Income Tax Return Filing: Why Relying On Deadline Extension Can Be A Costly Mistake
Taxpayers are being warned that delaying Income Tax Return filing until the deadline can lead to significant financial penalties and unresolved data errors. Relying on potential government extensions often results in technical bottlenecks and missed opportunities to correct discrepancies.
Waiting until the final week of July to access the Income Tax portal frequently leads to the discovery of financial data mismatches between Form 26AS, AIS, and TIS. These discrepancies often require time to reconcile with employers or financial institutions, a process that becomes nearly impossible when rushing against the deadline.
Furthermore, a surge in website traffic during the last days of the filing season can result in technical glitches, slow loading times, and failed payment processing. Taxpayers who fail to submit their returns by the prescribed date face late filing fees under Section 234F and lose the ability to carry forward certain capital losses.
Experts suggest that early filing ensures accuracy and allows for the prompt receipt of tax refunds. By avoiding the last-minute rush, individuals can carefully review their deductions and avoid the interest charges that accrue on unpaid tax liabilities after the deadline expires.
Source: IT Portal and Financial Data Guidelines.
