The Income Tax Return (ITR) filing window in India opens on April 1st every year. Filing your return too early, especially before June 15th, may not be advisable for most taxpayers. There are strategic, practical, and regulatory reasons behind this caution. Below, we outline the key issues that justify waiting until at least mid-June to file your ITR.
- TDS Data is Incomplete Before 15th June
The most critical reason to avoid early filing is incomplete TDS (Tax Deducted at Source) information in Form 26AS and AIS (Annual Information Statement).
Form 26AS and AIS are typically updated with complete TDS/TCS data from employers, banks, mutual funds, etc., only after May 31st, the statutory due date for filing TDS returns for the quarter (Q4). Rule 31A(4)(a) of the Income Tax Rules, 1962, mandates the due date for filing TDS returns (Form 24Q/26Q) for Q4 as 31st May.
By 15th June, the data consolidation is more stable and accurate. Filing before this date increases the risk of missing TDS credits, leading to incorrect tax computation or refund mismatch.
- Pre-Filled ITRs Are Often Incomplete
Based on information from various sources, including TDS returns, bank interest, salary slips, and mutual fund redemptions, the Income Tax Department provides pre-filled ITR forms. However, these pre-filled forms are typically unreliable or incomplete in April and early May. Errors in these forms can lead to incorrect filing, demand notices, or delayed refunds.
Waiting until after 15th June ensures that the employer Form 16 is issued (latest by 15th June). And also, bank interest data is reported by banks. Investments under Section 80C, 80D, etc., are visible in AIS/TIS.
- Salary and Form 16 Issuance Timelines
As per Rule 31(3) of the Income Tax Rules, 1962, employers are required to issue Form 16 (TDS certificate for salary) by 15th June of the financial year. Filing ITR before receiving Form 16 may lead to incomplete reporting of salary details and incorrect deductions. Employees may miss claiming key exemptions under Section 10, standard deductions under Section 16(ia), or professional tax under Section 16(iii).
- Investment Declarations May Not Be Reconciled
If you’ve made tax-saving investments close to the 31st March deadline (e.g., PPF, ELSS, NPS), they may take time to reflect in:
- AIS (Annual Information Statement)
- Form 26AS
- Pre-filled ITR
Income Tax Return (ITR) Filing before this reconciliation is visible increases the risk of denial of deductions or inaccurate refund computation.
- Avoiding Rectification and Revised Return Hassles
Income Tax Return (ITR) Filing too early may increase the risk of errors due to incomplete information. You may need to file a revised return under Section 139(5), which complicates compliance and may delay refunds.
For the majority of salaried, professional, and investment-income taxpayers in India, waiting until after June 15th is a wise move, even if filing an ITR early may appear proactive. Doing so ensures:
- More accurate data,
- Lower chances of errors,
- Timely refunds, and
- Better overall compliance.
Exception: Taxpayers with minimal income sources, such as pensioners or small traders with no TDS or investment income, may consider early filing only after careful data verification.
