ITR Filing 2025: Why You Shouldn’t Rush to File Your Income Tax Return

As the Income Tax Department gears up to open the ITR filing portal for FY 2024-25, many taxpayers are ready to file their income tax returns (ITRs) at the earliest. However, tax experts strongly advise against this early enthusiasm. Filing your ITR too soon can lead to errors, missed income details, and unnecessary notices from the Income Tax Department.

Here’s why waiting until at least June 15, 2025, before filing your return could save you from trouble.

Why Are Taxpayers Eager to File Early?

Much like reaching the airport hours in advance or trying to exit an aircraft the moment it lands, many Indians adopt the same approach to tax filing. They believe that early filing means peace of mind. But when it comes to taxes, speed can be risky.

What Experts Are Saying

Chartered accountants and tax consultants caution that jumping the gun on filing can lead to incomplete or incorrect filings. This is because various financial details — like salary, interest income, mutual fund transactions, and high-value purchases — are not updated instantly on the tax portal.

“The deadline for banks, employers, and other reporting institutions to submit their data is May 31. It is only after this that your income and tax-related details get updated in the Income Tax Department’s records,” explains a Mumbai-based tax advisor.

Read Also: ITR Filing 2025: 5 Key Changes in ITR Forms for FY 2024-25 (AY 2025-26)

What Should You Wait For?

There are three major documents or data sources that taxpayers must check before filing their ITR:

1. Form 26AS

Form 26AS is your consolidated annual tax statement. It reflects:

• Tax deducted at source (TDS)
• Tax collected at source (TCS)
• Advance tax paid
• Refunds received
• High-value transactions

If you file your ITR before Form 26AS is fully updated, you might miss out on some TDS credits or report incorrect income, leading to tax demand or refund delays.

2. Annual Information Statement (AIS)

AIS provides a more comprehensive view of your financial transactions, including:

• Savings account interest
• Fixed deposit interest
• Stock market investments
• Mutual fund transactions
• Foreign remittances

Sometimes, AIS also includes transactions not shown in 26AS. Any mismatch between AIS and your ITR can trigger a tax notice or audit.

3. Statement of Financial Transactions (SFT)

SFT includes high-value financial transactions such as:

• Credit card bills over ₹10 lakh per annum
• Mutual fund purchases
• Large cash deposits or withdrawals
• Property purchases or sales

This data is reported by banks and financial institutions by May 31. Filing your return before this information is visible could mean you underreport your income, inviting scrutiny.

Ideal Time to File Your ITR

According to tax professionals, the best time to file your income tax return is after June 15, 2025. By this date:

• Employers usually issue Form 16
• Banks and other entities complete TDS/TCS reporting
• AIS, SFT, and 26AS are mostly updated

This gives you a complete financial picture, reducing the chance of missing any income or tax credit.

Risks of Filing ITR Too Early

Here’s what could go wrong if you file before June 15:

• Missing TDS entries: Leads to tax demand or reduced refunds
• Unreported income: Triggers notices or penalties
• Wrong tax calculation: Due to lack of updated Form 16 or interest details
• Delayed refunds: If details don’t match backend records

What Should You Do Instead?

Until mid-June, use this time to:

• Collect all documents: Form 16, interest certificates, rent receipts, capital gains statements, etc.
• Review AIS and Form 26AS regularly for updates
• Cross-check PAN-linked financial transactions
• Consult your CA or tax professional if any data mismatch appears

Conclusion

Early filing of your ITR might give you a false sense of accomplishment, but it often leads to avoidable errors and complications. The best approach is to wait till mid-June, ensure all your financial data is updated, and then file your return with confidence.

Pro Tip:

Set a reminder for June 15, 2025, to begin the actual ITR filing process. Filing with complete and accurate data helps you avoid future headaches, receive refunds faster, and stay on the right side of tax compliance.