Have you forgotten to double-check your tax return? Carry it out.

Have you forgotten to double-check your tax return? Carry it out

While ITRs can be validated electronically in five different methods, a physical copy can also be sent to Bengaluru’s Centralized Processing Centre (CPC).

One of the most significant financial tasks of the year is the filing of income tax returns. It’s critical that you file your income tax return on or before the deadline, with complete and correct information about your earnings and any other information requested on the ITR form. The deadline for reporting ITRs for FY2020-21 is December 31, 2021.

ITR verification is the final step in the income tax return filing process. The ITR must be confirmed within 120 days of the filing date, according to income tax legislation. A taxpayer has six options for verifying their return. While ITRs can be validated electronically in five different methods, a physical copy can also be sent to the Centralized Processing Centre for verification (CPC), Bengaluru.

Note that if an ITR is not confirmed within 120 days of filing, the income tax authorities will not consider it a genuine return. Furthermore, if the ITR is not confirmed, it will not be accepted for processing by the tax department. Furthermore, taxpayers will not receive any tax refund unless they have filed a validated ITR that has been confirmed by the income tax department after processing.

What to do if the ITR isn’t confirmed within the allotted time:

An individual can file a condonation delay request on the e-filing income tax site if an ITR was not verified within the statutory time limit owing to a legitimate reason. They will be asked to explain why the ITR was not confirmed earlier when filing such a request. If specific circumstances are met, the income tax department will grant a request for a deferral in payment. The following are some of the criteria:

  • A claim is true and accurate;
  • In the hands of another individual, income for which a tax return has been submitted is not assessable;
  • The taxpayer is experiencing genuine hardship as a result of the ITR not being confirmed in a timely manner.

If you have failed to verify your tax return, here’s how you can file condonation delay request:

Step 1: Login to your account on the income tax portal.
Step 2: Under the ‘Services’ tab on your Dashboard, select ‘Condonation Request’.
Step 3: On the ‘Condonation Request page’, select the type of condonation request you want to proceed with. (Currently income tax department shows only one option: Delay in submission of ITR-V). Select it and click on ‘Continue’.
Step 4: On the ‘Delay in submission of ITR-V’ page, click on ‘Create Condonation Request’.
Step 5: On the ‘Select ITR page’, select the record for which you want to raise a condonation request for delay in ITR-V submission and click on ‘Continue’.
Step 6: On the ‘Provide reason for delay page’, select the reason of your delay and click on Submit.

Step 5: On the ‘Select ITR page,’ select the record for which you want to submit an ITR-V delay condonation request and click ‘Continue.’
Step 6: Select the cause for your delay on the ‘Provide explanation for delay page’ and click Submit.

A success notification will appear, along with a Transaction ID. Make a mental note of the Transaction ID for future use. A confirmation message will be sent to the email address and mobile number you provided when you registered with the e-Filing portal.

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Keep in mind that there is no explicit provision in the Income Tax Act that specifies a time restriction for filing a condonation delay request. However, the CBDT has stated in Circular No. 9/2015 dated June 9, 2015 that no condonation application for a refund/loss claim will be considered after six years from the end of the assessment year for which the application/claim is lodged.

How to keep track of a delay condonation application’s progress:

Through the new income tax site, you can quickly check the status of your condonation request. The ‘Condonation Request’ option under the ‘Services’ tab can be used to track the status. You will not be able to file an ITR until your delay condonation request is approved. While there is no set timeframe for acceptance or denial of a condonation request, the tax department typically processes such requests in 3 to 4 months.

What if your request for a condonation delay is denied?

If the application is denied, the return will remain unverified, and a non-verified return is viewed as an invalid return under income tax regulations, meaning the individual will be responsible for all of the repercussions of failing to file a tax return. If the assessee’s request for a condonation is denied, they will be liable to criminal sanctions under the IT law.

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Consequences of failing to file an ITR:

  • Section 234F imposes late filing fines of Rs 5,000. However, if the taxpayer’s total income is less than Rs 5 lakh, late costs are limited to Rs 1,000.
  • In addition, any amount of tax that remains unpaid would be subject to interest at 1% per month or part of a month under section 234A.
  • Due to non-filing of the tax return within the statutory due dates, the opportunity to claim certain deductions and/or set off and carry forward of losses other than losses from house property loss is lost.
  • The Internal Revenue Service (IRS) can charge a penalty under 270A for under-reporting income, which is equal to 50% of the tax saved by the taxpayer due to non-filing of a return.
  • The taxman can also bring a case against the defaulting taxpayer under section 276CC, which can result in a sentence of rigorous imprisonment for a period ranging from three months to two years, as well as a fine, based on the amount of tax avoided.

What is ‘e-invoicing’?

What is ‘e-invoicing’?

‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.

Notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN).


e-Invoicing was introduced aiming at machine-readability and uniform interpretation. To ensure this complete ‘inter-operability’ of e-invoices across the entire GST eco-system, an invoice standard is a must. By this, e-invoices generated by one software can be read by any other software, thereby eliminating the need of fresh/manual data entry.

Applicability

1st Oct 2020 – Aggregate T/o > INR 500 Crores in any preceding financial year from 2017-18 onwards

1st Jan 2021 – Aggregate T/o > INR 100 Crores in any preceding financial year from 2017-18 onwards

1st Apr 2021 – Aggregate T/o > INR 50 Crores in any preceding financial year from 2017-18 onwards

e-invoicing doesn’t apply in B2C transactions (i.e. supply of goods or services or both to an unregistered person)

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Non-Applicability

e-invoice doesn’t apply to the following category of persons irrespective of their turnover-

1. Special Economic Zone units (not SEZ Developers),

2. An insurer,

3. An NBFC,

4. A Goods Transport Agency,

5. A banking company,

6. A financial institution,

7. A person supplying passenger transportation services,

8. A person supplying services of admission to the exhibition of the cinematographic films in multiplex services.

e-invoicing is also not applicable on Import of goods/ services, ISD invoices, Nil-rated/ wholly exempt supplies.

Note:- e-invoicing apply to RCM transactions as well

What documents are presently covered under e -invoicing?

i. Invoices
ii. Credit Notes
iii. Debit Notes

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What supplies are presently covered under e -invoice?

• B2Bsupplies (includes supplies under same PAN),
• Supplies to SEZs (with/without payment)
• Exports (with/without payment)
• Deemed Exports
by notified class of taxpayers are currently covered under e-invoicing.

What are the benefits of e-invoicing?

1. One-time reporting of B2B invoices while generation, which reduces reporting in multiple formats.
2. Most of the data in form GSTR-1 can be kept ready for filing while using e-invoicing system.
3. E-way bills can also be generated easily using e-Invoice data.

4. There is minimal need for data reconciliation between the books and GST returns filed.
5. Real-time tracking of invoices prepared by a supplier can be enabled, along with the faster availability of input tax credit. It will also reduce input tax credit verification issues.
6. Better management and automation of the tax-filing process.
7. Reduction in the number of frauds as the tax authorities will also have access to data in real-time.
8. Elimination of fake GST invoices getting generated.

Haven’t received an Income tax refund yet? Follow these Steps

Haven’t received an Income tax refund yet? Do this

If there is a discrepancy between the information on the tax return and the information on file with the IRS, the refund may be delayed. Another reason for the delay could be if the bank account information provided is inaccurate.

Between April 2021 and October 4, 2021, the Central Board of Direct Taxes (CBDT) paid refunds of Rs 82,229 crore to over 53.54 lakh taxpayers. Tax refunds are usually paid within 20-45 days of the conclusion of ITR processing by the Centralized Processing Centre (CPC).

You should receive your refund within 30-45 days after your income tax return (ITR) has been submitted. However, there are a variety of reasons why your refund may be delayed.

Income Tax Refund can be claimed when:

  • You did not provide your company with all of the investment proofs. As a result, your employer’s tax deductions exceeded your actual tax due for the fiscal year.
  • On your interest income from bank FDs or bonds, excess TDS was deducted.
    The advance tax you paid on self-assessment exceeds your regular assessment tax liability for the corresponding FY.
  • If there is a case of double taxation,

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How to check Income Tax refund status:

On the National Securities Depository Ltd (NSDL) website, as well as the Income-tax Department’s e-filing portal, you can check the status of your income tax refund.

1. On the NSDL website, for starters.

Step 1: To trace your return, go to the NSDL website.
Step 2: A new window will open, displaying the following webpage. Fill in the required information, including PAN and AY, and then click ‘Proceed.’
Step 3: The status of your income tax refund will be presented, as shown in the figure below.

2. On the e-filing site:

Step 1: Go to the Income Tax Department’s e-filing portal by clicking here.
Step 2: Select View Returns/ Forms from the drop-down menu.
Step 3: Select ‘Income Tax Returns’ from the ‘My Account page. Submit the form.
Step 4: Select the acknowledgement number from the drop-down menu.
Step 5: A page showing your return details along with income tax refund status will appear.

Haven’t received an income tax refund yet? Reasons for delay

Tax refunds are usually paid within 20-45 days of the conclusion of ITR processing by the Centralized Processing Centre (CPC). If there is a discrepancy between the information on the tax return and the information on file with the IRS, the refund may be delayed. Another reason for the delay could be if the bank account information provided is inaccurate.

Reasons why the refund hasn’t reached you and what to do:

1. Your reimbursement request requires further evidence from the IT department: Contact the assessing officer as soon as possible by phone or mail, and send the needed paperwork. Obtain a written acknowledgement from the officer.

2. Request for a refund was denied. According to the IT department, you owe them the following taxes: The government may send you a notification detailing the amount of unpaid taxes. In this situation, double-check all of your paperwork and compute your tax liability and refund due. File a rectification to support your claim if the figures you entered in the returns form are valid.

If the returns filed is found to be incorrect, pay the outstanding tax demanded by the department within the time limit mentioned in the notice.

3. Refund request determined to be erroneous by the IT department: If the department determines that your refund request is incorrect, you will receive a note stating why. You can file a rectification to support your claim even if you receive the notice.

4. Forgot to add a tax break you’re entitled to: If your returns have not yet been processed by the IT department, you can go ahead and modify them to include the missing deductions.

5. The bank account information provided to the IT department for tax filing has changed: If your bank account information has changed, inform your assessing officer of the new account number and MICR code. The evaluating officer will advise the bank of this information and request that the money transfer process be updated.

If you haven’t still received your refund, do these things:

1. Review your ITR:

If there is a discrepancy between the information on your tax return and the information on file with the IRS, your refund may be delayed. So, go over your ITR to see if you made any mistakes. If you haven’t received your refunds or received any correspondence from the IRS in the last two months, the first thing you should do is review your ITR.

2. Additional information:

The Income Tax Department may require additional documentation to process your refund request in some situations. If the department requires more proof to complete your refund request, please contact the assessing officer as soon as possible by phone or mail and submit the needed documentation to ensure that your refund request is processed quickly and the cash credited as soon as possible.

3. Re-evaluate:

If there is an outstanding tax amount, refund claims may be denied, and you may receive a letter from the department specifying the overdue tax amount. If you find yourself in this scenario, go over all of your documentation and recalculate your tax liability and refund. File a rectification to support your claim if the figures you entered in the returns form are valid. If your ITR is discovered to be erroneous, you must pay the outstanding tax sought by the department within the time frame specified in the notice in order to get your refund.

 

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4. Mistakes in ITR:

Your refund will be delayed if you select the incorrect ITR form, misspell important personal details, or provide incorrect information. Income tax refunds are now solely granted electronically, according to the tax department’s new method, which implies that refunds are credited directly to the taxpayer’s bank accounts. If the bank account number entered on the tax form is wrong, reimbursements will be delayed until the error is addressed. If you make this mistake, you can update your bank account information on the income tax department’s website. It is critical that you provide a bank account that is linked to a permanent account number.

If there are discrepancies between the data you provided last year and what you did this year, an IT official will extensively examine your records to see if you need to submit further information. You may receive a request from the IT department to provide additional information.

5. Income or tax amount mismatch:

If there is a discrepancy in income from different sources, the refund process may be delayed. This usually occurs when the information on Form 16 does not match the TDS information on Form 26 AS. When an ITR cannot be completed because of a proposed adjustment under section 143(1)(a) or because it is defective under section 139, the refund is also delayed (9). To ensure that your refund request is met, you will need to file an amended return.

6. Prevalidating the bank account:

The bank account must be prevalidated in order to get an income tax refund. You can access profile settings by going to the income tax department’s website and logging in with your PAN and password. You can easily find a prevalidation option for your bank account. Pre-validation will be done directly using an electronic verification code (EVC) and net-banking route if your bank is integrated with the e-filing portal. Your bank account number, IFSC code, mobile number, and email address associated with that account must all be provided.

It’s worth noting that if you make a mistake on your ITR and the department sends you a communication, you’ll only get it if you provided accurate communication information.