Filing your Income Tax Return (ITR) early may seem like a proactive step, but tax experts consistently advise waiting until after June 15 each year. Here’s a detailed look at why patience pays off when it comes to ITR filing in India.

1. Complete and Accurate Tax Data Becomes Available Only After June 15

• TDS Returns and Certificates:
The last quarter’s Tax Deducted at Source (TDS) returns are due from deductors (like employers, banks, companies, etc.) by May 31. It typically takes 3–4 days for these details to reflect in your Form 26AS, which summarises all your income and TDS for the year. Importantly, Form 16 (for salaried individuals) and Form 16A (for other incomes) must be issued by June 15. Filing before these are available can mean missing or incorrect reporting of income and TDS in your Income Tax Return.

• Annual Information Statement (AIS) and SFT Updates:
Your AIS, which includes details of high-value transactions (such as mutual fund investments and property sales), is generally updated by mid-June. Filing before this date may result in the omission of critical income or transaction details, which can lead to mismatched returns.

2. Risk of Errors and Mismatches

• Incorrect or Incomplete Reporting:
Filing before all TDS and income details have been updated raises the possibility of underreporting income, missing TDS credits, or overlooking high-value transactions. This can result in tax notices, scrutiny assessments, or the denial of valid refunds.

• Technical Glitches in Early ITR Utilities:
Online ITR filing utilities and software are frequently updated or stabilised after their first release. Early filers may encounter technical issues or calculation errors, which can compromise the accuracy of their returns.

3. Administrative and Compliance Complications

• Delayed Refunds or Tax Demands:
If TDS credits are not reflected in Form 26AS at the time of filing, the Centralised Processing Centre (CPC) may deny them, leading to either delayed refunds or even a demand for additional tax. While you can file a revised return later, this adds unnecessary complexity and delays.

• Requirement to File Revised Returns:
Any omission or mismatch due to incomplete data means you’ll need to file a revised return once all information is available. This process, while permitted, is best avoided by waiting until all documentation is in place.

4. Statutory and Practical Timelines

• Legal Deadlines for Issuance of Forms:
According to the Income Tax Act, deductors must issue Form 16/16A by June 15. Banks, mutual funds, and other financial institutions must also report interest, dividends, and capital gains to the IT Department by this deadline. Filing before the information is updated in 26AS and AIS may lead to inconsistencies in the ITR.

• Advance Tax Considerations:
June 15 is also the due date for the first instalment of advance tax for the current financial year. While this is a separate compliance requirement, it underscores the importance of having a complete picture of your tax situation before mid-June.

Unless you have an urgent need (such as for a loan or visa application), waiting until after June 15 is the prudent choice. This ensures all your income, TDS, and high-value transactions are correctly reported, minimising the risk of errors, notices, and administrative hassles.

Filing your Income Tax Return after June 15 ensures you have all necessary documents—Form 16, Form 16A, Form 26AS, and AIS—fully updated and accurate. This minimises errors, prevents compliance issues, and ensures you receive your rightful refunds without unnecessary delays or demands. In tax matters, a little patience goes a long way toward a hassle-free experience.