It’s important for taxpayers to know and understand all tax deadlines.
If you overlook the deadline, you might have to pay a penalty, interest, or additional taxes.
Following are a few important tax deadlines a taxpayer needs to be mindful of:
1. Filing Of Annual Income-Tax Returns:
Every taxpayer whose income is chargeable to tax is required to file tax returns annually.
- Due date for individuals/firms (not subject to audit)–July 31, every year.
- Due date for individuals/firms/companies (subjected to audit but not transfer pricing) –October 31.
- Due date for individuals/firms/companies (subject to audit and transfer pricing) –November 30.
“Late filing / non-filing is subject to interest and other penal consequences. Further, it is mandatory to file tax returns to claim and carry forward losses to future years,” warns Anita Basrur of Sudit K Parekh and Company LLP.
2. Filing Of Tax Audit Report:
Every taxpayer, whose gross receipts /turnover, exceeds specified limits, is required to get their accounts audited by a chartered accountant.
- Due date for individuals/firms/companies (subjected to audit but not transfer pricing) –September 30
- Due date for individuals/firms/companies (subjected to audit as well as transfer pricing) –October 31.
“Failure to comply with this requirement calls for a penalty of Rs 1,50,000 or 0.5 percent of total sales/turnover,” adds Basrur.
3. Filing Of Withholding Tax Returns (TDS and TCS)
Every taxpayer (except individuals/firms not subjected to tax audit) is required to withhold tax at applicable rates on payments made by it towards services and purchase of goods subject to prescribed threshold limits. Further, tax is required to be collected in case of the sale of goods.
Apart from withholding/collection of taxes, the taxpayer is required to file withholding tax returns on a quarterly basis.
Non-filing of such returns attracts a penalty of Rs 200 per day till the time such default continues.
4. Filing Of SFT Returns
Persons who have entered into prescribed specified financial transactions are required to report such transactions to the income-tax authorities on or before May 31 of the financial year following the financial year in which the transaction is recorded.
“While most of the entities often miss reporting such transactions, failure to furnish such a report entails a penalty of Rs 500 per day from the expiry of the due date up to the date of notice and Rs 1,000 per day from the date when the notice expires. Further, inaccurate furnishing of such reports also attracts a penalty of Rs 50,000, and thus it is imperative to report such transactions.