Tax deduction at source
One big difficulty that taxpayers face in filing early returns is related to tax deduction at source. TDS is collected from many sources. These include salary, interest income, dividend, etc. The tax deducted in the last quarter of the year generally appears in the tax records after the filing of TDS return. It has been observed that mostly these details are available in the month of June. Taxpayers cannot file their returns unless they have the TDS certificate details. And by the time it is released, they are stuck and cannot proceed further even if all the other details are ready.
This is one of the most important reasons where people will face problems. In such a situation, the process of return filing takes place only after June. In some cases, especially when it comes to interest accrued, the taxpayer does not know the amount of income accrued and tax deducted until he receives Form 16A from the financial entity. Even in such cases, there is no option other than waiting for the details to arrive.