The idiom “The sooner the better” is also true for tax return filing. However, we Indians being serious procrastinators, don’t actually believe one bit in it. We enjoy completing things at the last moment without realizing the consequences.
Most of the tax return filers have all the information required for filing their income tax return in the months of May-June itself. But they wait till the last date, i.e., 31st July, braving all the trouble caused due to slow servers and last minute rush.
It is not just the last minute trouble that you avoid by filing your tax return early. There are many other benefits that you get when you file your return well before last date.
- First of all, if you file your return now rather than wait till July, there is a good chance that your tax refund, if any, will get processed sooner.
- Secondly, if you need to pay any additional tax, the sooner you file your return the lower the interest you have to pay on this additional tax. This additional tax (self assessment tax) may arise due to less TDS deducted by your employer on salary income or bank on interest income.
- Thirdly, you get time to consult with a tax expert to claim all such deductions that you might have missed out declaring to your employer or your employer might have missed out while computing your tax and issuing Form 16.
- While you consult with a tax expert for your last year taxes, you also get a chance to discuss tax saving for the current financial year. Isn’t it better to rectify last year’s mistakes at the beginning of the current financial year itself than wasting your hard earned money making the same mistakes again?
All this is possible only if you file your return early.
Though the largest chunk of return filers prefers to file their return on the last date, there is also a huge section who files their return even after that. A word of caution especially for those! Not only do you miss the advantages of filing early as cited above, you also lose out on other important benefits. Those who file their return within due date, can revise their return upto 2 years, in case of any mistake like incorrect or understated income or investment or any other detail in the return. Also, you are allowed to carry forward the losses (if any) to future years. You cannot do any of this if you file your return after last date.