An extension in the income tax return filing deadline is unlikely, Central Board of Direct Taxes Chairman Ravi Agarwal said on July 26. He also said that the old income tax regime will continue for now and decision on its further continuation will be taken based on the response to the new tax regime and the feedback from taxpayers.
The deadline for filing income tax returns is July 31 for individuals and non-audit cases for the fiscal 2023-24.
“As many as 4.7 crore income tax returns have been filed by July 25 this year, which is about 8 percent to 9 percent higher than what was filed in the same period last year. We received 28 lakh returns on July 25. All this indicates people are filing, it is an upward curve so we will stick to the deadline,” he told Business Today.
When asked about the continuation of the old income tax regime, the CBDT Chief said that the government is encouraging taxpayers to opt for the new income tax regime and has given all benefits to the new regime.
However, Union Finance Minister Nirmala Sitharaman had in the post Budget press conference said that the government cannot comment on a possible phase out of the old tax regime.
A decision on the old income tax regime may be taken by the end of the year depending on the response from taxpayers as well as the feedback, on why some of them still prefer the old tax regime. “We will see if we can build these features in the new tax regime also. Ultimately, the intention is to nudge taxpayers to the new income tax regime,” he said.
The Union Budget 2024-25 has announced a number of tax benefits for the new income tax regime, including a rejig in the slabs as well as a higher standard deduction of Rs 75,000 crore and higher deduction for family pension. These can result in savings on income tax of up to Rs 17,500.
Meanwhile, the CBDT chairman also ruled out any rethink on the long term capital gains tax on real estate under which the long term capital gains tax has been lowered to 12.5 percent from the previous 20 percent but the indexation benefit has been removed and underlined that this would be more beneficial to property buyers.
“We don’t see any reason for a rethink on this,” he said, adding that the entire issue has to be seen in the context of property appreciation and the ultimate tax liability. “Instead of just being guided by some calculations, we have to see the ground reality,” he added.
The CBDT chairman said the way property rates have gone up across properties, the new capital gains tax regime will be beneficial. Further, in a case where a person has sold a property and purchased a new property, then the rolling over benefit is also available, according to him.
He also underlined that property purchases could also become more transparent as people would pay tax at lower rates.
The Income Tax Department has cautioned the Taxpayers regarding the fake news circulation of Income Tax Return (ITR) Due Date Extension. Tax Department via tweeting on its official Twitter handle shared this news.
IT Department wrote, “It has come to our knowledge that a clipping of @sandeshnews is circulating on social media regarding the extension of the date of e-filing of ITR. This is FAKE news. Taxpayers are advised to follow updates from the official website/portal of @IncomeTaxIndia #FactCheck.”
It has come to our knowledge that a clipping of @sandeshnews is circulating on social media regarding extension of date of e-filing of ITR. This is FAKE news.
News that circulating on Social Media Taxpayers could not file their returns as the IT server has gone down several times since the last election. Tax advisors and taxpayers were put in a quandary as July 31, 2024, is the last day for filing returns, due to which the CBDT has extended the deadline for filing returns by a month. Now, the returns can be filed till August 31.
The last date to file the return of Income Tax is 31st July. However, the taxpayers could not file their returns as the server of the IT portal went down in the last resort. Due to this, the taxpayers have to suffer, while lakhs of people from all over the country are filing simultaneously, the server problem is created. Once this kind of problem arises, like every year, the salaried employees should file the return keeping in mind that Form 16 will be received in the month.
Key Points to Note As the tax department cautioned the taxpayers and tax professionals about the fake news of deadline extension. The Tax Department also urged people not to believe in such kind of news from third-party sources until and unless the department doesn’t reveal the extension of the due date news itself. If there will be an extension of the deadline, the department will announce it officially on its official website.
Apart from this, it is mandatory for all taxpayers to file their income tax returns on or before the specified due date, i.e. 31 July. Those who will not file their tax returns, have to bear severe consequences which include penalties and imprisonment to a maximum of 7 years in some cases.
Consequences of Late Submission of Income Tax Returns If the return is submitted after the due date of submission after the due date of submission of return of income, the following consequences will be applicable. These rules are applicable even if a belated return is submitted within the time limit of 31st December 2024 for FY 2023-24.
The assessee will be liable for penal interest under section 234A
It requires the taxpayer to pay interest at 1% for each month or part of a month beginning on the date following the ITR filing due date, which is July 31st.
Late Fees
The assessee shall be liable for late filing fees under section 234F from the assessment year 2018-19 onwards. The section levies late filing fees of Rs. 5,000 (for incomes exceeding Rs. 5 lakhs) and Rs. 1,000 (for incomes less than Rs. 5 lakhs) in case of late filing of ITR.
Carry forward of Loss
If a return of loss is submitted after the due date, a few losses cannot be carried forward.
Also Read Extend Due Date of Filing Income Tax Return for AY 2024-25; Request due to IT Portal Glitches
Non-availability of Income Tax deductions
If a return is submitted belatedly, deduction under the following sections will not be available –
Sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, and 80-IE (up to the assessment year 2017-18); Sections 10A, 10B, 80-IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, 80-IC, 80-ID, 80-IE, 80-JJA, 80-JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB (from the assessment year 2018-19).
Tax Evasion
Non-filing of an ITR can be considered tax evasion by tax officials, and you could risk imprisonment for 6 months to 7 years.
Income Tax Department replies to user seeking ITR filing due date extension
Income Tax Portal Glitches: Govt to extend ITR filing due date to August 31? Income tax portal glitches continue to frustrate taxpayers attempting to pay taxes and file ITR for AY 2024-25, triggering calls from tax professionals and individual taxpayers to extend this ITR filing 2024 deadline to August 31. At present, the last date to file income tax returns is July 31, 2024.
Recently, the Institute of Chartered Accountants of India (ICAI) wrote to the Income Tax Department, bringing to its notice the issues taxpayers are facing in filing of tax returns. Many taxpayers also took to social media complaining that the e-filing site was not working.
One of the users wrote that “site is not working, also resolve issue of rebate in case of capital gain … only few days left and no proper improvement in site and no clarification on rebate.” Another user said: “Today is a good day to extend due date. Portal glitches.”
Income Tax Department replies to user seeking ITR filing due date extension
Replying to this user, the Income Tax (I-T) Department said, “May we request you to share your details (along with PAN & your mobile no.) with us at orm@cpc.incometax.gov.in so that our team can get in touch with you.”
This is a major concern as the problem persists with the tax portal even when less than two weeks are left before the deadline to file income tax returns ends on July 31. Against this backdrop, voices are getting louder to urge the finance ministry and the tax department to give taxpayers one more month to comply with the ITR filing deadline.
Types of glitches taxpayers are facing on income tax portal:
One chartered accountant listed a number of issues in his complaints against the Income Tax Department. Among the issues he mentioned are: Difficulty in accessing form 26AS/AIS/TIS and discrepancy between figures in the statements, limited response options in AIS/TIS, delayed update of responses in TIS, technical flitches on the income-tax e-filing portal, mismatch in pre-filled data, error messages during ITR filing and non-receipt of OTPs for authentication and difficulty in downloading filed ITR Receipts, among others.
The ICAI in its letter said expressed “concerns in relation to Form 26AS/TIS/AIS and in e-filing the ITR Forms”. It informed the department about the matter and said “Section 139(1) of the Act provides for the statutory timeline of 31st July, 2024 for filing of returns of income of for the AN. 2024-25 of individuals, HTJFs, firms who are not subject to tax audit. Many of the taxpayers are facing difficulty in relation to Form 26AS/AIS/TIS due to glitches in the income-tax e filing portal.”
Now, taxpayers as well as tax professionals are hoping that the income tax authorities will pay attention to their calls and extend the ITR filing due date to August 31, at least, in view of continuous problems with the Income Tax Department’s e-filing portal.
Extension of Due date for filing of Income Tax Returns for AY 2024 25
Subject: Representation related to:
(1) Incorrect Interpretation of Relief u/s 87A in case of Assessees having Income chargeable at Special Rate of income tax by utility on the Income Tax Portal as well as by the Helpdesk &
(2) Problems in functioning of Income Tax Portal and update issues in AIS / TIS & Demand for Extension of Due date for filing of Income Tax Returns for AY 2024 25 from 31s July 2024 to 31 August 2024.
Direct Tax committee , ICAI have submitted one more representation to CBDT on various glitches/ non performance/ non availablity of #Incometax portal
Sub: Technical glitches in filing returns and payment of taxes
This in reference to our previous correspondence dated July 5, 2024, regarding concerns related to Form 26AS/TIS/AIS and the e-filing of ITR forms, a copy of which is enclosed as Annexure I.
In this regard, we would like to bring to your notice once again of the technical glitches in filing returns and making payment of taxes. Unavailable service (on account of temporary overloading or under maintenance), failure to make challan payment, error messages appearing while making payment are some of the issues being faced by the taxpayers while filing returns/making payment of taxes.
As the due date under section 139(1) of the Income-tax Act, 1961 for filing of returns of income for the A.Y. 2024-25 for individuals, HUFs, firms who are not subject to tax audit is fast approaching, we request to address and resolve the concerns faced by taxpayers with respect to the technical glitches in the income-tax e-filing portal at the a earliest to enable seamless filing of return and payment of taxes within the due date.
Your prompt attention to this matter will be greatly appreciated.
ITR: The government extended the date for filing income tax returns for companies by one month to November 30.
ITR: The government has extended the deadline for companies to file Income Tax Returns by one month to 30 November. Apart from this, the last date for submitting the audit report for companies that need to get their accounts audited has also been extended by one month to October 31.
The Finance Ministry said in a statement on Monday, the deadline for filing income tax return in Form ITR-7 (ITR-&) for the assessment year 2023-24 has been extended from October 31, 2023 to November 30, 2023.
In the current financial year, till mid-September, net direct tax collection has increased by 23.51% to Rs 8.65 lakh crore. The Finance Ministry said that there has been a huge increase in direct tax collection due to more advance tax payment by the companies. During this period, advance tax payment has increased by 21%.
CBDT extends due date for filing of Form 10B/10BB for FY 2022-23 to 31.10.2023.
Due date for furnishing of ITR in Form ITR-7 for the AY 2023-24 also extended to 30.11.2023.
According to the data, net tax collection has been 47.45% of the budget estimate of Rs 18.23 lakh crore for the current financial year. In the last financial year 2022-23, direct tax collection was Rs 16.61 lakh crore.
The last date for payment of the second installment of advance tax was 15 September. The ministry said in a statement that the net direct tax collection of Rs 8,65,117 crore till September 16 includes corporate income tax (CIT) and securities transaction tax (STT) of Rs 4,16,217 crore and personal income tax (PIT) of Rs 4,47,291 crore. ) is included.
4. Can an Authorized Signatory / Representative Assessee e-Verify the return on my behalf? Yes. The Authorized Signatory / Representative Assessee can e-Verify the return on behalf of the assessee using any of the following methods:
Aadhaar OTP: OTP will be sent to the Authorized Signatory’s / Representative Assessee’s mobile number registered with Aadhaar.
A success message will be displayed along with a Transaction ID
An email will be sent to your email ID registered with the e-Filing portal
In case you are an Authorized Signatory / Representative Assessee:
A success message will be displayed along with a Transaction ID
After successful verification, an email confirmation will be sent to the primary email ID of both Authorized Signatory’s / Representative Assessee’s and your email ID registered with e-Filing portal
Please note vide Notification No. 5/2022 dated 29.07.2022, w.e.f. 01/08/2022 the time-limit for e-verification or submission of ITR-V shall be 30 days from the date of filing the return of income.
8. My demat account / bank account is inactive, can I e-Verify my return with this account? No. You need to have an active demat account / bank account which needs to be pre-validated and EVC-enabled on e-Filing portal to e-Verify your return using your demat account / bank account.
9. Will delay in e-Verification attract any penalty? If you do not verify in time, your return is treated as not filed and it will attract all the consequences of not filing ITR under the Income Tax Act, 1961. However, you may request condonation of delay in verification by giving appropriate reason. Only after submission of such a request, you will be able to e-Verify your return. However, the return will be treated valid only once the condonation request has been approved by the competent Income Tax Authority.
10. What is EVC? An Electronic Verification Code (EVC) is a 10-digit alpha-numeric code which is sent to your mobile number and email ID registered with the e-Filing portal / bank account / demat account (as the case may be) during the process of e-Verification. It has a 72-hour validity from the time of its generation.
11. What to do in case ITR-V is rejected? You can see the reason for rejection on your e-Filing Dashboard. You may send another ITR-V or choose to e-Verify the ITR online.
12. What are the benefits of e-Verification?
You do not need to send a physical copy of your ITR-V to CPC, Bangalore.
Verification of your ITR happens instantly, which saves you from the delay in transit of ITR-V.
You can e-Verify using any of the various methods – Aadhaar OTP / EVC (using pre-validated bank / demat account) / Net Banking / Digital Signature Certificate (DSC).
13. Is it mandatory to e-Verify your return? No. e-Verification is just one method of verifying your filed ITR. You can choose either of the two methods to verify your filed ITR:
e-Verify returns online, or
Send a physical copy of your duly signed ITR-V to CPC, Bangalore.
14. I have filed ITR and sent the physical copy of ITR-V to CPC. However, I received a notification from CPC that they have not received the ITR-V and 120 / 30 days have lapsed since the date of filing. What can I do? You can e-Verify your ITR online after submitting a condonation request.
15. What is the difference between pre-login e-Verification and post-login e-Verification? You can choose to e-Verify your filed ITR before or after logging in to e-Filing portal. The only difference is that while using the pre-login service, you will be required to provide the details of your filed ITR (PAN, Assessment Year and Acknowledgment Number) before e-Verifying the ITR. If you choose to use the post-login service, you will be able to choose the respective record of ITR filed rather than provide any such details before e-Verifying the ITR.
16. Can I e-Verify my ITR using Digital Signature Certificate? Yes. DSC is one of the ways to e-Verify. However, you will be able to e-Verify using Digital Signature Certificate (DSC) immediately after filing your ITR.
The Authenticate Notice / Order issued by ITD service is available to both registered and unregistered users of the e-Filing portal as a pre-login service to verify the authenticity of a Notice, Order, Summons, Letter or any correspondence issued by Income Tax Authorities.
2. Prerequisites to Avail This Service
Access to the e-Filing portal
3.Step-by-Step Guide
Step 1: Go to the e-Filing portal homepage.
Step 2: Click Authenticate Notice / Order issued by ITD.
ITR Verification Time Reduced to 30 Days! Reduction of time limit for verification of Income Tax Return (ITR) from within 120 days to 30 days of transmitting the data of ITR electronically- reg
The Central Board of Direct Taxes (CBDT) vide Circular No. 3/2009 dated May 21, 2009 notified the new Income Tax Return (ITR) forms for Assessment Year 2009-10 and provided the facility of furnishing ITR in the following manner:
iii. Transmitting the data in the return electronically and thereafter submitting the verification of the return in form ITR-V to CPC within 30 days after transmitting the data electronically
iv. Furnishing a bar coded return in paper form.
Further as per clarifications provided in para 9 of the said circular, the date of transmitting the data electronically will be the date of furnishing the return if the form ITR-V is submitted within 30 days after the date of transmitting the data electronically. In case, form ITR-V is submitted after the above-mentioned period, it will be deemed that the return in respect of which the form ITR-V has been filled was never submitted and it shall be incumbent on the assessee to electronically re transmit the data and follow it up by submitting the new form ITR-V within 30 days. Later, the CBDT extended the time-limit for filing ITR-V to 120 days from the date of uploading the return of income. (Press Release dated January 27, 2010).
The CBDT vide Notification no. 02/2012/F.No.142/27/2011-SO (TPL) dated January 04, 2012, notified the Centralised Processing of Returns Scheme, 2011 (CPR Scheme 2011). Rule 14 of CPR Scheme 2011 delegates the power to specify the mode, manner and time for verification of ITR-V.
(ii) Where ITR data is electronically transmitted but e-verified or ITR-V submitted beyond the time-limit of 30 days of transmission of data – in such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow.
Duly verified ITR-V in the prescribed format and in the prescribed manner should be sent by speed post only to
This Notification shall be applicable for electronically transmitted Income-tax return data filed on the e-filing portal (www.incometax.gov.in). This issues by the power conferred to the undersigned under the Rule 14 of Centralized Processing of Returns Scheme 2011 (CPR Scheme 2011) dated January 04, 2012, notified by the CBDT Notification No. 02/2012- F.No. 142/27/2011-SO(TPL).
This notification will come into effect from August 01, 2022.
ITR due date extension: The deadline to file income tax return (ITR) for FY 2022-23 (AY 2023-24) was originally July 31, 2023. If you are wondering whether the income tax department has extended this deadline or not, then the answer is no. The income tax department has not extended the deadline to file ITR.
Here are some reasons why taxpayers were asking for an extension of the tax filing deadline.
First, there have been widespread floods across the country. Many states – Uttarakhand, Himachal Pradesh, Telangana, Maharashtra — are facing flood situations. Previously, the Central Board of Direct Taxes (CBDT) extended the deadline in 2018 due to flood situation in Kerala.
Third, essential TDS certificates, i.e., Form 16 (issued by employer) and Form 16A (issued by the banks, companies, mutual funds) are mandatorily required to be issued by June 15. Due to this, a salaried individual usually gets only 45 days to file his/her income tax return. However, many times banks, employers and other deductors delay in issuing the TDS certificates. This further delays the process of filing ITR for individuals.
It is important to note that the CBDT extended the due date of filing TDS returns of employees and financial institutions by 15 days from May 15 to May 31 in 2017. This delayed the issuance of TDS certificate by 15 days. The government offered more time to deductors to file TDS returns, however, the same extension was not given to the ITR filers.
What should you do now?
If you have missed the ITR filing deadline, then you must worry not. You can still your ITR, albeit by paying a late filing fee of a maximum of Rs 5,000. ITR filed after the expiry of the deadline is called belated ITR. This ITR is filed under section 139(4) of the Income Tax Act, 1961.
The Income Tax Act, 1961, allows taxpayers to file a belated income tax return if they miss the original deadline for filing their returns. The belated return provision is covered under Section 139(4) of the Income Tax Act.
The Government of India (GoI) imposes a tax liability on taxable income of all persons as defined under the Income Tax Act, 1961, who are individuals, Hindu Undivided Families (HUF’s), companies, firms, LLP, association of persons, body of individuals, local authority and any other artificial juridical person.
Income tax return (ITR):
An Income tax return (ITR) is a form used to file information about your income and tax to the Income Tax Department. The tax liability of a taxpayer is calculated based on his or her income. The Income Tax Return (ITR) must be filed every year on or before a specified / due date.
Due Date for AY 2023-24 & Belated ITR:
The deadline for filing Income Tax Returns (ITRs) for the assessment year 2023-24 is July 31st, 2023 and and the same has not been extended by the govt. as of now.
There is no need to worry if you are among taxpayers who have not filed ITR by the due date i.e. on or before 31.07.2023, as the process can be completed by December 31, 2023 by filing Belated ITR.
If the income tax is filed after the due date, it is called a ‘belated return’. However, for this, the taxpayers will need to pay a penalty fee, as fixed in the Finance Act.
Those who were not able to file their returns by the due date, i.e. by 31.07.2023 can still do so but they have to pay penalty fee for late ITR filing. From FY 21 or Assessment Year 2021-22 (AY22), the penalty amount for late filing beyond ITR filing deadline was reduced to Rs 5,000 from Rs 10,000 earlier.
Kindly note that, in case where total income of the Taxpayer is not more than Rs 5 lakh in a financial year, the maximum penalty for the delay is Rs 1000.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
Income tax Return filing on http://www.incometax.gov.in, ITR Due Date AY 2023-24 Latest News Updates on July 31: Today is the due date of ITR filing for taxpayers whose accounts don’t need to be audited.
Income Tax Department scales a new peak!
More than 6.50 crore ITRs have been filed so far (31st July), out of which about 36.91 lakh ITRs have been filed today till 6 pm!
To assist taxpayers for ITR filing, tax payment and other related services, our helpdesk is functioning on 24×7 basis, and we are providing support through calls, live chats, WebEx sessions & social media.
We extend our gratitude to taxpayers and tax professionals for helping us reach this milestone, and urge all those who haven’t filed ITR for AY 2023-24, to file their ITR.
Income Tax Return Filing: There is no point in waiting for the extension of the due date for filing Income Tax Return for AY 2023-24. A record number of taxpayers have already filed their returns for the assessment year 2023-24 (FY 2022-23) and the government has also clarified in recent weeks that it will file returns for those taxpayers before the due date i.e. 31st July. Not considering extension whose accounts are closed or not required to be audited.
This year the last date for filing ITR is 31st July. There are still three days left for the date of 31st July to end. Therefore, taxpayers who have not yet filed their returns should file their returns now. Data from the Income Tax e-filing website shows that so far more than 5 crore ITRs have been filed by taxpayers.
Income tax return: The Income Tax Department tweeted, “We express our gratitude to taxpayers and tax professionals for helping us reach the target of 5 crore Income Tax Returns (ITRs) 3 days earlier this year than last year! More than 5 crore ITRs have been filed for AT 2023-24 till 27 July this year as compared to 30 July last year.
We express our gratitude to the taxpayers & tax professionals for helping us reach the milestone of 5 crore Income Tax Returns (ITRs), 3 days early this year, compared to the preceding year!
Over 5 crore ITRs for AY 2023-24 have already been filed till 27th of July this year as…
ITR: According to the Income Tax Department, ‘out of 5.03 crore ITRs filed till July 27, 2023, around 4.46 crore ITRs have been e-verified i.e. more than 88% of ITRs filed have been e-verified! Out of the e-verified ITRs, over 2.69 crore ITRs have already been processed!’
Reasons For Which You Can Receive an Income Tax Notice: You have already paid your entire tax bill. You have faithfully filed your tax returns. Even so, what should you do if you receive an Income Tax Notice? Do not worry; we will discuss the same in this section.
Let’s see for which reasons you might receive an IT notice-
1) Inaccurate Information on Assets or Income in The Income Tax Return
The Income Tax Department has been taking a series of actions to obstruct as much black money as possible. You might receive a notice requiring you to disclose all your income and asset information inside and outside India.
Additionally, you should carefully complete your income tax return document by entering accurate information such as your name, address, and PAN. You will receive a notification if any of these details are incorrect.
2) Discrepancies in Disclosure of Actual Income & Declared Income
You will receive a notice for non-reportage if the income tax authorities suspect that not all your income from various sources has been reported.
You should gather all your financial documents and proof of all your income sources, such as paycheck stubs, bank statements, invoices, etc., to prevent instances of income non-disclosure when filing your income tax return.
3) Unexpected Alters in Investment Amounts, Elevated Transactions or Income
The tax department will be on a constant lookout in the event of a sudden substantial decrease in income or a steep increase in income levels.
The income tax division may become keen to know and send you a notice if you have acquired real estate, assets, or real estate of a very high value or if your bank account has a lot of high-value transactions. If you place excessive investments in your spouse’s or child’s name, your income will be your own. Therefore, it should be considered when determining your overall taxable income.
You might receive a notice if this income is not reported on your tax returns.
4) Unexpected TDS Inconsistencies When Your TDS Claim Is Incorrect
Your TDS, as of when you filed your ITR, should correspond to the TDS listed on Forms 26AS and 16 or 16A. A notice under Section 143 (1) will be issued if a discrepancy is discovered.
The employer, the bank that holds your fixed deposits, or a bond issuer from whom you have purchased bonds can all deposit TDS. Thus, you will likely receive a notice from the tax department if there are any errors in the TDS deducted and the income and interest you have earned.
5) For Review & Evaluation
You may be served with a notice under Section 143 (2) if the tax authorities have scrutinized the ITR you filedscrutiny can be triggered by discrepancies to incorrect reporting, among other things.
You should also be conscious that the Income Tax Department may penalize you, so respond to the notice as soon as possible.
You must submit your tax return by the deadline for each assessment year. You will get a nudge to file your returns if the ITR filing deadline is approaching and you have not yet.
Under Section 142(1)(i) of the Income Tax Act, which mandates that you furnish the return, notice may be issued. Tax filing and tax payment are two distinct processes. Before; therefore, the tax department may send you an ITR notice if you have only paid the tax and not filed any returns.
You must submit tax returns, even if your business experienced a loss for the fiscal year. Others merely submit their returns online. The process is not over at that point. After uploading the returns, you have 120 days to submit the ITR. A few people submit their tax returns after the deadline. Penalties may result from delays. You may receive a notice from the IT division in such circumstances.
7) Payment of Refunds Against Any Outstanding Debts & Taxes Owed by You
Unintentionally, you may have failed to include some interest income that you have accrued; however, since the interest is credited to your bank account or reinvested in your assets, the department can quickly identify you as the source of the overstatement. You may receive a notice for failure to pay taxes.
The assessing officer might send you a notice informing you that the dues will be subtracted from any refunds you have received for income taxes if you requested one.
8) For Prior Years of Tax Evasion
The Income Tax Act empowers the Internal Revenue Service to re-evaluate prior filed tax returns. The department may issue a notice to the taxpayer under section 147 of the Income Tax Act. Based on predefined criteria, an Assessing Officer can select tax returns for reassessment.
Only when the tax officer seems to have reason to suspect that income accountable to tax has escaped assessment is a notice for reassessment issued.
Income Tax Return: The Income Tax Department may soon take strict action against those who give wrong information about their income in ITR. CBDT chief Nitin Gupta on Monday said that 68,000 cases have been taken up for e-verification by the Income Tax department for under- or under-reporting of income in tax returns for the financial year 2019-20.
Under the E-Verification for Income scheme, the I-T department is informing taxpayers through notices about discrepancies in financial transactions and annual information statements (AIS) filed in I-T returns. Taxpayers can reply to the department giving clarifications or file an updated return if they find that there is a genuine discrepancy in the e-verification notice.
68,000 cases will be verified
Around 68,000 cases relating to the financial year 2019-20 have been selected for e-verification based on the risk management parameters set by the Income Tax Department. CBDT chief Nitin Gupta said that in 56 per cent of these cases or 35,000 cases, the taxpayer has already given a satisfactory reply. More than half have either responded to the notices or filed updated returns.
He said that till date a total of 15 lakh updated returns have been filed and tax of Rs 1,250 crore has been collected. However, no response has been received in 33,000 cases.
Updated returns to be filed by March 31, 2023
Taxpayers have time till March 31, 2023, to file updated returns for income earned in FY 2019-20. Once an assessee files ITR, the chances of his case being taken up for scrutiny or reassessment are slim.
What will happen if the notice is not answered
The CBDT chairman told that if you do not respond to the e-verification notice, there are high chances that an inquiry will be initiated into the matter. He said that taxpayers should check their AIS regularly. If taxpayers see any mismatch entry then they have to inform some IT department immediately.
15 days time
When the department informs the taxpayer about the e-verification by mail, the taxpayer is given 15 days to respond to the intimation from the I-T department. The CBDT has a time period of 90 days to complete a particular case under e-verify, but complex cases may take longer.
Let us tell you that the e-verification scheme was notified on December 13, 2021 and the pilot was launched in September 2022. The last date for filing updated returns for FY 2019-20 ends on March 31, 2023.
Reasons For Which You Can Receive an Income Tax Notice: You have already paid your entire tax bill. You have faithfully filed your tax returns. Even so, what should you do if you receive an Income Tax Notice? Do not worry; we will discuss the same in this section.
Let’s see for which reasons you might receive an IT notice-
1) Inaccurate Information on Assets or Income in The Income Tax Return
The Income Tax Department has been taking a series of actions to obstruct as much black money as possible. You might receive a notice requiring you to disclose all your income and asset information inside and outside India.
Additionally, you should carefully complete your income tax return document by entering accurate information such as your name, address, and PAN. You will receive a notification if any of these details are incorrect.
2) Discrepancies in Disclosure of Actual Income & Declared Income
You will receive a notice for non-reportage if the income tax authorities suspect that not all your income from various sources has been reported.
You should gather all your financial documents and proof of all your income sources, such as paycheck stubs, bank statements, invoices, etc., to prevent instances of income non-disclosure when filing your income tax return.
3) Unexpected Alters in Investment Amounts, Elevated Transactions or Income
The tax department will be on a constant lookout in the event of a sudden substantial decrease in income or a steep increase in income levels.
The income tax division may become keen to know and send you a notice if you have acquired real estate, assets, or real estate of a very high value or if your bank account has a lot of high-value transactions. If you place excessive investments in your spouse’s or child’s name, your income will be your own. Therefore, it should be considered when determining your overall taxable income.
You might receive a notice if this income is not reported on your tax returns.
4) Unexpected TDS Inconsistencies When Your TDS Claim Is Incorrect
Your TDS, as of when you filed your ITR, should correspond to the TDS listed on Forms 26AS and 16 or 16A. A notice under Section 143 (1) will be issued if a discrepancy is discovered.
The employer, the bank that holds your fixed deposits, or a bond issuer from whom you have purchased bonds can all deposit TDS. Thus, you will likely receive a notice from the tax department if there are any errors in the TDS deducted and the income and interest you have earned.
5) For Review & Evaluation
You may be served with a notice under Section 143 (2) if the tax authorities have scrutinized the ITR you filedscrutiny can be triggered by discrepancies to incorrect reporting, among other things.
You should also be conscious that the Income Tax Department may penalize you, so respond to the notice as soon as possible.
You must submit your tax return by the deadline for each assessment year. You will get a nudge to file your returns if the ITR filing deadline is approaching and you have not yet.
Under Section 142(1)(i) of the Income Tax Act, which mandates that you furnish the return, notice may be issued. Tax filing and tax payment are two distinct processes. Before; therefore, the tax department may send you an ITR notice if you have only paid the tax and not filed any returns.
You must submit tax returns, even if your business experienced a loss for the fiscal year. Others merely submit their returns online. The process is not over at that point. After uploading the returns, you have 120 days to submit the ITR. A few people submit their tax returns after the deadline. Penalties may result from delays. You may receive a notice from the IT division in such circumstances.
7) Payment of Refunds Against Any Outstanding Debts & Taxes Owed by You
Unintentionally, you may have failed to include some interest income that you have accrued; however, since the interest is credited to your bank account or reinvested in your assets, the department can quickly identify you as the source of the overstatement. You may receive a notice for failure to pay taxes.
The assessing officer might send you a notice informing you that the dues will be subtracted from any refunds you have received for income taxes if you requested one.
8) For Prior Years of Tax Evasion
The Income Tax Act empowers the Internal Revenue Service to re-evaluate prior filed tax returns. The department may issue a notice to the taxpayer under section 147 of the Income Tax Act. Based on predefined criteria, an Assessing Officer can select tax returns for reassessment.
Only when the tax officer seems to have reason to suspect that income accountable to tax has escaped assessment is a notice for reassessment issued.
Income Tax Return: If you also file Income Tax Return (ITR Filing) every year, then from this time you need to be alert. The Income Tax Department is going to make a big change for the tax payers. The department’s eye will now be specially on those who buy expensive flats, form houses and luxury vehicles. The Income Tax Department has got an inkling that some people who do foreign tours in the country and live a luxury life give less details of their annual income. The department suspects that such people are evading tax.
Notice will be sent on discrepancy in ITR
Now the details of income given by such people and the property purchased (expensive vehicles and flats etc.) will be matched. If anything wrong is found in the ITR declared by these people, notice will be sent to them immediately. Action will be taken on the basis of receipt of reply to the notice from the income tax payer. According to the information given by CBDT, the target of direct tax collection in the current financial year has been kept at Rs 16 lakh crore.
15 to 20 percent increase expected in the target According to the data released by the Income Tax Department, till January 10, the direct tax collection has reached Rs 14.71 lakh crore. After refund, this tax collection is Rs 12.31 lakh crore. Less than one and a half month is left for the financial year, in such a situation the target of direct tax collection is expected to be met. In the financial year 2023-24, the target of direct tax collection is expected to increase by 15 to 20 percent. That is, next time it can increase to 19 to 20 lakh crore rupees.
purpose of preventing tax evasion
The CBDT official said that along with increasing the direct tax collection, it is necessary to stop tax evasion and increase the number of tax payers. On the other hand, it is also a fact that this time the government has made the annual income up to 7 lakhs tax free. In such a situation, there may be a decrease in the number of ITR filers this time. But the aim of the government is that tax payers should show their income correctly. This time, preparations are on from the department to be strict about this.
The government has given a big relief to the taxpayers who have opted for the new tax regime. In the new tax regime, the income tax exemption limit has been increased to Rs 7 lakh, which was earlier Rs 5 lakh. While under the old tax regime, income up to Rs 2.5 lakh was tax free. However, in the old tax regime, there is a provision for Standard Deduction and many exemptions in other items. These benefits were not given in the new tax regime. But this time standard deduction has also been included in the new tax system.
The Finance Ministry has made 5 major announcements regarding personal income tax in the budget 2023-24. These announcements are related to exemption, change in tax structure, extension of standard deduction exemption in the new tax regime, reduction in highest surcharge rate and extension of tax exemption limit on leave encashment on retirement of non-government salaried employees.
First understand what is New Tax Regime
In order to make the process of tax payment simple and easy, the Finance Ministry introduced a new income tax regime during the budget 2020. The system of 2020 was called ‘Simplified Tax Regime’. The new tax regime was brought in keeping in mind those taxpayers who are not in a position to invest and claim deductions. In the new system, more slabs were placed than in the previous one. Under this, the government gave the option of lower tax rates with the option of giving up some tax deductions and tax exemptions.
Taxpayers can take these benefits
A taxpayer can claim up to Rs 50,000 for standard deduction, while every salaried individual with an income of Rs 15.5 lakh or more is entitled to Rs 52,500 as standard deduction. Under the new tax regime, the basic exemption limit has been increased to Rs 3 lakh. There is no exemption on investing in savings schemes in the new tax, but there is no tax on income of Rs 7.5 lakh including standard deduction. Whereas, in the old tax regime, you will have to pay tax only on income above Rs 5 lakh.
Surcharge reduced to 25 percent
With regard to personal income tax, the Finance Ministry has reduced the highest surcharge rate from 37 percent to 25 percent in the new tax regime for income above Rs 2 crore. Due to this, the highest tax rate will come down from the present 42.74 percent to 39 percent. The Finance Ministry has made it clear that taxpayers opting for the old tax regime will not get the benefit of any change in surcharge.
Leave encashment
In Budget 2023, according to the government salaried class, the tax exemption limit has been increased on leave encashment of Rs 25 lakh on retirement of private salaried employees. At present the maximum amount on which exemption can be granted is Rs 3 lakh. In Budget 2023, the Finance Ministry has kept the new tax regime as default.
Individual taxpayers must pay income tax based on the slab system into which they fall. Individuals may fall into a different tax bracket depending on their Income. As a result, persons with higher incomes will have to pay more taxes. The slab system was implemented to keep the country’s tax system equitable. The slabs change with each budget announcement.
New Income Tax Slab for FY 2023-24 (AY 2024-25)
Last updated – 1st Feb, 2023
The following tables show the Revised Income Tax Slabs and not the old tax regime. The table for the new tax regime slabs-
TAX SLAB
RATES
Rs. 0 to 3 Lakhs
NIL
Rs. 3 Lakhs -6 Lakhs
5.00%
Rs. 6 Lakhs – 9 Lakhs
10.00%
Rs. 9 Lakhs -12 Lakhs
15.00%
Rs. 12 Lakhs – 15 Lakhs
20.00%
Rs. 15 Lakhs and more
30.00%
New Income Tax Slabs FY23-24
In India, income tax is calculated using income tax slabs and rates for the applicable financial year (FY) and assessment year (AY). The income tax slab for AY 2024-25 was published as part of the Union Budget 2023-24 on February 1, 2023.
Income Tax Slab
Individual taxpayers must pay income tax based on the slab system into which they fall. Individuals may fall into a different tax bracket depending on their Income. As a result, persons with higher incomes will have to pay more taxes. The slab system was implemented to keep the country’s tax system equitable. The slabs change with each budget announcement.
New Income Tax Slab for FY 2023-24 (AY 2024-25)
Last updated – 1st Feb, 2023
The following tables show the Revised Income Tax Slabs and not the old tax regime. The table for the new tax regime slabs-
Tax Slab
Rates
Rs. 0 to 3 Lakhs
NIL
Rs. 3 Lakhs -6 Lakhs
5.00%
Rs. 6 Lakhs – 9 Lakhs
10.00%
Rs. 9 Lakhs – 12 Lakhs
15.00%
Rs.12 Lakhs – 15 Lakhs
20.00%
Rs. 15 lakhs and more
30.00%
Income Tax Slab for People Between 60 to 80 Years
Tax Slabs
Rates
Rs. 3 lakhs
NIL
Rs. 3 lakhs – Rs. 5 lakhs
5.00%
Rs. 5 lakhs – Rs. 10 lakhs
20.00%
Rs. 10 lakhs and more
30.00%
Note: These rates are yet to updated as per the Latest Budget
Income Tax Slab for People More than 80 Years
Tax Slabs
Rates
Rs. 5 lakhs
NIL
Rs. 5 lakhs – Rs. 10 lakhs
20.00%
Rs, ten lakhs and more
30.00%
Note: These rates are yet to updated as per Latest Budget
Tax Slabs from Domestic Companies
Turnover of the Company
Rates
Rs. 250 crores for the previous years
25%
More than Rs. 250 for the previous year’s turnover
30%
Note: These rates are yet to updated as per Latest Budget
Surcharge
Income Range
2022-23 Rates
2023-24 Rates
Rs.50 lakhs to Rs.1 crore
10%
10%
Rs.1 crore to Rs.2 crore
15.00%
15%
Rs.2 crores to Rs.5 crore
25.00%
25%
Rs.5 crores to Rs.10 crore
37.00%
37%
More than Rs.10 crore
37.00%
37%
Note: These rates are yet to updated as per Latest Budget
Individuals, trusts, businesses, and other entities are all subject to income tax. As a result, there are numerous forms of income that can be taxed in India.
Mentioned below are some of the different types of taxable income in India-
Business Income
Profits earned by businesses are also counted as taxable income. The tax in this category is derived from the presumed or real income that the profession or business may generate. However, it is only done once the permitted deductions have been adjusted.
Different rates apply to individual and corporate business income in the fiscal year 2023-24. Individuals with business income will be taxed in accordance with income tax slabs and rates for the fiscal year 2023-24.
Salary or Pension
Taxes are frequently levied on the base salary, allowances, and salary profit in this category. The income tax slab also applies to an individual’s pension after retirement. The income tax slabs rates for FY 2023-24 differ based on the age of the individual earning a salary or pension during the fiscal year.
Property Income
Owning many houses and renting them out is an easy method to supplement your income. In such circumstances, however, revenue from house renting is recognized as part of the taxpayer’s income. As a result, this income is taxable at the income tax slab rates for the fiscal year 2023-24.
Capital Gains Income
Capital Gains income can be generated by selling assets such as gold, real estate, mutual funds units, stocks, debentures, and so on. It can be characterized as a long-term or short-term capital gain depending on the type of asset and the earnings produced on it over time.
Lottery, Races, and More Income
In India, winnings from lotteries, horse races, and other similar activities are taxable. However, under current tax legislation, these profits are taxed separately rather than as part of the income slab rates for the fiscal year 2023-24.
Distinction Between the Old Regime and the New Regime
In the fiscal year 2020-21, a new tax regime was implemented in addition to the existing old tax regime. Taxpayers in FY 2023-24 (AY 2024-25) have to go with the new tax regime as this was considered the default one from FY23-24. However, individuals can continue with the old income tax regime. The surcharge of the highest rate from 37% was currently reduced to 25% in the new tax regime by the government.
There are two significant distinctions between India’s two income tax regimes:
To begin with, the new tax regime has more tax slabs with lower tax rates than the old tax regime. As a result, the income tax slabs for FY 2023-24 fluctuate depending on whether you choose the new or old tax regime.
Second, all of the important deductions and exemptions available under the previous tax regime, such as Section 80C, Section 80D, and so on, are no longer available if you choose the new tax regime.
Tax deductions and exclusions enable taxpayers to decrease their tax liability by investing, saving, or spending on specified financial instruments.
Though income tax slab rates for AY 2024-25 are lower than under the previous regime, the new tax regime provides very few exemptions or deduction choices. In comparison, the previous tax scheme allowed for up to 70 deductions or exclusions to reduce your taxable income and income tax liability in the fiscal year 2023-24.
New Income Tax Slabs FY23-24 – FAQs
How is a taxpayer’s IncomeIncome classified?
The taxpayer’s IncomeIncome has been classed under five separate income heads under Section 14 of the Income Tax Act, including Salaries from Individuals, Gains in the capital, Profits from a profession or a business, IncomeIncome from home, IncomeIncome from other sources.
Is it essential for me to submit an Income Tax Return if my annual Income is less than Rs.2.5 lakh?
If your yearly Income is less than Rs.2.5 lakh, you do not need to file an ITR, but you need to file a ‘Nil Return’ only for the record as you can use it as proof of employment in many circumstances.
Will my Income as an agriculturist be taxed?
Any money earned by agriculture or related activities will not be taxed. However, it will be taken into account for calculating the tax on any non-agricultural income you may have.
Who is eligible for reimbursement under the Section 87A?
Any resident Indian whose total annual IncomeIncome is less than Rs.5 lakh can claim a rebate under Section 87A. The maximum rebate payable under Section 87A is Rs.12,500.
Individual taxpayers (other than those subject to tax audit), who failed to file their Income Tax Return (ITR) before the due date of July 31, 2022 have the option to file their return of income by December 31, 2022 by paying a fine of up to Rs 5,000 as late fee for filing the ITR late, which would get doubled or up to Rs 10,000, after the end of the year 2022.
Late Fee
“The due date for individual taxpayers (other than those subject to tax audit) for the purpose of furnishing tax returns for Financial Year (FY) 2021-22 (AY 2022-23) was 31st July 2022 as per section 139(1) of the Income Tax Act (IT Act). Where a taxpayer who is required to furnish the return of income, fails to do within such prescribed time limit, he/she shall be liable to late fees Rs 5,000 under section 234F.
Interest of Tax Payable
Apart from the late fee, a taxpayer will also have to pay interest on tax payable, if any, per month.
“In accordance with Section 234A of the IT Act, interest at the rate of 1 per cent per month or part of month would be applicable for the period of delay in return filing on the tax amount outstanding; said Dr. Surana.
Last Date of Filing Return
So, if you are still to file your ITR and can’t do it before December 31, 2022, you have to pay a double fine to file it till March 31, 2023 – the last date of filing return for the Assessment Year (AY) 2022-23 (Financial Year 2021-22).
“Any taxpayer who fails to furnish such return by 31st July 2022 may furnish a belated tax return u/s 139(4) of the IT Act on or before 3 months prior to the end of the relevant assessment year (i.e. on or before December 31, 2022 for returns pertaining to FY 2021-22) or before the completion of assessment, whichever is earlier; said Dr. Surana.
Consequences of Non Filing of ITR
However, if you fail to file your ITR before the end of the Assessment Year – that is March 31, 2023 – you will be in more trouble.
“The revenue authorities have a right to carry out Best Judgement assessment u/s 148 of the IT Act in case any person fails to furnish his return who is otherwise required to furnish return u/s 139 of the IT Act. Further, such defaulting taxpayers would also be subjected to a penalty u/s 270A for upto 50 per cent of such under-reported income. Further, taxpayers who willfully fail to furnish their tax returns u/s 139(1), 142(2)(i), 148, etc. within due time may be subjected to prosecution u/s 276CC of the IT Act. Such prosecution may be for a period of 6 months to 7 years in case the amount of tax evasion exceeds Rs.25 lakh and from 3 months to 2 years in other cases,” said Dr. Surana.
With a 26 per cent increase in tax collection, the government is set to launch the next round of tax administration reforms that are likely to cut down on the number of forms available for filing income tax returns (ITR). This change will bring convenience to tax payers and reduce the time taken for filing returns.
There is a jump in direct and indirect tax collections in 2022 due to clear signs of revival of the economy after the pandemic and government efforts to plug tax leakages. In the coming days, the government may take more strict action against the tax evaders. Also on stricter tax norms for e-commerce and online service providers apart from online gaming.
India is all set to host the leaders of G-20 countries next year. Along with this, taxation in the digital economy, ensuring fair share of taxes to developing countries and taxation of cryptocurrencies will also be on the agenda. Rationalization of long-term capital gains tax structure is also expected to bring about parity in holding periods among similar asset classes. Currently, long-term capital gains on shares held for more than a year are taxed at 10 per cent.
Long-term capital gains tax of 20 per cent is levied on sale of immovable property and unlisted shares held for more than two years and loan instruments and jewelery held for more than three years. Some changes in the new tax regime are expected to happen next year as well, as the government seeks to make the exemption-free tax regime more attractive to individual income tax payers.
The tax authorities are working on creating a common ITR form for most taxpayers. However, for individual taxpayers the forms (ITR-1 and 4) will continue. Taxpayers filing ITR-1 and ITR-4 will have the option to choose whether they want to file their tax returns either the proposed common ITR form or the existing form. At present, there are seven types of ITR forms available for different categories of taxpayers.
Before you get into the New Year festive mode, make sure that all your income tax-related work is finished. December 31, 2022, is the last day to file the belated and revised income tax returns (ITRs) for FY 2021-22 (AY 2022-23).
Under income tax laws, an individual who has missed the last date to file an original income tax return can file a belated ITR. So a person who has not filed the income tax return on or before July 31, 2022, for FY 2021-22 (AY 2022-23) has a chance to file a belated ITR on or before December 31, 2022.
A belated ITR is filed under Section 139(4) of the Income-tax Act, 1961. However, the process of filing it is the same as filing an income tax return before the due date.
While filing a belated ITR, an individual taxpayer needs to ensure two things: Section 139 (4) in the tax return form is selected and the applicable penalty amount, penalty interest and taxes dues are paid.
Under Section 234F of the Income-tax Act, a penalty of Rs 5,000 is levied on an individual filing a
belated ITR. However, small taxpayers with a taxable income of up to Rs 5 lakh have to pay only a penalty of Rs 1,000. This late filing fee must be deposited before you start the process of filing a belated ITR.
Penal interest is applicable if any income tax dues are payable at the time of filing the belated ITR. It is calculated at the rate of 1 per cent per month if self-assessment and advance tax are due while filing.
What is the process of filing revised ITR?
A revised ITR is filed under Section 139(5) of the Income-tax Act. Here also, the process of filing is the same as filing an original ITR.
While filing, an individual taxpayer needs to ensure that Section 139 (5) is selected while filling the applicable income tax return form and the original ITR’s number must be kept handy as it needs to be quoted in the revised ITR form.
Now, what happens if taxpayers miss these deadlines too?
If taxpayers miss the last date to file belated ITRs, they can file updated ITRs. The Finance Act of 2022 has introduced the concept of updated returns to allow a longer duration for an assessee to file the return of income. An updated return can be filed within 24 months from the end of the relevant assessment year (subject to certain conditions). It can be filed even after the expiry of time limits specified for the filing of a belated return or revised return of income.
An updated income tax return can be filed only after the end of the relevant assessment year. Hence, if taxpayers do not file belated ITRs now, then they will be allowed to file an updated ITR from April 1, 2023, only.
A penalty or fee is not levied upon a person who wishes to furnish an updated return. However, they will be required to pay an additional tax in accordance with Section 140B of the Income Tax Act.
A taxpayer will be liable to pay 25 percent additional tax on the tax dues if ITR-U for FY 2021-22 (AY 2022-23) is filed within the first relevant assessment year — i.e., between April 1, 2023, and March 31, 2024. However, if the ITR-U is filed between April 1, 2024, and March 31, 2025, then 50 percent additional tax on the tax dues will have to be given.
A taxpayer must furnish an updated return in those ITR forms which were notified for the respective assessment year for which an updated return is to be furnished. Such an ITR form will be filed along with the newly notified form ITR-U.
Finance Ministry has recently extended the deadline for filing income tax returns (ITR) for the assessment year 2022-23 by businesses till November 7. This is the third extension granted for the filing of tax returns where an audit is required. The original date was September 30, 2022, which was extended to October 7 and further to October 31.
Now, the same has been extended to November 7, 2022.
Why the extension?
In a notification, the Central Board of Direct Taxes, the apex decision-making body in matters of income and corporate tax, said that since it had extended the deadline for filing audit reports last month, the ITR filing due date, too, is extended.
While extending the deadline for the first time from September 30 to October 7, CBDT said that it was done on account of difficulties being faced by the taxpayers and other stakeholders in the filing of various reports of an audit.
What is a tax audit?
concept of tax audit came in the year 1984 in the Indian tax laws. It aims to ascertain the compliance of various provisions of the act and is conducted by a chartered accountant only.
The taxpayers who are subject to income tax audits are required to get their accounts, i.e. balance sheet and profit and loss account, audited by a practising chartered accountant.
Additionally, a proper audit for tax purposes ensures that the books of account and other records are properly maintained by the taxpayer, that they truly reflect the taxpayer’s income and that claims for deduction are made correctly.
What forms are required to do the same? The chartered accountant conducting the tax audit give his/ her findings, observation, etc., in the form of an audit report in Form Nos. 3CA/3CB and 3CD. The form prescribed for the audit report under section 44AB of the act is Form No. 3CB, and the prescribed particulars are to be reported in Form No. 3CD.
Who needs to get their accounts audited?
In the case of a specific business, or if the income or turnover of a taxpayer exceeds stipulated limits, a tax audit is required.
What is the objective of tax audits?
Apart from reporting requirements of Form Nos. 3CA/3CB and 3CD, a proper audit for tax purposes would ensure that the books of account and other records are properly maintained, that they truly reflect the taxpayer’s income and that claims for deduction are correctly made by him/her.
Such an audit would also help in checking fraudulent practices. It can also facilitate the administration of tax laws by a proper presentation of accounts before the tax authorities and considerably save the time of assessing officers in carrying out routine verifications, like checking the correctness of totals and verifying whether purchases and sales are properly vouched for or not.
What is the penalty for not getting the accounts tax audited?
As per section 271B of the act, if any person who is required to comply with section 44AB fails to get his/ her accounts tax audited for any year or years, the assessing officer may impose a penalty. The penalty shall be lower than the following amounts:
(a) 0.5 percent of the total sales, turnover or gross receipts in business, or of the gross receipts in profession, in such year or years.
(b) Rs 1,50,000.
Also, according to section 271B, no penalty shall be imposed if reasonable cause for such failure is proved.
DGIT (S) Notification No 5/2022 issued for Reduction of time limit for verification of ITR from 120 days to 30 days of transmitting the data of ITR electronically. Refer Detailed Notification.
ITR and Audit Reports Due Date Further Extended on 11.01.2022 by CBDT
The Central Board of Direct Taxes (Income Tax Department) vide F. No. 225/49/2021/ITA-II
dated 09.09.2021 {CBDT Circular No.01/2022 dated 11.01.2022}has decided to further extend the due dates for filing of Income Tax Returns (ITR) and various reports of audit for the Assessment Year 2021-22.
CBDT has considered representation w.r.t. difficulties reported by the taxpayers and other stakeholders in filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961(the “Act”).
CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22
Extension Table for AY 2021-22
Sl.
Nature of Extension
Original Due Date
Extended Due Date
1
The due date for furnishing Report of Audit under any provision of the Act for the Previous Year 2020-21 (clause (a) of Explanation 2 to sub-section (1) of section 139)
30.09.2021
15.02.2022
2
furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21
31.10.2021
15.02.2022
3
Return of Income for the Assessment Year 2021-22 – section 139 (1) of the Act
31.10.2021
15.02.2022
4
The due date for furnishing of Return of Income for the Assessment Year 2021-22- section 139 (1) of the Act
30.11.2021
15.03.2022
5
The due date of furnishing of Report of Audit under any provision of the Actfor the Previous Year 2020-21. (clause (aa) of Explanation 2 to sub-section (1) of section 139)
31.10.2021
15.02.2022
Clarification:
1. It is clarified that this extension shall not apply to Explanation 1 tosection 234A of the Act, in cases where the amount of tax on the total income asreduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of thatsection exceeds one lakh rupees.
2. : For the purpose of Clarification 1, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him undersection 140A of the Act within the due date (without extension under CircularNo.9/2021, Circular No.17/2021 and this Circular) provided in that Act, shall be deemed to be the advance tax.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
BCAS jointly have made a Representation Smt. Nirmala Sitharaman for extension of various dues dates of filing Audit Reports and Income Tax Return under income tax Act, 1961 in the backdrop of technical glitches on the IT portal coupled with COVID19 third wave ITR
Date: 08.01.2022
To,
Smt. Nirmala Sitharaman
Hon’ble Union Minister for Finance and Corporate Affairs
Government of India New Delhi 110001.
Respected Madam,
Subject: Extension of various dues dates of filing Audit Reports and Income Tax Returns under Income Tax Act, 1961 in the backdrop of technical glitches on the IT portal coupled with Covid-19 third wave
The Covid-19 third wave has shaken the world again and uprooted normalcy everywhere. Curfews, restrictions on movement and various other restrictive measures are being taken across many states to control this outbreak. Till now, the Governments have been extremely pro-active in taking various measures to control the outbreak of third wave and to help the economy deal with this situation. We sincerely appreciate the efforts by the Governments in this regard.
We are writing to you regarding the problems being faced by taxpayers on the new portal ‘Efiling-2.0’. Even though the functioning of the portal has improved over the past few months and we are grateful that some of the concerns raised earlier have been addressed and resolved, however we regret to inform you that even after the expiry of approximately 4 months since the date (15.09.2021) the portal was expected to have become smoothly functional, taxpayers as on date still continue to face various technical issues while interfacing on the portal.
Further, with the due date for filing the income tax returns and audit reports for A.Y. 2021-22 approaching very close, these technical issues are causing panic and concerns amongst various stakeholders. We have worked closely with multiple stakeholders to understand the issues at hand with respect to new portal ‘Efiling-2.0’. We hereby humbly submit that although statistically the number of income tax returns filed for AY 2021-22 may be in sync with the numbers for earlier years, however the ground reality as far as procedural difficulties are concerned, is far different and far from ideal situation. We therefore wish to highlight the various issues being currently faced by all stakeholders while accessing and interfacing on the new portal ‘Efiling-2.0’ to perform the statutory compliances related to filing of income tax returns and tax audit reports.
1. Login issues
We wish to highlight that the new portal has been working erratically in terms of response speed. It works quite slowly at odd hours and it takes multiple attempts to login into the portal in order to upload returns and audit forms.
2. Last minute updation of versions of utilities
There has been last minute updations of utilities and instructions for e-filing the ITR Forms and Tax Audit Report. For instance, the latest schema of Forms 3CA-3CD and 3CB-3CD was updated at the fag end (on 6th January 2022) of the filing due dates. This leads to unnecessary duplication of work as old Json files are no longer accepted with change in the schema.
Also, many taxpayers / professionals use third party softwares to file the ITRs / audit reports and the software companies also take time to update their respective softwares with the above updation of utilities and thereby resulting in further delay in filing of ITRs / audit reports.
3. Issues in accepting audit forms/reports
In various instances, the portal is not allowing taxpayers to accept the tax audit reports uploaded by the auditor which tantamount to multiple attempts to upload a single audit report.
4. Non availability of ITR acknowledgements
It has been noticed that though the income tax return has been successfully uploaded and e-verified, the ITR acknowledgements are not being generated and are not visible on the portal instantly, causing avoidable concerns.
5. Registration of new assessee
Registration of new assessee is a humongous challenge as registration is not getting accepted for reasons not known. No proper and specific error message is being displayed describing the reason of error, and in case grievances are raised with reference to same, the support team seeks the screen shot of the error message which is causing undue delay in registration process.
6. Registration of Digital Signature Certificates (DSC)
Next major concern is that the digital signatures are not getting registered seamlessly. At times, the portal asks to change the PIN, at times it throws an error of PAN mismatch, sometimes even the server is down.
Even in the case of registered digital signatures, problems are faced while using the DSCs for verification purpose, specifically in the case of Karta / Partner / Directors etc.
7. Issues in getting One-time Passwords (OTPs)
There has been a huge time lag in receiving the OTPs while doing the Aadhar enabled e-verification which leads to multiple attempts for verifying a single ITR. Again, this leads to nothing but duplication of clerical work.
8. ITR – 6
The Companies who have opted for concessional tax u/s 115BAA or 15BAB last year are facing issues while uploading ITR 6 for AY 2021-22. The Portal is not allowing the filing of ITR and is asking for filing of Form 10-IC again which is not required under the law.
9. AIS statement, Form 26AS
It is pertinent to mention that in many cases, there is a lot of mismatch in the information reported in AIS as compared to the actual details and the same reported in Form No.26AS as well. This has resulted an additional burden on the taxpayers to reconcile the differences before filing the ITRs in order to ensure that there would be no further notices, unwarranted adjustments u/s.143(1) and unnecessary hassles post filing of the Income Tax Returns.
10. Charitable Organization
Charitable trusts and other institutions are required to furnish Audit Report in Form 10B. The trusts and auditors are facing hardship since the portal is not allowing uploading the Audit Report in Form No. 10B for reasons not known. Owing to this, there has been huge delay in uploading of ITR 7.
It needs to be appreciated that these audit reports are required to be filed by charitable trusts and other institutions. These trusts are not properly equipped and are neither computer savvy to handle the problems arising out of the portal glitches. The failure to file the audit reports by the due date/s could have serious consequences for these trusts leading to denial of exemptions they are otherwise eligible.
11. Form 3CEB Utility is not released
One cannot file Transfer Pricing Audit Report as Form 3CEB Utility is not released. Secondly the Online filing of form option is not working properly and the format of the form hosted is asking few additional details other than the one notified in the Rules.
Our representation:
1. The technical glitches / errors as pointed out above are fixed expeditiously and appropriate instructions be given to the service providers.
2. Considering all the above difficulties being faced by all stakeholders, it is recommended that the due date for filing of Income tax returns and Tax audit report for all the taxpayers for A.Y. 2021-22 be extended to 31st March, 2022. Consequently, the timelines for filing all the relevant reports and certificates under the Act which fall due and co- inside along with or in connection with the ITR filing due dates may also be extended to 31st March, 2022.
3.The due dates for filing of Form 3CEB and all the associated compliances like filing of Form 3CEAA are deferred to 31st March, 2022. The due date of filing Form 3CEAB which needs to be filed 1 month before the above due date be allowed to be filed on or before 28th February, 2022. Consequently, time limit for filing of Country by Country Reporting (CbCR) may also be extended.
Having regard to the above difficulties faced by all the stakeholders including the tax assessees and the tax professionals, we request you to please take them into consideration and extend the due dates for filing ITRs, Tax audit reports, Transfer pricing audit reports, etc. as suggested above at the earliest.
Request for waiver of Late Fees u/s. 234 F of the Income Tax Act and extension of Date for filing of audit report & audited I T Return for A.Y. 2021-22
Tax Advocates Association Gujarat
To, 1. Hon’ble Smt Nirmala Sitharamanji Union Minister of Finance, Ministry of Finance Govt. of India North Block, NEW DELHI – 110001 Email : fmo@nic.in
2. Shri Tarun Bajajji Hon’ble Revenue Secretary North Block, NEW DELHI – 110 001 E: rsecy@nic.in
3. Shri Jagannath Bidyadhar Mohapatra Chairman, Central Board of Direct Taxes, North Block, NEW DELHI – 110 001 E: chairmancbdt@nic.in
Respected Madam / Sirs,
Subject : Request for waiver of Late Fees u/s. 234 F of the Income Tax Act and extension of Date for filing of audit report & audited I T Return for A.Y. 2021-22
With reference to the above, the Tax Advocates Association Gujarat would like to state that continued rise in Omicron / COVID cases pushed India further towards more curbs to contain the Virus. Due to spike in new cases of Omicron / COVID, the Central Government and various State Governments have announced guidelines and restrictions to contain the Virus. The situation of Omicron / COVID cases were increased in the mid of December-2021 and continuously rising and marching towards third COVID wave. The report and the study projects and forecasts that the cases of COVID will peak in January and February – 2022. Our Hon’ble Prime Minister has also raised concern and reviewing the COVID situation on daily basis. Central Government also urged State Governments to not to take the situation lightly and also directed to take further steps to contain the spread of the Omicron variant of Corona Virus.
In this regard, this is further to state that time limit to file Income Tax return in case of the assessee whose books of account are not required to be audited is expired very recently i.e. 31st December 2021. The taxpayers and businesses were expecting the extension of the due date on account of various reasons. But unfortunately the due date was not extended. The taxpayer and tax professionals have also worked hard for timely compliance of filing of Income Tax returns. Figures of filing of returns also shows discipline compliance on the part of taxpayers and tax professionals.
However, due to the situation of Omicron / Corona Virus and restrictions and advisory issued by various State Governments as a proactive action to contain the virus, still in the case of so many taxpayers filing of Income Tax return is pending.
As per provision of Section 234F of the Income Tax Act, if a person is required to file Income Tax return (ITR Forms) as per provisions of Income Tax Law [Section 139(1)] but does not file it within a prescribed time limit then late fees have to be deposited by the taxpayer while filing his ITR Form. The quantum of fees shall depend upon time of filing the return of the total income.
Late fees u/s. 234F (if ITR is filed after due date)
I. If total income is less than Rs. 5,00,000/- then fees payable shall not exceed Rs. 1000/-.
II. If total income is more than Rs. 5,00,000/-
a. If the return of income is filed till 31st December, the fees payable shall be Rs. 5000/-.
b. If the return of income is filed after 31st December till 31st March, fees payable shall be Rs. 10,000/-.
The intention of the government to introduce such late fees is with a view of effective and timely tax compliances.
Looking to the data of filing return of income declared by the Revenue Secretary in the press conference, it is an evidentiary fact that taxpayers are tax compliant and diligently discharging their statutory obligations of filing of return of income.
Various professionals and trade associations have represented and demanded relaxations in due dates in view of COVID-19 pandemic.
As your honours are aware that in view of surge of COVID cases due to Omicron Virus, the taxpayers and tax professionals have demanded for extension in due dates. In various states of our country advisory and SOPs were issued restricted movement, working hours and various guidelines were issued which include imposition of night curfews and restriction of working of men powers and hours. Due to this reasons, working hours of businesses and offices are restricted which resulted that many taxpayers were unable to upload their returns within due dates.
Under the circumstances and in view of the present situation of Omicron / Corona Virus, your honours are humbly requested and prayed to give relaxation / waiver in late fees for the returns filed on or after 31st December 2021, for F.Y. 2020-21 relevant to A.Y. 2021-22. The present government is having very pragmatic and positive approach and have always shown and announced relaxations in the interest of the taxpayers and looking to the present situation and scenario (economical, financial, social and medical) the relaxation and waiver of late fees on filing of Income Tax returns up to 31st March 2022, is highly solicited. Madam, this is an exceptional situation which is being faced globally, every taxpayer is demanding for waiver of late fees for filing of Income Tax returns. The expectations of the taxpayers and tax professionals are genuine and reasonable and therefore, the Government and Finance Ministry is humbly requested to consider them leniently.
The regular working of businesses got severally impacted due to COVID-19 pandemic. The tax fraternity is always stand with the government and also understand that government need revenue to carryout relief work for the poor and other responsibilities and taxpayer always contribute for the same.
However, the collection of late fees is not the source of revenue for the government and waiver of late fees during these difficult time of COVID-19 and Omicron will give relief to the taxpayer and businesses and will not affect revenue to the government in any aspect. Such relief will push-up every compliances and would significantly benefit to taxpayers.
The taxpayers and tax professionals would like to further request your honours to extend time limit / due date of filing of Income Tax audit report i.e. 15th January 2022, which is fast approaching. In view of Omicron / COVID situation, time limit of filing of Income Tax audit report may kindly be further extended up to 15th February 2022, and filing of returns (audited cases) from 15th February 2022, to 15th March 2022. Again if the time limit and due date is extended, there is no loss of revenue to the government and taxpayer will make better and perfect compliances as far as their audit report and return is concerned.
Your honours is very much aware that utility of audit report was enable in the last week of October-2021, time limit is very short to understand the new utility and make it workable. Moreover, the professional has to wait for proper and effective functionality of utility which was operative only in the month of November-2021.
This delay has resulted in an unnecessary burden of work to the taxpayers and tax professionals. therefore, the further extension of one month for filing the tax audit report for F.Y. 2020-21 relevant to A.Y. 2021-22 from January 15th, 2022, to February 15th, 2022, and filing of return from 15th February 2022, to 15th March 2022, is requested.
Your immediate intervention in the matter is highly solicited. Your prompt announcement of waiver of late fees u/s. 234F of the Income Tax Act and extension of due dates of filing of Audit Report and Income Tax returns as well, will give great relief to the taxpayers and tax professionals in this difficult period of Omicron / Corona Virus.
Thanking You,
Yours Sincerely,
Pratik N Patel President Tax Advocates Association Gujarat
Pankaj L Shah Hon. Secretary Tax Advocates Association Gujarat
C.C. To, Hon’ble Pr. Chief Commissioner of Income Tax, Gujarat Aaykar Bhavan, Income Tax, Navrangpura, Ahmedabad-380009
The last date for filing Income Tax Return i.e. ITR (Income Tax Returns) for the assessment year 2021-22 was 31 December 2021, which has now passed. If you have not filed your ITR till this date, then there is no need to panic. You can still file your ITR.
There is an opportunity to file returns even after missing the deadline for filing ITR for any financial year. You can fill belated ITR for this. However, for this you will also have to pay a penalty. The last date to file belated ITR for the financial year 2020-21 is 31 March 2022.
Will have to pay fine up to 5 thousand
As per the Income Tax rules, late fee is payable under section 234F of the Income Tax Act for non-filing of returns for any year within the stipulated time. This late fee can be up to Rs 5,000. Under the rule, the belated ITR can be filed till March 31, 2022 with a fine of Rs 5,000. If the total income is Rs.5 lakhs. exceeds Rs.1,000 only, the taxpayer will have to pay a fine of ₹1,000 only. However, there will be no late fee for those who fall in the income exemption limit (Rs 2.50 lakh).
What if I made a mistake in filing the return?
Those who have already filed their ITR, but there is any lapse while filing the return, they can file Revised ITR. The last date to file revised or revised income tax return for the financial year 2020-21 is also 31 March 2022. You can also file a revised return for the default in the belated ITR return. But since the deadline for filing both belated and revised tax returns for the financial year 2020-21 is March 31, 2021, the revised returns will not be filed for the last-minute belated returns.
The IT department said on Saturday that around 5.89 crore income tax returns were filed for the financial year 2020-21 on the new e-filing portal till the December 31 deadline. Out of this, more than 46.11 lakh ITRs were filed on the last date or December 31. Earlier, due to the second wave of Corona, the last date for filing returns for the financial year 2020-21 was extended to 30 September 2021. Later it was extended till 31 December 2021 due to complaints of technical glitches in the IT portal.
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