We've written this for you if you’re sweating at the thought of doing your taxes and prone to leave it to the last date. However, what if it doesn’t need to be a stressful thing? Let’s explore why filing your income tax return early can be beneficial.
If you tackle big projects with tiny steps, this is great news. You can save your progress on the ITR portal and come back to it later. Maybe even a week to finish your taxes before the deadline! It’ll be helpful, especially if you need time to collect documents (remember those deductions) or can spare only a few minutes each day.
Doing it at the last minute means you might run into delays. Certain financial institutions will take more than a day to get back on your requests (investment portfolio, yearly statements). It’s all because you asked for it too late, leading to a missed deadline and the dreaded late fees.
If you’re forgetful, you should do it as soon as possible. You’ll have enough time to get everything in order so you don't have to pay more. Filing early helps avoid these late fees and penalties.
Who doesn’t like money getting deposited in their account? The faster you file your taxes, the faster your refund arrives. When you file your income tax returns early, your refund will take just three to seven weeks to process. You might get your income tax refund before your friends file their taxes. So why wait till the last minute?
Try to recall math exams when you were in school. Remember the horrified gasps after you realised your silly mistakes on a 10-mark question? Now, we get that your income tax involves a lot of calculations. But there are different consequences to making ‘silly mistakes’ on your taxes. And it doesn’t involve calling your parents.
Making errors on your taxes is highly probable when you have multiple sources of income. Not to mention all those deductions you want to take advantage of. It’s even more frustrating when you accidentally underpay taxes because of a few errors - which means subjecting yourself to interest charges/penalties. So take your time with your taxes to rectify errors before submitting.
Don’t forget to check this blog post for tips on filing your income taxes.
This point applies if your income isn’t subjected to TDS and comes from multiple sources. If your tax liability is more than ₹10,000, you can pay it in four instalments. This ‘advance payment’ scheme involves calculating your tax liability ahead of time and paying it in instalments throughout the year.
Filing your taxes early makes this calculation so much easier. So, remember these deadlines for advance tax payments: 15 June, 15 September, 15 December and 15 March. If you’re late on payments or pay less than the required instalment, you'll run into issues. So filing ITR early and keeping track of the deadlines will help. Additionally, it helps ease your tax burden and won’t severely affect your cash flow.
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While we don’t want you to leave it until the day of the deadline, the last date for filing your ITR is 31st July 2023.
It is mandatory for:
i) individuals with a total income of over ₹2.5 lakhs per year (after deductions).
ii) Individuals with income from sources other than salary (capital gains, investments, rental income).
If you are confused or have queries, ensure to ask a professional for advice.
