July presents numerous critical deadlines that must be noted. To begin, the income tax return (ITR) filing date is approaching, therefore taxpayers must assure timely submission. Furthermore, the deadline for electing increased pension contributions through the Employees’ Provident Fund Organisation (EPFO) is an important issue.
The income tax return (ITR) deadline for FY 2022-23 (AY 2023-24) is July 31, 2023. It is best to file your ITR before the deadline. If you miss the deadline, you can file a belated ITR. The deadline for filing a belated ITR for FY 2022-23 (AY 2023-24) is December 31, 2023, unless extended by the government. A late fee will be imposed if the ITR is filed after the due date (July 31) but before December 31, 2023. A late fee will be levied while filing a belated return as per under Section 234F
Gross total income is up to Rs 2.5 lakh: No Penalty
Gross total income is Rs 2.5 lakh – Rs 5 lakh: Rs 1,000 fee
Gross Total income more than Rs 5 lakh: Rs 5,000 fee
Another significant date is July 15, when Tax Deducted at Source (TDS) certificates for May tax deductions must be provided. Tax deducted or collected in June must be submitted by July 7, and the Quarterly Tax Collection at Source (TCS) certificate for the fiscal quarter ending June 30 is usually issued in July. Rates increased on select saving schemes
In keeping with the high interest rates in the banking system, the government has raised interest rates on specified savings programmes by up to 0.3% for the July-September quarter. The five-year recurring deposit (RD) saw the greatest rise of 0.3%. RD investors would receive 6.5 percent instead of the present 6.2 percent for the second quarter of the current fiscal year.With the modification, a one-year term deposit with a post office will now earn 0.1 percentage point more, at 6.9 percent, while a two-year term deposit would earn 7% (up from 6.9%). However, interest rates on three- year and five-year term deposits have remained unchanged at 7% and 7.5%, respectively. The popular PPF and savings deposit interest rates remain unchanged at 7.1% and 4%, respectively.
The Employees’ Provident Fund Organisation (EPFO) has extended the deadline for choosing a higher pension until July 11, 2023. EPFO has developed an online capability for employees to pick increased pension contributions if they so desire. This can be accomplished through a joint application with the assistance of the EPFO utility.
The Income Tax Act’s obligation to link Aadhaar and PAN went into force on July 1, 2017. Since then, the income tax administration has repeatedly delayed the deadline to link the two, with the most recent deadline being June 30, 2023. Those who have not yet linked their PAN card will no longer be able to use it. It should be noted that while income tax returns can be filed without linking the two, the department will not process them until PAN and Aadhaar are linked.
Read More: How to report tax on gains from Equity Mutual Funds in Income Tax Return for AY 2023-24
The following are the effects of PAN becoming inactive:
(i) No refund will be provided against such PANs; and
(ii) no interest will be paid on such refund for the period in which the PAN remains inoperative.
(iii) As stipulated in the Act, TDS and TCS will be deducted/collected at a higher rate.
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