Do not file income tax returns for AY 2022-23 before June 1, 2022

The Income Tax Department has released Income Tax Return (ITR) forms for FY 2022-23. The Central Board of Direct Taxes (CBDT) issued a circular in this regard, notifying new ITR forms 1 to 6. With this assessees can file IT returns for the AY 2022-23.

It should be noted, however, that the deadline for filing TDS returns is May 31, 2022. Only the 26AS will be updated after that. Employers would not be able to give Form 16A to those who had TDS deducted in Q4 FY22 unless they file a TDS return.

The TDS will also be deducted on interest payable like interest on savings or fixed deposits, interest on an unsecured loan, etc. TDS are also made for various incomes like the dividend earned on shares. All these details will be fully available only after filing the TDS.

Also, it has to be noted that those who have not filed the income tax return (ITR) for FY 2020-21 in time, will have to pay higher TDS, TCS from April 1, 2022, in case of the total TDS, TCS was Rs 50,000 or more in FY 2020-21. This is because the government has amended the law wherein not filing ITR for one year and having TDS exceeding Rs 50,000 in the previous FY will lead to deduction of TDS, TCS at a higher rate in the next financial year. The higher TDS, TCS rate will be applicable on specified sources of income such as interest income from recurring deposits, fixed deposits, dividend income, annuity payments, etc.    

It is therefore suggested that the income tax filing be done only after receiving the complete picture of the TDS deductions made.

One should keep on checking form 26AS as it takes time to get updated after the due date of TDS return filing. So, after logging in at the income tax website, taxpayers are advised to first check the Form 26AS and file one's ITR for AY 2022-23 only when it is updated there.

Also read: Annual Information Statement (AIS) will prevent fake HRA exemption claims