to the penalty, you may be liable to pay interest on any unpaid tax dues.
- Late filing can also delay any potential tax refunds you are due.
- Furthermore, you will not be able to carry forward certain losses (such as from business or capital gains) to future years.
Filing on time gives you peace of mind and the opportunity to correct any errors. Don’t wait for the last moment; act now to ensure a smooth and penalty-free tax season.