At this time of the year, there’s excitement around the new year, and party plans are well underway. However, it is important to make sure that all of your compliances are in place before donning your party hat and starting the countdown to midnight, as December 31 is the deadline for voluntarily filing income tax returns (ITR) for all the previous years.
Filing a return indicates that you are a responsible citizen of a country. It is a moral & social obligation of each and every individual.
Tax Filing Stats:
Surprisingly this year, a new record of over 72.42 lakh (7.24 m) ITRs were filed on a single day. About 5.83 crore ITRs were filed till 31st July, 2022, as compared to 3.83 cr returns filed till 19th December 2021.
Tax Filing due dates:
According to the law, the ITD can charge taxpayers with penalties for failure to file a return and non-payment of taxes.
So, keep in mind: the sooner you pay, the less you owe!
A few important deadlines with regard to filing an ITR for FY 2021-22/AY 2022-23
Furnishing your ITR not only puts you on the good side of the income tax authorities, but it may also lead to other tangible personal benefits, such as the ability to obtain credit, foreign travel visa, and, in the case of tax refunds, cash envelopes. You must submit your ITR for each of these.
So, now let’s recall the to-do’s before 31st Dec 2022
- File a Belated Return: A Belated Return u/s 139(4) is the return filed after the due date. The due date to voluntarily file your ITR for FY 2021-22/AY 2022-23 is December 31 2022. This means that if you failed to submit your ITR by the due date (July 31 for individuals), you may still do it voluntarily through December 31. However, if you file a belated return, here are a few consequences of the same:
- Interest Penalty u/s 234A @ 1% of tax liability per month or part thereof
- Late filing fees 234F up to Rs.10,000 if the gross total income is Rs. 2.5L or more
- Can’t carry forward losses
- Certain exemptions/deductions are disallowed
Here’s how you can prepare & file a return on Quicko.
- Revised Return: Any corrections to errors, omissions, or false representations in the original ITR filed prior to the due date must be done by December 31. Although there are no limitations on the number of times you can file an amended return, the deadline for doing so is December 31.
You can Book a MEET for assistance with your notices and other tax compliance and get your taxes done before the last late.
- Verification of returns: Filing an ITR is not the last step. In order to complete the ITR process, a taxpayer is required to verify his ITR. This is because the ITD processes an ITR only after it is verified. Moreover, the refund is issued only for the ITR’s which have been verified.
With effect from 1 August 2022, the ITD has revised the date to e-verify the return from 120 days to 30 days. If for any reason, you are not able to verify the return electronically, you can still do the same physically by sending a signed copy of the ITR-V to CPC Bangalore within 30 days of filing the return.
Hope this information is helpful, engage in conversation for any doubts!