ITR Filed? Don’t Relax Yet! What Every Taxpayer Should Do After Filing the Return
For millions of taxpayers, clicking the “Submit Return” button feels like crossing the finish line. In reality, it is only the end of the first lap. Filing the Income-tax Return fulfils one important responsibility, but it also marks the beginning of the Income-tax Department’s processing journey.
Many taxpayers stop tracking their return the moment it is filed. Unfortunately, tax notices, refund delays, defective return intimations and even simple mistakes generally surface only after the return has been submitted. A little follow-up after filing can often save considerable time, money and anxiety later. Many taxpayers treat the Income-tax Return like an examination paper—once submitted, they never wish to see it again! Unfortunately, unlike examinations, tax compliance doesn’t always end when you press the ‘Submit’ button. Here are a few important steps every taxpayer should take after filing the ITR.
1. Don’t Delete the Evidence:
The first thing every taxpayer should do after filing the return is to download and safely preservethe ITR Acknowledgement, the filed return, tax computation, challans and other supporting documents. Documents such as Form 16, Form 16A, Form 26AS, AIS, TIS, capital gain workings, interest certificates and home loan statements should also be retained. Further, contract notes for share transactions, property purchase and sale documents, donation receipts, insurance premium receipts, medical insurance records, foreign asset details and other relevant evidence should also be carefully retained
Many taxpayers assume these records are no longer required once the return is filed. However, they may be needed while responding to notices, applying for loans or visas, or during future assessments and verification proceedings. Good record-keeping today can prevent unnecessary inconvenience tomorrow. The burden of substantiating claims generally rests upon the taxpayer. Proper documentation often becomes the strongest defence in case any clarification is sought at a later stage.
Your mobile phone may lose photos, your laptop may crash and your email inbox may overflow—but your tax records should never disappear.
2. Your Return Is Filed… Now Keep an Eye on It:
Filing the return does not mean it has been accepted by the Income-tax Department. Think of filing the return as submitting your application; processing under section 143(1) is the Department’s response. Every return is processed electronically, and an Intimation under section 143(1) is generally issued after processing.
Taxpayers should regularly check the status of their return on the Income-tax Portal and carefully read the intimation whenever it is received. Sometimes the Department may accept the return as filed, while in other cases certain adjustments may be made because of mismatches in TDS, tax payments, deductions or income reported.
Many taxpayers ignore these communications assuming they are routine acknowledgements. Every communication from the Department deserves careful attention.
Remember, filing the return is an event. Tax compliance is a process.
3. Don’t Ignore SMS & Emails from the Income-tax Department:
Today, the Income-tax Department communicates primarily through electronic means. Important information may reach taxpayers through registered email IDs, mobile numbers or the e-filing portal.
Whether it is a defective return notice, refund communication, outstanding demand, clarification request or any other intimation, ignoring these messages can sometimes prove more expensive than receiving them. It is therefore advisable to periodically log in to the Income-tax Portal and check for any pending actions or communications instead of assuming that “no news is good news.”
4. Monitor Your Refund Status:
Many taxpayers eagerly await their income-tax refund after filing the return. However, merely filing the return does not guarantee immediate receipt of the refund. Taxpayers should ensure that their bank account is correctly pre-validated on the Income-tax Portal and regularly monitor the refund status. Incorrect bank account details, validation issues or certain processing discrepancies may delay the refund. Identifying such issues early helps in obtaining the refund without unnecessary correspondence. Remember, filing the return may take only a day, but the refund depends upon successful processing of the return.
5. Mistakes Can Still Be Corrected:
Even the most careful taxpayer can sometimes discover an omission or error after filing the return. A forgotten bank interest entry, an omitted deduction, an incorrect capital gain computation or a clerical mistake need not necessarily become a permanent problem.
Wherever permitted, taxpayers should take timely corrective action by filing the revised return, instead of waiting for the Department to point out the mistake.
The Income-tax Act recognizes that genuine mistakes can happen and therefore permits taxpayers to correct them.It is always better to admit and rectify your own mistake than to wait for the Department to discover it for you. Early correction not only reduces future complications but also demonstrates responsible tax compliance.
What If You Haven’t Filed Your Return Yet?
If you couldn’t file your return by 31st July, don’t panic—but don’t procrastinate either. Taxpayers having business or professional income, tax audit cases, trusts and certain other specified assessees may have different statutory due dates like August, October or November, depending upon the applicable provisions of the Income-tax Act. Those whose due date has already expired should not assume that all doors have closed. A belated return can still be filed, though subject to the applicable late filing fee and interest. Delay may also affect the ability to carry forward certain losses and may result in avoidable compliance issues.
Similarly, taxpayers whose due dates are still ahead should resist the temptation to postpone filing until the last permissible day. Once the festive season begins, tax compliance often gets postponed in the middle of celebrations, holidays and business commitments. Before you realise it, the last permissible date may be just around the corner. Completing tax formalities early gives you peace of mind and enough time to rectify mistakes, respond to departmental communications and receive refunds without unnecessary stress.
The Tax Talk
A well-filed Income-tax Return deserves proper follow-up. Preserve your records, monitor the processing of your return, keep track of refunds, read every communication from the Income-tax Department and act promptly whenever required.
Remember, filing the return is your responsibility. Ensuring that it is correctly processed is equally your interest. Your job as a taxpayer doesn’t end when you click the “Submit Return” button—it ends only when your return is processed, your refund (if any) is received, and there are no loose ends left to worry about.
A few minutes of follow-up today can save months of correspondence tomorrow.
[Views expressed are the personal views of the author. Readers are advised to seek professional advice before taking any decisions. Readers may forward their feedback & queries at nareshjakhotia@gmail.com. Other articles & response to queries are available at www.theTAXtalk.com]
