This time, taxpayers have got more time to file their income tax returns. Even then, around one crore people have already filed their returns. Many taxpayers believe that after filing the return, their refund will come quickly to their bank account. Although the Income Tax Department has not said anything officially about this, it is believed that filing the return early has many benefits.
Why Filing ITR Early is Helpful
Experts say that one big benefit of filing your income tax return early is faster processing. If there is no mistake in the return, the refund comes to your bank account sooner.
Vibhor Goyal, founder of fintech firm OneBank, said, “If the return is filed correctly by matching the data for May and June, it gets processed in 2 to 4 weeks. But if someone files close to the deadline, the process takes more time.”
Mistakes in Return Can Delay Refund
Goyal also said that early filing alone is not enough. If there is any mistake in the return, then the refund can get delayed.
For example, if Form 26AS shows ₹1,200 as interest income but you don’t mention it in your return, the Income Tax Department may select your return for review. This can delay your refund by 60 to 90 days.
Returns Are Processed in the Order of Filing
Chartered Accountant Shankar Kumar said that the Income Tax Department starts processing after verifying the return. The time taken can be different for each taxpayer. Filing early gives you time to fix any mistake if you get a notice from the department.