ITR Refund: Finally the big relief is here for taxpayers. If you haven’t submitted your income tax return yet, it’s advisable to do so promptly. Filing early offers several advantages, although taxpayers have until July 31st to file before facing penalties.
Quick Refund Processing
– Tax specialists report that refunds are being processed swiftly, with funds reaching taxpayers’ accounts in under 24 hours. For instance, one individual e-filed their return on the night of July 27th and received the refund in their bank account the following morning, July 28th. They were pleasantly surprised by the promptness of the refund process.
Over 4 Crore Taxpayers Have Filed Returns
– On July 27th, the Income Tax Department shared on social media that more than 40 million taxpayers have already submitted their returns. The department encouraged taxpayers not to delay filing, revealing that over 2 million returns have been filed daily over the last five days.
Benefits of Early Filing
– Tax experts emphasize the advantages of filing early, as it facilitates quicker refund processing. As the filing deadline nears, there is a surge in the number of returns being filed, leading to increased pressure on the Income Tax Department’s processing system. This results in longer processing times and delays in refund disbursements.
Avoid Waiting for Deadline Extension
– While some taxpayers are hoping for an extension to the filing deadline, the Income Tax Department has not indicated any such possibility. Experts caution against delaying filing in anticipation of an extension, as it might not occur this time. If the deadline remains July 31st, tardy filers will face penalties when submitting their returns.
Meanwhile The deadline for filing your Income Tax Return (ITR) is approaching. Many taxpayers are confused about whether to file their returns themselves or seek the help of a tax expert. The Income Tax Department has made its tax filing portal significantly more tax-friendly, offering taxpayers access to pre-filled data. AI-powered tools are also available. The question is: should you file your returns yourself or consult a tax expert?
Tax experts say that if a taxpayer has multiple sources of income and factors like capital gains, filing their own returns can be challenging. If a salaried taxpayer has only one source of income, they can file their own returns. Taxpayers with profits from derivatives trading, cryptocurrency, foreign assets, or foreign income may face difficulties filing their own returns.
Income tax regulations have different rules for different asset classes. Singla said that if a return filed on the income tax portal contains errors, incomplete disclosures, or the wrong ITR form is used, taxpayers could receive a notice. This means that even a small mistake can lead to significant problems despite paying taxes.