This year, the Government live the Income Tax Return Filing forms well before the due date, which need to be uploaded before 31st July for a non Audit Taxpayers like Salary employed, Freelancers, Businessman, etc. But the Tax expert advises not to file your Income Tax Return before June 2022. In this article we’ll discuss it in detail.
Taxpayers are required to declare their Income earned during Financial Year 2021-22 i.e. April-21 to March-22 before 31st July 2022. To Prepare Income tax return one needs to match the details entered in ITR form with the total TDS deducted during the year.
TDS is the with holding amount deducted from the source of your Income. If you are an employer, your employer calculate and deduct the actual amount of Income Tax which you need to pay from the total salary. If you are a freelancer/businessman then your client/vendor may clear your bill after deducting TDS. The amount so deducted are required to be deposited to the Government account and later it needs to be mapped with the PAN no of the deductee. your PAN get the credit of TDS amount in every quarter and for the Last quarter of the year that is Jan-March, Govt gives 2 months time to the deductor till 31st May to file the TDS return.
Taxpayers who desire to file their Income Tax Return within this period i.e. Before June, won’t get the credit of their TDS credit if it is not filed by deductee. Practically it takes few more days after filing of TDS return to get credit under your PAN. For example, If we consider the TDS return for Q4 is filed on 31st May, your 26AS will be updated by first or second week of June.
So it is advisable that first ask for the form 16 from the employer/client/vendor for the full financial year including Q4 and check this with 26QB then ITR Filing process shall be initiated.
Taxpayers who file their Return return without considering this fact, may get the notice of. Moreover, Now a days timely returns are processed very fast, the chances of demand notice will be high if deductor proceed the TDS filing after your ITR submission.
Conclusion:
First of All you need to check whether your TDS has been deducted by the employer/Client, if yes then you should wait until all your deducted TDS amount is reported & reflecting is your 26AS. If the total TDS in 26AS is less than the actual TDS deducted then you should check this with your deductor and wait till it is shown in your 26AS.
