Tips to file your ITR well before the last date for ITR filing

Filing your Income Tax Return (ITR) in India is an essential financial responsibility. However, the looming last date for ITR filing often causes unnecessary stress and delays for many taxpayers. Whether you are salaried, self-employed, or a business owner, understanding how to file your ITR well before the deadline can save you from penalties and help you stay compliant with tax laws. This article outlines practical and efficient tips tailored for Indian taxpayers to ensure smooth ITR filing well before the last date for ITR filing. Additionally, we will explore the implications of the new tax regime and how it impacts your tax planning. Read on to learn actionable insights to ease your tax filing process and harness the benefits of early submission.

Understand the last date for ITR filing and its importance

Every year, the Income Tax Department announces the last date for ITR filing to enable smooth collection of tax revenue and processing of returns. For individual taxpayers, the usual deadline is 31st July of the assessment year, for instance, for FY 2022-23, the last date was 31st July 2023. Filing your return after this date leads to late fees under section 234F, with penalties ranging from Rs. 1,000 to Rs. 10,000 depending on when you file your return after the due date.

It is crucial to be aware of this deadline to avoid such fines. Not only does timely filing protect you from penalties, but it also ensures faster processing of refunds if due. Moreover, early filing helps taxpayers organise and reconcile their financial documents efficiently. For those opting for the new tax regime, which offers concessional tax rates but forgoes most deductions, understanding your status early helps in decision-making.

The government also provides extension opportunities, but these should not be relied upon. Relying on extensions often delays refunds and increases the risk of mistakes. Hence, keeping a track of the last date for ITR filing is the first essential step in hassle-free tax compliance.

Prepare all required documents and information in advance

One of the biggest hurdles in filing ITR on time is the last-minute scramble to gather all essential documents. Preparing your documents well in advance is critical to avoid any delays or errors. These documents typically include Form 16 issued by employers, bank statements, interest certificates, investment proofs, rent receipts if applicable for claiming HRA, and details of other taxable income sources.

Those under the new tax regime should particularly assess the impact of not claiming deductions like Section 80C, 80D, or HRA exemption. Careful compilation of income details ensures you maximise benefits under your chosen regime, be it old or new.

It is advisable to maintain an annual folder, physical or digital, containing all these proofs to make future filing hassle-free. If you are self-employed or a freelancer, invoices, bills, and expense proofs must be kept ready. GST returns and profit and loss statements will also be helpful.

If you have income from capital gains, dividends, or other sources, gather the corresponding statements to report accurately. Filling incorrect or incomplete information can lead to notices from the tax department, causing further inconvenience. Therefore, methodical document preparation is a vital step towards filing your ITR well before the last date for ITR filing.

Choose the correct ITR form and tax regime based on your income profile

There are several ITR forms prescribed by the Income Tax Department, and choosing the right one is essential for smooth processing. Individual taxpayers typically use ITR-1 (Sahaj) or ITR-2 depending on their income sources. Salaried individuals with income from salary, one house property, and other sources usually file ITR-1. On the other hand, if you have capital gains or multiple house properties, ITR-2 is appropriate.

With the introduction of the new tax regime in Budget 2020, taxpayers now have the option to calculate tax liability either under the old regime with multiple exemptions and deductions or under a simpler structure with lower tax rates but limited deductions. Making the right choice depends on your income profile and the extent of eligible deductions. For instance, if you have significant investments under Section 80C, health insurance payments, or HRA exemptions, the old regime may be more beneficial.

Before starting your ITR filing, carefully determine your income sources and select the correct form. Using income tax online resources or consulting a tax expert can be helpful. Choosing the right tax regime early on enables better tax planning, improved cash flow management, and potentially enhanced refunds. Filing under the correct form eliminates the chances of rejections or corrections, allowing you to file your return well before the last date for ITR filing.

Leverage official government portals and online tools for accuracy and convenience

Gone are the days of paper-based tax filing. The Income Tax Department of India offers a user-friendly online portal for filing ITR that is accessible 24×7 and helps taxpayers file returns conveniently from home or office. This digital system also reduces errors due to prefilled information such as PAN, Aadhaar, and salary income details.

Using the official Income Tax e-filing portal is advisable, especially to file well before the last date for ITR filing. The portal provides built-in calculators that allow you to compare your tax liability under the new tax regime versus the old tax regime. This feature gives clarity on which regime benefits you more and helps in making an informed choice.

Another advantage of e-filing is instant acknowledgement generation after submission, which serves as proof of filing. Many third-party websites also offer free ITR filing tools, but it is safer and legally advisable to use only the government portal or trusted platforms authorised by the government.

Additionally, using Digital Signature Certificates (DSC) or Aadhaar-based OTP verification simplifies the process. The Income Tax Department frequently updates the portal to streamline the return filing process and reduce verification lags. Taking advantage of these official tools will help expedite your filing process and avoid last-minute rushes.

Plan your taxes and advance payments thoughtfully to avoid last date stress

Efficient tax planning is key to filing your ITR well before the last date for ITR filing. Ensuring that your taxes are paid accurately throughout the year avoids surprises during tax season. Salaried individuals should check if correct Tax Deducted at Source (TDS) amounts are reflected in their Form 26AS, the annual tax credit statement.

If you are self-employed or have non-salary income, paying advance tax in instalments can prevent a large sum payment at the end of the financial year. Advance tax payments are generally due in four instalments during the financial year – June, September, December, and March.

Careful tax planning helps maximise the benefits of the new tax regime, where taxpayers need to rely less on exemptions but stay accurate on income reporting and tax payments. When you make timely advance payments, you reduce the chance of penalties and interest for delayed or insufficient tax payments.

Employers issuing you Form 16 should timely deduct taxes based on your declarations and keep records updated. You may consult a CA or use online calculators to estimate your tax liability correctly and plan investments accordingly, particularly under the old tax regime.

By proactively managing your tax dues, you alleviate year-end pressure, thus allowing you to focus on filing your ITR clearly and on time.

Verify your return and ensure accuracy before submission

Once you have filled in your ITR form, it is imperative to double-check the information before submission. Errors in PAN, Aadhaar, income details, bank account information, or tax calculations can result in processing delays or rejections.

Before filing, cross-verify your Form 16, Form 26AS, and other investment proofs. Check if all TDS credits are accurately reflected and if income from all sources is declared appropriately. In the case of using the new tax regime, ensure you haven’t claimed disallowed deductions, which can trigger scrutiny.

After submitting your return online, do not forget to verify it. This verification can be done electronically using Aadhaar OTP, net banking, or by sending a signed physical ITR-V form to the CPC Bengaluru address within 120 days. Unverified returns are treated as non-filed and can lead to penalties.

Maintaining a printout or PDF of your filed return and acknowledgement number will help in future references and dispute resolution if necessary. Timely and accurate filing combined with proper verification ensures your return is processed smoothly, and any refunds are credited promptly.

Conclusion

Filing your ITR well before the last date for ITR filing is not just a good practice but a necessity in today’s financial environment. It prevents penalties, facilitates quicker refunds, and fosters better financial discipline. By staying informed about the tax deadlines, preparing your documents diligently, selecting the right ITR form and tax regime such as the new tax regime, leveraging official tools, and verifying your return carefully, you set yourself up for a stress-free tax filing experience.

Remember, the last date for ITR filing is a firm deadline. Procrastination can lead to avoidable fees and complications with the Income Tax Department of India. Early filing will also give you peace of mind and more time to address any discrepancies that may arise.

Incorporate the tips shared in this article into your annual financial routine and take timely action every year. This approach will not only keep you compliant but also optimise your tax savings efficiently. Don’t wait for the clock to tick down—start organising your taxes today for smooth and successful filing well before the last date for ITR filing.