Income Tax returns: File early to get faster refund

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Updated: June 23, 2016 1:28:38 PM

The income tax deadline is fast approaching and you keep getting messages reminding you about July 31, 2016 - the last day for filing returns.

income tax returnsThe income tax deadline is fast approaching and you keep getting messages reminding you about July 31, 2016 – the last day for filing returns. (Photo: Reuters)

The income tax deadline is fast approaching and you keep getting messages reminding you about July 31, 2016 – the last day for filing returns. But you keep postponing filing the returns, due to other preoccupations or because of simple lethargy. This may often lead to skipping the deadline. The initial deadline for filing your tax returns is generally July 31.

“It is not adivsable to keep postponing the tax-return filing exercise to the last day as events during that time might force you to miss the deadline There are advantages of being early,” says Sudhir Kaushik, Co-founder and CFO, TaxSpanner.com.

Among the benefits of early tax filing are that you will get your refunds faster. ‘Being an early bird in tax filing helps you to get your refunds faster,” says Kaushik. Once the rush builds up, the tax department takes a longer time to process the returns.

Kaushik says that being early also results in perventing paying of interest on self-assessment tax which you will have to do if you skip the deadline.

Last but not the least, you get time to consult your tax advisor to claim all deductions which you might miss in case you are in a rush to meet the deadline. “If you start the tax return filing process early, you will get time to talk to your tax consultant to claim deductions that your employer might have missed out,” Kaushik said.

Kaushik says that while pushing yourself for filing your tax returns you should be ready with the necessary documents that are need to fill in the forms. Among these are your Form 16 from all employers, Form 16A (for bank interest), Form 26AS (for verification with income tax department’s database, relevant bank statements, investment proofs not submitted to employer and share and mutual funds transaction statement.

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