Why You Shouldn't Procrastinate on ITR Filing for FY 2024-25
Procrastination is a seemingly inevitable human trait, but when it comes to filing your Income Tax Returns (ITR) for FY 2024-25, delay could cost you. Despite a streamlined process, many taxpayers wait until the last minute, exposing themselves to potential penalties and stress.
The Pitfalls of Delay
Delaying ITR filing results from multiple factors. For one, taxpayers often await updated ITR forms and filing utilities, released shortly after the end of the financial year. Essential documents like Form 16 and Form 16A typically become available mid-June. Filing without these important documents can lead to data mismatches and errors in tax calculations.
Moreover, confusion over default tax regimes and updates to the filing portal deter early submissions. This year, the deadline has been extended to September 15, 2025, encouraging timely filings but not necessarily curing procrastination.
Understanding the Procrastination Mindset
For some, the paperwork’s perceived burden and fear of mistakes cause anxiety. Others operate under the notion that more time is always available, leading to a last-minute rush.
Steps to Avoid Delays
Combatting procrastination involves strategic planning:
- Early Document Collection: Gather salary slips, rent receipts, bank interest proofs, Form 16, and other necessary documents early.
- Set Reminders: Once all documents are in hand, create a schedule to file within one to two weeks.
- Verify Records: Cross-check Form 26AS and AIS data with personal records to prevent errors.
- Choose Tax Regimes Wisely: Compare old and new tax regimes to optimize savings, consulting a Chartered Accountant if necessary.
- Use Reliable Platforms: Protect your filing process with trusted e-filing portals and professional guidance.
Reaping the Benefits of Early Filing
Filing early doesn’t just mitigate late fees—it offers tangible benefits like quicker refunds, sometimes processed within 2–3 weeks, and improved financial planning for peace of mind.
Penalties for Late Filing
Those who file post-September 15, 2025, risk penalties per Section 234F. An income over Rs 5 lakh could incur up to a Rs 5,000 penalty, while those earning under Rs 5 lakh might pay Rs 1,000. Additionally, Section 234A interest applies if taxes remain unpaid.
Belated returns are still viable until December 31, 2025, but expect penalties and refund delays. According to Zee News, early filing is a reliable way to avoid unpleasant surprises.
Take charge of your finances this year by setting reminders, gathering documents, and being proactive in your filings. Start early to minimize stress and maximize your financial returns.
