Tag: ITR Alert

ITR Filing: New Online Feature for Income Tax Rectification

ITR filing: Income Tax dept now allows you to lodge rectification requests online for incorrect ITR processing

The Income Tax Department has introduced a new feature on its e-filing portal that allows taxpayers to submit rectification requests online, even if their Income Tax Returns (ITRs) are currently being reviewed by the Assessing Officer (AO). This enhancement streamlines the process of error correction and eliminates the need for manual submissions.

Taxpayers should be aware that errors may occur during the processing of their Income Tax Returns (ITR) by the I-T department. These errors can typically be identified in documents such as the Annual Information Statement (AIS) or TDS certificates. To rectify these noticeable discrepancies, taxpayers are required to submit a rectification application to either the Centralised Processing Center (CPC) or the Assessing Officer (AO), based on their access rights to the ITR.

Previously, taxpayers encountered difficulties when trying to rectify errors in their ITRs. If the Centralised Processing Centre (CPC) had the necessary access rights, rectification applications could be submitted electronically. However, when access rights were transferred to the AO, taxpayers were required to submit paper-based requests.

How to file a Rectification Application

Taxpayers now have the option to submit rectification requests online, even if their Income Tax Returns (ITRs) are under review by the Assessing Officer (AO). This enhanced feature simplifies the rectification process, eliminating the need for manual submissions that were frequently associated with delays and complications.

The updated system will allow taxpayers to file rectification requests online, regardless of who holds access rights.

Please access the Income Tax Return (ITR) e-filing portal.

Enter your credentials (User ID, password, and Captcha code) to log in.

After logging in, navigate to the ‘services’ tab.

Select ‘rectification’ from the drop-down menu.

Within the rectification section, opt for ‘Request to AO Seeking Rectification’.

Click on ‘New Request’ on the subsequent webpage to begin your rectification application.

Who can benefit from rectification facility? 

The new feature addresses various issues, including discrepancies in reported income and tax records, missing or incorrect Tax Deducted at Source (TDS) credits, and exclusions of eligible deductions or exemptions.

In a recent development, the Income Tax Department has introduced a significant update for eligible taxpayers seeking the Section 87A tax rebate in the financial year 2023-24.

As of December 31, 2024, affected taxpayers have the option to file revised or belated Income Tax Returns (ITR) to claim the rebate.

Qualified individuals can submit revised or belated ITRs through the e-filing portal or the ITR filing utility. The department has confirmed that updated utilities for ITR forms 2 and 3, with the ability to claim the Section 87A rebate, will be available soon.

ITR filing deadline extension big update

ITR Filing Last Date FY 2023-24 (AY 2024-25): The Income Tax Department has not extended the deadline for filing income tax returns (ITR) for FY 2023-24 for taxpayers subject to audit and other designated income taxpayers.

Earlier, the tax department extended the deadline by 15 days for ITR filing for FY 2023-24 for audit cases from the original deadline of October 31, 2024. No further extension was announced by the tax department regarding this deadline.

Penalty for ITR filing now

A taxpayer who must file an ITR by November 15, 2024, can still file his tax return. This will be termed a belated ITR. While filing a belated ITR, he will be required to pay a penalty (also known as a late filing fee).

The last date to file belated ITR for FY 2023-2024 (AY 2024-25) is December 31, 2024.

The last date to file belated ITR for FY 2023-2024 (AY 2024-25) is December 31, 2024.

A penalty of up to Rs 5,000 will be levied under Section 234F. The penalty amount will depend on the taxable income.

Along with the penalty, a taxpayer will be subject to certain other consequences as well. This includes penal interest under sections 234A and 234B. While filing a belated ITR, the taxpayer will not be allowed to carry forward losses.

Income Tax Filing Due Dates for FY 2023-24 (AY 2024-25)

Category of TaxpayerDue Date for Tax Filing – FY 2023-24
*(unless extended)
Individual / HUF/ AOP/ BOI     
(books of accounts not required to be audited)		31st July 2024
Businesses (Requiring Audit)15th November 2024
Businesses requiring transfer pricing reports   
(in case of international/specified domestic transactions)		30th November 2024
Revised return31st December 2024
Belated/late return31st December 2024
Updated return31 March 2027 (2 years from the end of the relevant Assessment Year)

Consequences of Missing the ITR Filing Deadline

Interest

If you submit your return after the deadline, you will be liable to pay interest at a rate of 1% per month or part month on the unpaid tax amount as per Section 234A.

Late fee

In case of late filing, Section 234F imposes a late fee of Rs.5,000, which shall be reduced to Rs.1,000 if your total income is below Rs.5 lakh.

Loss Adjustment

In case you have incurred losses from sources like the stock market, mutual funds, properties, or any of your businesses, you have the option to carry them forward and offset them against your income in the subsequent year. This provision substantially reduces your tax liability in future years. However, you will not be allowed to carry forward these losses if you miss filing your ITR before the deadline.

Belated Return

If you miss the ITR filing due date, you can file a return after the due date, called a belated return. However, you will still have to pay the late fee and interest charges, and you will not be allowed to carry forward any losses for future adjustments. The last date for filing a belated return is 31st December of the assessment year (unless extended by the government). Therefore, for this year, you may submit the belated return by 31 December 2024 at the latest.

Updated Return

Still, if you miss the 31st December deadline due to unavoidable reasons still you can file the updated (ITR U) return subject to the conditions specified therein.

What are Financial Year (FY) and Assessment Year (AY)?

The return you will file in the upcoming year is for the income you earned in FY 2023-24, i.e. for the income earned between 1 April 2023 and 31 March 2024. The assessment year is the review year for FY 2023-2024, where you file your returns and declare your returns by declaring all the incomes, exemptions, deductions, losses etc., already made or incurred during the year for tax assessment. For the income earned during the FY (here FY 2023-24), the assessment year would be the immediately next year, i.e. 1st April 2024 to 31st March 2025. Hence, the assessment year would be AY 2024-25.

Important Due Dates for Paying Advance Tax Instalments for FY 2024-25

Whenever we talk about income tax, there are certain tax formalities that need to be followed within the specified due dates, such as filing income tax returns, paying advance tax on time, etc.   

The due dates for the payment of advance tax are:

Due dateNature of complianceTax to be paid
15th June 2024First instalment15% of tax liability
15th September 2024Second instalment45% of tax liability
15th December 2024Third Instalment75% of tax liability
15th March 2025Fourth instalment100% of tax liability
15th March 2025Presumptive scheme100% of tax liability

Income Tax Department has issued a warning for taxpayers

The Income Tax Department has issued a warning for taxpayers who missed the July 31 deadline to file their income tax return (ITR) for financial year 2022-23. In a post on social media platform X, the department said these taxpayers must do that by December 31, 2023. The post made it clear that this is the “last chance” to file the belated/revised ITR for the financial year. The Income Tax Department’s post also mentioned the difference between revised and belated ITRs.

Kind Attention Taxpayers, 31st December, 2023 is your last chance to file a belated/revised ITR for AY 2023-2024. Hurry! File your ITR before the due date,” the post on X said.

The department also shared a link to its website where users can find all the information about filing ITRs.

The income tax department rules has made it mandatory for every person to file return of income with effect from assessment year 2020-21. It has also laid down three main conditions for people who will have to pay the income tax. These are: If per person has deposited Rs 1 crore or more in one or more current account, has incurred aggregate expenditure in excess of Rs 2 lakh for himself or any other person for travel to a foreign country, and has an aggregate expenditure in excess of Rs 1 lakh towards payment of electricity bill.

The department has also said that people who fail to file the income tax return within the specified time limit, a belated return can be filed under Section 139(4) of the income tax act. There is no separate form for belated ITR, an assessee will have to use the forms notified for a particular assessment year.

If a taxpayer fails to file even the belated ITR, he/she may face certain “adverse consequences. As per the Income Tax Department, the loss (other than income from house property) cannot be carried forward, levy of interest under Section 234A and fee under Section 234F, the taxpayer will also not be entitled for exemptions under Sections 10A and 10B, and deductions under Part-C of Chapter VI-A will not be available.

Section 234F mandates a penalty of Rs 5,000, or Rs 1,000 for small taxpayers, and a 1 per cent per month penal interest under Section 234A is applicable on pending income tax payment.

Another important step is to verify the filed ITR within 30 days. It is essential to initiate processing and any unverified ITR will be considered as not filed by the Income Tax Department.