Extended due dates of Income Tax Return and Tax Audit

Extended due dates of Income Tax Return and Tax Audit

The Indian government has extended the deadline for filing the Annual Income Tax Return (ITR) for Fiscal Year 2020-21 from September 30, 2021 to December 31, 2021 for Indian citizens.

Those whose accounts do not require an audit and who typically file a tax return are eligible for the extension. Forms ITR-1 and ITR-4 are used to report income.

The Finance Ministry stated in a statement that the decision was based on taxpayers’ and other stakeholders’ allegations of difficulties in completing income tax returns and different audit findings for the 2021-22 assessment year under the Income Tax Act of 1961.

Individuals’ deadline to file their Annual Income Tax Return (ITR) for fiscal year 2020-21 has been extended from July 31, 2021 to July 31, 2022. From the beginning, various challenges and problems have eclipsed the new gateway for e-filing income tax returns. Finance Minister Nirmala Sitharaman has given Infosys, the corporation responsible for the new income tax site, until September 15, 2021 to remedy any difficulties.

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Individuals’ ITR application deadlines were extended four times last year, initially from 31 July to 30 November 2020, then till 31 December 2020, and finally until 10 January 2021.

Due to difficulties experienced by taxpayers in completing income tax returns (ITR) and audit reports for the fiscal years 2021-22 under the Income Tax Act of 1961, the CBDT has extended the deadline for filing ITR and audit reports for the fiscal years 21-22. The IT department tweeted, “Circular 17/2021, dated 09.09.2021, has been issued.”

The deadline for filing audit reports for the preceding fiscal year 2020-21 in conformity with all statutory provisions has been extended to January 15, 2022.

The deadline for filing an accountant’s report under Article 92F of the Act by anyone who made certain international or domestic transactions in the preceding year 2020-21 is now 31 January 2022.

IT has agreed to extend the deadline for filing SPT PPh AY 2021-22, as well as various other deadlines, to February 15, 2022.

The deadline for submitting returns for the 2021-22 appraisal year, which was previously set for December 31, 2021, has been pushed back to February 28, 2022.

For the 2021-22 AY, the deadline for awarding pending or revised income refunds has been extended to March 31, 2022.2022.

Income Tax Return: Why you shouldn’t wait for the extended due date to file ITR

Why you shouldn’t wait for the extended due date to file ITR

Due to concerns about technological issues in the new Income Tax Portal, the deadline for reporting ITR has been extended to provide relief to taxpayers in the wake of the Covid-19 outbreak.

Due to technological issues in the new Income Tax Portal, the due date for filing Income Tax Return (ITR) has been prolonged in this Assessment Year (AY 2021-22), first to September 30, 2021, and subsequently to December 31, 2021, as it was in the Covid-hit previous Assessment Year (AY 2020-21).

“The Central Government has extended the deadline for filing income tax returns for the financial year 2020-21 to provide relief to taxpayers, amid the Covid-19 pandemic, and due to concerns and technical glitches in the Income Tax website, regarding filing and verification of returns, among other things,” said Kapil Rana, Founder & Chairman, HostBooks Ltd.

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For late filing and payment of taxes, the taxpayer must pay interest. Interest is charged under section 234A if an ITR is not filed on time.

“If the taxpayer has not paid advance tax or has paid less than 90% of the tax burden, he or she will be required to pay interest at the rate of 1% every month or part of the month from April until the date of payment of tax,” he added.

Interest on Taxes Due

“Under section 208, a person is liable to pay advance tax if his tax liability for the year is Rs 10,000 or more,” Rana added, referring to the interest on tax payable. Even if you are late in filing your ITR, it is preferable to pay the advance tax as soon as possible.

In terms of advance tax payment, an individual who is a resident of India and has income other than income from business and profession is not obligated to pay tax in advance, and hence interest under section 234B does not apply to such a person.”

“In cases where the amount of tax on total income after deduction of advance tax, TDS/TCS, any tax relief allowed u/s 89, 90, 90A & 91, and alternate minimum tax credit exceeds Rs 1 lakh, interest under section 234A will be applicable because there are no issues with tax payment and the website is working seamlessly,” he added.

Fee for being late

In addition to the interest on the tax owed, failure to pay by the due date incurs a late fee under section 234F of the Income Tax Act.

  • “If the return is submitted beyond the due date, late fines of Rs 5,000 would be charged. The cost will be Rs 1,000 if the overall income does not exceed Rs 5 lakh,” Rana explained.

  • However, if you miss a due date up until December 31 of an Assessment Year, you’ll be charged Rs 5,000, and if you miss it after that, you’ll be charged Rs 10,000.

  • So, if a taxpayer misses the extended deadline of December 31, 2021, he or she will be fined twice as much, or Rs 10,000.

ITR filing increased to 3.2 lakh daily in September, 2021

ITR filing increased to 3.2 lakh daily in September, 2021

Updates to the Income Tax Department’s e-Filing portal

The Income Tax Department’s e-Filing site (www.incometax.gov.in) was introduced on June 7, 2021. Since then, taxpayers and professionals have experienced flaws and problems with the service. The Ministry of Finance has been keeping a close eye on how concerns with Infosys Ltd, the project’s Managed Services Provider, are being resolved.

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A number of technical issues are being addressed one by one, and the statistics for the various filings on the portal are showing a favourable trend. Since September 7, 2021, over 8.83 crore unique taxpayers have signed in, with a daily average of over 15.55 lakh in September 2021. In September 2021, the number of ITRs filed grew to 3.2 lakh per day, with 1.19 crore ITRs filed for the fiscal year 2021-22. Over 76.2 lakh taxpayers have used the portal’s online service to file their forms.

It’s good to see that over 94.88 lakh ITRs have been e-verified, which is required for the Centralized Processing Center to process them. 7.07 lakh ITRs have been processed so far.

Over 8.74 lakh Notices issued by the Department under the Faceless Assessment/Appeal/Penalty proceedings have been viewed by taxpayers, with over 2.61 lakh answers filed. On a daily basis in September 2021, an average of 8,285 Notices for e-proceedings were issued and 5,889 answers were filed.

Over 10.60 lakh statutory forms have been filed, including 7.86 lakh TDS statements, 1.03 lakh Form 10A for trusts/institutions registration, 0.87 lakh Form 10E for salary arrears, and 0.10 lakh Form 35 for appeals.

Applicability of Tax Audit under section 44AB or 44AD or 44ADA

66.44 lakh taxpayers have linked their Aadhaar numbers to their PAN numbers, and over 14.59 lakh e-PANs have been issued. In September 2021, around 0.50 lakh taxpayers were using these two services on a daily basis.

The Department is continuing to work with Infosys to ensure that taxpayers have a positive filing experience.