This article has been inspired from a piece written by Mohit Bansal’s article 

Income tax return for AY 2016-17 have already been released by the Government and are available at the Income Tax Site. Such step shall provide the taxpayers ample time to file their returns at ease. With the release of the Form, new amendments have also been made in it with new compliance by the taxpayers.

Although the last date of filing ITR is 31st July for individuals, people have already started filing returns from the first week of April itself. If you are a salaried employee then just stop filing your return now or else you may receive a demand notice from the Income Tax Department.

 

You must be wondering why. Why it is not so good idea to file your tax returns that early? This article is mainly to save salaried employees from getting harassed by the twisted and dubious provision framed by Government.

 

For salaried class, Form 16 and 26AS shall be the base to file correct Return for respective years. But mainly salaried individuals use their salary-slips to file their return.

 

Form 16 is a certificate from your employer. It certifies that TDS has been deducted on your salary by the employer. Form 26AS is a consolidated tax statement with respect to FY and includes the following details:

1. Tax deducted at Source (TDS)
2. Tax collected at Source (TCS)
3. Advance Tax/ Self assessment Tax etc. deposited by taxpayers

 

Due date to file the TDS Return for the last quarter (March Quarter) is 15^th May of the next FY. This means for the March 2016 Quarter the due date to file TDS Return is 15^th May 2016. This means that your employer may submit the TDS Return by 15^th May, only after which employees’ 26AS can be generated.

 

In case, you file your return on the basis of your salary slips but the employer while uploading the TDS Return reflects different TDS amount as shown in your salary slips. This means there will be mismatch of TDS amount shown by your employer and you.

 

If we check the statics of the last year then, we find that around 70% of the notice served by the IT Department was u/s 143(1) were because of mismatch of TDS claimed in ITR corresponding to the TDS shown in 26AS.

If you want to be 100% safe from these types of notices then you should wait till your employer does not upload the TDS Return which may be till 15^th May.

 

On one side, Government is motivating the taxpayers to file their ITR at the earliest by releasing the Forms on time. On the other hand, the Government makes such provision wherein if the taxpayers file their return at early stage then they may get harassed by the IT Department through issue of demand notices.

 

With such provisions, Government itself nullifies the step of early filing of Return. Therefore, it shall make such provision with which assessee does not have to face notices for early filing of their ITR.

 

File your return with Taxmantra to avoid notices from IT Department.

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