Why ITR Filing Should Not Be Done in April and May

Contents Covered

• TDS data not Updated – 26AS

• AIS/TIS not Updated

• Probabilities of Notices

• June – Ideal month for Income Tax Filings
• Conclusion

As the financial year ends on 31st March, many taxpayers feel an urge to file their Income Tax Returns (ITR) as early as April or May. While this eagerness is commendable, it may not be the wisest decision from a compliance and accuracy standpoint.
In this blog post, we’ll explain why ITR  Filing in April or May is not advisable, and why June is the most ideal time to file.

TDS Data for Q4 is Not Fully Updated (26AS from taxpayer perspective)

Most of the Tax Deducted at Source (TDS) deductions made by employers, banks, and other deductors during the last quarter (January to March) of the financial year are reported only by the end of May. This means, if you file your ITR before May ends, the TDS entries might be incomplete, leading to mismatches between your filed return and the records on the Income Tax Portal.

Such mismatches can delay your refund or even result in unwanted scrutiny from the tax department.

AIS and 26AS May Not Reflect Complete Information

The Annual Information Statement (AIS) and Form 26AS are crucial documents that reflect your income details, TDS deductions, investments, and other high-value transactions reported by various organizations.

• The deadline for organizations to file relevant returns that feed into AIS is 31st May.
• Filing your return before this data is populated can lead to omissions or discrepancies in your return.

Hence, it is practically important to wait until at least the first week of June to ensure all relevant data has been updated on the portal.

Risk of Notices Due to Mismatched Information

If you file your ITR without verifying your details with AIS or Form 26AS, the chances of receiving a notice from the Income Tax Department increase significantly. Even minor mismatches in TDS credits or reported income can trigger a notice.

In fact, in most cases, if there is a deviation between your filed ITR and the AIS data, the possibility of receiving a notice is nearly 100%. Reconciling your return with AIS and 26AS is not just a good practice—it’s a necessity.

The Ideal Time to File ITR – June Onwards

Given the above points, the best time to file your Income Tax Return is from June onwards, when:

• TDS details are fully updated,
• AIS and Form 26AS show complete data,
• You can reconcile your income and tax details accurately.

Filing in June allows you to avoid errors, minimize the risk of notices, and ensure quicker processing of refunds.

Conclusion

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