Due date of filing ITR extended till 31st Aug 19 (By CBDT)

The income tax expert has extended the due date for income tax return filing to 31st August from 31st July ’19’. The CBDT took this choice on Tuesday to give a major relief to tax payers who were confronting challenges while filing the income tax return. With the extension of the due date, there is an adequate time for the people to file their returns on time without stressing over any late charges or penalty. Although, as per the income tax department, the expansion applies to all assessees other than corporate tax payers and a couple non-corporate entities.

Taking to Twitter, the Income Tax Department said the due date for filing of ITR for the assessment year 2019-20 was July 31 for specific categories of tax payers on consideration of the matter, the CBDT extended the due date.

Prior to this notice, the CBDT had stretched out the due date for employers to document their TDS returns, i.e., Form 24Q, from May 31, 2019 to June 30, 2019 and consequently due date of issuing Form 16 by the employer was also extended from June 15, 2019 to July 10, 2019. Hence, employees holding back to get their Form 16 to file their ITRs were left with just 21 days to file their tax return by the previous due date of July 31.

In addition, if you don’t file their returns before the due date for example 31st August ’19’, they will be obligated to pay penalty and other procrastination charges by the Authorized dept. Thus, it is important to file your returns regardless of confronting any legal proclamations or notices.

While, if people don’t file income tax returns at the very latest the due date, they would be obligatory  at the rate of 1% for consistently, or part of a month, on the measure of tax remaining unpaid according to section 234A.

A taxpayer is liable to pay late ITR documenting fees of:

According to section 234F if return isn’t filed till the due date but is filed till 31 December then fees of Rs. 5,000 is to be paid and if that return isn’t documented even after 31 December, at that point charges of Rs. 10,000 is to be paid. However, where total pay of the person does not surpass Rs. 5,00,000 at that point charges under section 234F will not surpass Rs. 1,000.

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GST Taxpayers will get ‘risk scores’ very soon

The goods and service tax (GST) specialists will soon draw up long draw up a list of tax payers with ‘risk scores’ that will choose the degree of audit scrutiny they face.

A broad plan is being worked out despite the fact that annual return filings has been delayed by two months to August 31. Audits of these returns for 2017-18 was to initiate from July.

The directorate general of audits has communicated a plan to field, setting the ball moving for the activity that will be first after the take off of new tax routine.

A list of tax payers alongside risk scores will be given to field arrangements in isolating them in three classifications according to their turnover. These would be assigned risk flags for the field’s convenience. Parameters and categorisation will be changed for some audit commissionerate to guarantee sufficient portrayals of risky tax payers in every category.

Around 70 percent of taxpayers must be examined in every category based on risk parameters in the order of sequence, while 10 percent will be chosen haphazardly. Remaining 20 percent to be chosen by the commissionerate, thinking about local risk parameters, if adequate taxpayers have not filed annual return, audit commissionerate should keep directing legacy audit under excise and service tax up to 31 August 2019, in case taxpayers are accessible for such audit.

Tax specialists state business need be set up for these audits.

“Organizations ought to be cautious in submission of the GST audit information and guarantee that it is reconciled before submission as this information will likewise be utilized for live audits in future in addition to being utilized to decide the taxpayers who might be subjected to the audit ” M S Mani, Partner, Deloitte India.

They also batted for leniency.

“Since this will be the first on location GST audit which will be directed by office it will be great in the event that they are lenient on the tax positions received by organizations on issues which were not exceptionally clear at the onset of GST usage,” said Anita Rastogi, accomplice, PwC.

This is significant as there is a distinction between non installment of tax due to interpretational issues and purposeful tax avoidance, she included.

For further details or clarifications, contact Certicom Consulting.