In a relief to taxpayers, the government on Thursday extended the due dates for filing GST annual returns for 2017-18 to December 31 and for the financial year 2018-19, to March 31 next year.
The dates for filing the reconciliation statement has also been extended accordingly.
In another relief, it has also decided to simplify the two GST forms by making various fields of these forms as optional, the Central Board of Indirect Taxes and Customs (CBIC) said in a statement.
“The government has decided today (Thursday) to extend the due dates of filing of Form GSTR-9 (Annual Return) and Form GSTR-9C (Reconciliation Statement) for 2017-18 to December 31, 2019 and for 2018-19 to March 2020,” it said.
The earlier deadline for filing of GSTR-9 and GSTR-9C for 2017-18 was November 30, 2019, while that for 2018-19 was December 31, 2019.
Notifications regarding the extension of the dates have been issued.
This is the fourth extension being given to businesses to comply with the return filing requirement for the July-April period of FY18 in view of the numerous changes in rules as well as the difficulties faced by them in shifting to the new technology reliant indirect tax regime.
GST return Form GSTR-9C is a statement of reconciliation between the GST annual return and the audited financial statement of the tax payer.
The CBIC in the revenue department has also notified the amendments regarding the simplification of the annual return and reconciliation statement forms.
A reconciliation statement allow taxpayers to not provide split of input tax credit availed on inputs, input services and capital goods for 2017-18 and 2018-19.
CBIC further said it is expected that with the simplifications in the two forms and the extension of deadlines, “all the GST taxpayers would be able to file their annual returns along with reconciliation statement in time”.
Various representations regarding challenges faced by taxpayers in filing of GSTR-9 and GSTR-9C were received on which by the government has “acted in a very responsive manner”, the CBIC statement added.
The bank accounts need to be pre-validated and linked to the taxpayers’ permanent account number (PAN) from this assessment year 2019-20.
Direct credit to bank accounts of taxpayers is the only way the income tax department credits tax refunds.
Filed your income tax return (ITR) for the assessment year (AY) 2019-20 on time but yet not receive your refund? Don’t worry. You may just have furnished incorrect bank details. Of course, there may be other reasons for the delay, though this is the most prominent.
Earlier, tax refund was issued either in the form of a cheque or directly credited to bank accounts. However, direct credit to bank accounts of taxpayers is the only one mode through which the income tax department credits tax refunds. These accounts need to be pre-validated and linked to the taxpayers’ permanent account number (PAN) from this assessment year.
Taxpayers are entitled to claim a tax refund if, during the year, excess tax has been deducted from your income. This may happen if there are multiple incomes. But, you have to apply for a refund while filing your ITR for a particular financial year.
Track the status
You can check the status of your refund. A few years ago, to find the status of a tax refund one had to approach the assessing officer. But now, you can do so in minutes. After filing returns, a taxpayer will need to wait utmost for a few months to receive the refund.
You can visit these websites to check their tax refund status: www.incometaxindia.gov.in or www.tin-nsdl.com. Go to the “Status of Tax Refunds” tab, give your PAN number and the assessment year for which you wish to track the status of refund. A message will pop up, stating the mode of payment, a reference number, status and the date of refund. Of course, these will happen only if the refund has been processed.
However, if there is any problem due to which tax refund not received, there would be a suitable message. For e.g., if the message is “refund unpaid,” it could be due to the incorrect bank account details (account number or IFS Code) you may have submitted to the income tax department. Verify the bank account details submitted earlier.
You need to provide information on all the savings and current accounts held at any time in India during the previous year, according to income tax rules. Details of accounts that have been inoperative for at least three years or more are not required.
The taxpayer is supposed to provide one bank account in which she/he wants the tax refund credited. You have to provide this detail even if there is no refund. Bank details include the name of the bank, account number, and the 11-digit IFS Code or details of the international bank account number (IBAN) in case you have a foreign bank account. Not providing any bank account details will result in refunds not getting credited.
Are you wondering why you have not received your income tax refund yet despite having filed your income tax return (ITR) within the due date for assessment year (AY) 2019-20? There could be various reasons for the same. However, a common reason could be furnishing incorrect bank account details in the ITR form.
While tax refund was earlier issued either in the form of cheque or direct credit to bank accounts, the income tax department now credits tax refunds only in the form of direct credit in the bank accounts of taxpayers. Moreover, from this AY, these accounts need to be pre-validated and linked to the taxpayers’ permanent account number (PAN).
You are eligible to claim a refund if excess income tax has been deducted from your income during the year. This could happen in cases of multiple incomes or where tax is deducted at source (TDS). The income tax department does refund this excess tax paid, but you have to apply for it when filing your ITR for the relevant financial year.
Track the status
In case you have not received your refund yet, you first need to check the status of your refund. “About five to six years ago, one had to approach the assessing officer to find out the status of refunds. Now one can check it online within minutes,” said Amit Maheshwari, partner, Ashok Maheshwary and Associates LLP, a chartered accountancy firm. Except in few cases, now most people get their refunds in a few months of filing returns, added Maheshwari.
You can track the status of your refund on www.incometaxindia.gov.in or www.tin-nsdl.com. Click on “Status of Tax Refunds” tab, enter your PAN and the AY for which you want to track the refund. If the refund has been processed, a message will pop up, stating the mode of payment, a reference number, status and date of refund.
However, if there is an issue because of which refund has not been issued or declined, the message will say so. For instance, if the message states “refund unpaid”, it could be because the bank account details (account number or IFS Code) that you have submitted to the income tax department are wrong. In that case, check your bank account details you have mentioned in your ITR.
Bank account information
According to income tax rules, you are supposed to provide details of all the savings and current accounts held by you at any time in India during the previous year, while filing your returns. It is not mandatory to provide details of dormant accounts which have not been operational for more than three years. However, “if the income from all the bank accounts has been duly included though the details of the account itself may have been omitted, no penalty may be leviable in such cases,” said Maheshwari.
If you have more than one bank account, you are required to indicate the account in which you would like to get your refund credited, irrespective of whether you have a refund or not. Bank details include the name of the bank, account number, and the 11-digit IFS Code of the bank or details of international bank account number (IBAN) in case you have a foreign bank account.
Taxpayers who filed returns for AY2019-20 were also required to ensure that the bank account chosen for the refund is pre-validated with the e-filing account and linked with their PAN.
Failure to provide any of the above mentioned details may result in the refund not getting credited.
Making correction
If you find you have made a mistake in providing your bank account details, you have the option to update it, before placing a request for re-issue of refunds.
Remember that you can update your bank account details only in case where your return has been processed and your refund was failed or not credited in your bank account because of an issue with your bank account details.
In such a case, you need to modify your account details and place a request for reissue of refund. It can be done online by logging into the e-filing portal, www.incometaxindiaefiling.gov.in, with your user ID and password. Next, go to “My Account” and then click on “Refund re-issue request”. Follow the steps and enter the new bank account number or make a correction in the already mentioned bank details and submit the request.
Before doing so, make sure this account is linked with your PAN and is pre-validated. In order to link your bank account with PAN, you need to visit your bank’s branch with a copy of PAN. It is a simple process and does not take much time. Once you link your bank account with PAN, pre-validate the bank account through the income tax e-filing account. Log on to e-filing accounts, go to “profile setting” and choose which bank you want to pre-validate. You will need to provide information like bank name, bank account number, IFS Code, mobile and email ID to validate your bank account.
Once you update the bank account and place a request for reissue of refunds, it will most likely get credited to your account in a few days.
The income tax department issues notices when it has doubts about income or expenses declared by the taxpayer. Unless you have misreported your income or assets or made wrong claims, you need not worry. Here is a rundown on when you may get a notice.
What happens after you file your return?
Once you file your income tax return (ITR), it is processed by the income tax department. The department first examines the return of income for its correctness, a process called assessment. At first, a preliminary assessment under Section 143(1) of the Income Tax Act, 1961, is done, wherein the department checks for arithmetical error, incorrect claim and so on. The department has to complete the assessment under Section 143(1) within a year from the end of the fiscal in which the return of income is filed. At this stage, no detailed scrutiny of the return of income of a taxpayer is carried out.
What are the most common tax notices?
Based on the preliminary assessment, routine notices are sent regarding mistakes you might have made while filing the ITR. Often you don’t have to respond to the notices: mostly, it’s intimation that the ITR has been processed. If the department has made any adjustment in return that you don’t agree with, you can respond within 30 days. If the department doesn’t receive a response, it will consider the ITR as acceptable. Notices under Section 143(1) for errors and omissions are the most common, but taxpayers may get notices for not disclosing certain income or due to adjustment of pending tax dues against refund.
What’s the reason behind this year’s scrutiny notices?
In the first phase, about 58,000 taxpayers, who filed their ITR for FY18, were served scrutiny notices. In the last few years, there has been a spike in the declaration of foreign incomes and assets. This could be a reason why more scrutiny notices have been issued in cases where tax filers have declared foreign assets and incomes.
When do you get a tax notice for scrutiny?
Scrutiny is of two types—limited and detailed. If the department needs more information, it sends limited scrutiny notices. Detailed scrutiny notices are sent to check the correctness of claims and deductions made in the ITR. Notices are sent within six months from the end of the fiscal in which the return is filed. A case can be opened afresh within six years from the end of the assessment year. If the return included foreign income and assets, notices can be issued up to 16 years from the end of the relevant year.
How should you reply to a scrutiny notice?
Under the “e-proceeding” facility, tax officers have to take recourse to electronic communication for all scrutiny notices. For each tax notice, a particular response procedure has to be followed. Once you get a notice, access your income tax account under “My Account”, click on “My Pending Actions” tab or on “Worklist” and go to “For your action” to see if any demands or arrears are pending. You must submit the information needed within the time mentioned in the notice. A delay can have a bearing on your refunds, if any.
Individual will be required to respond to the notice or order received through the registered account only.
The E-assessment Scheme 2019 aims to eliminate human interface, reduce corruption and bring in transparency.
The idea of faceless E-assessment was mooted in the Budget 2018 by the late Finance Minister, Arun Jaitley, who announced the proposal to introduce the new assessment scheme to replace the old assessment system of manual scrutiny and face-to-face interaction with tax authorities.
The new scheme, called the ‘E-assessment Scheme, 2019 (Scheme), was notified by CBDT on 12 September, 2019. It will be an online system, which will use artificial intelligence, machine learning and technology tools to randomly and automatically allocate cases for assessment within the Income Tax Department. It aims to eliminate human interface, reduce corruption and bring in transparency.
Salient features of the Scheme:
The Scheme will have dedicated E-assessment centres such as the National E-assessment Centre, Regional E-assessment Centre, assessment units, verification units, technical units and reviewer units with each centre and unit having a clearly defined role and process to follow.
# National E-assessment Centre (NEC): NEC will be a single point of contact for the taxpayer as well as for all units conducting assessment. NEC will interact with the taxpayer to obtain evidence, issue notices, receive information, issue draft assessment order, raise demand, etc, and also interact with all units for smooth conduct and completion of assessment proceedings. All communication between the NEC, the taxpayer and various units would be done online and would be digitally signed.
# Regional e-assessment Centre (REC): REC will ensure smooth conduct of E-assessment under the region of a Principal Chief Commissioner.
# Assessment units (AU): AU will perform the function of scrutinising tax returns, analysing submissions made and evidence submitted by the assessee and make requests, if any verification or technical assistance is required.
# Verification units (VU): VU will perform the function of making enquiry, cross verification, examination of records or witnesses and recording statements, as may be required for verification.
# Technical units (TU): TU will give advice on legal, accounting, forensic, information technology, valuation, transfer pricing, data analytics, management or other technical matter required for conducting assessments.
# Review units (RU): RU will review draft assessment order (DAO) to check if all material evidence, relevant points of fact and law, relevant tax case laws have been included in the DAO. It will also ensure the arithmetical accuracy of modifications proposed and perform other functions as may be required for review.
Procedure for assessment:
NEC will issue notice under section 143(2) online by uploading the digitally signed copy on the registered income tax account or by sending notice to the assessee’s registered email address or uploading the copy on a mobile app. A real time alert will be sent through SMS or the mobile app informing the same to the assessee
The assessee is required to respond within 15 days of receipt of notice.
On the issue of a notice, NEC will allocate the case to any AU through an automated allocation system. The AU will then identify issues, seek clarifications from the assessee and may request for verification or enquiry through VU or seek technical assistance through TU. Accordingly, NEC will initiate request to the respective units through an automated allocation system.
On receipt of all information, AU will prepare a DAO accepting the returned income or modifying the returned income or send the DAO to NEC for review. NEC will accordingly finalise the order or modify it or send the DAO to RU for review. Accordingly, it may send the DOA along with demand notice and penalty notice, where applicable, to the assessee or issue a showcause notice to the assessee.
In case of a showcause notice, the assessee will submit the response within the timeline specified in the notice. Considering the response, the NEC may either finalise the DAO or ask the AU to prepare a revised DAO.
On receipt of the revised DAO, the NEC will verify if any modification prejudicial to the taxpayer’s interest is proposed. Accordingly, the NEC will give an opportunity to the assessee to show cause as to why assessment should not be finalised as per the revised DAO; otherwise, NEC will finalise the assessment.
On completion of assessment, all records will be electronically transferred to the jurisdictional assessing officer (AO) only for imposition of penalty, recovery of demand, rectification of mistake, giving effect to appellate orders, submission of remand report or representation or for placing of any record before Commissioner (Appeals), Appellate Tribunal or Courts and for initiating prosecution or filing of complaint before the courts.
During the course of assessment proceedings, any unit may initiate penalty proceedings for non-compliance of any notice, direction or order and may recommend to the NEC to serve notice to the assessee.
Any appeal from the order of the NEC will be filed before the Commissioner (Appeals) having jurisdiction over the jurisdictional Assessing Officer.
During the assessment proceedings, no personal appearance will be allowed before the income-tax authority at NEC or any other units. In case personal hearing is required, to make oral submission or present the case, it shall be done only through video conferencing.
The E-assessment Scheme, 2019 is a welcome step towards standardisation and easing of assessment procedure. However, its success and ensuring that ease of doing business is achieved will depend on its careful implementation
The Central Board of Direct Taxes (CBDT) has decided to extend the deadline for filing of ITRs and Tax Audits Reports by a month. Given the relentless demands by Chartered Accountants (CAs) and tax consultants, the CBDT has given a breather till October 31. It will also provide some respite to smaller companies too, who are struggling with GST filings.
Last night, the CBDT tweeted: “On consideration of representations recd from across the country, CBDT has decided to extend the due date for filing of ITRs & Tax Audit Reports from 30th Sep, 2019 to 31st of Oct, 2019 in respect of persons whose accounts are required to be audited. Formal notification will follow”.
This category of ITR is to be filed by those entities that are assessed under section 44AB of the Income Tax Act such as companies, partnership firms, proprietorship among others and their accounts are to be audited before filing.
The new deadline is also required because the CBDT has been intermittently changing the background software required for filing the ITRs.
There was a change in the ITR 6 software utility. Since all tax-filing is now software-driven, the CBDT will require some time to rework the filing process due to the changes in the software.
The old belief that there would be loss in revenue of the Government, if there is a delay in filing ITRs and Tax Audit Reports is wrong as a considerable share of revenue has already got collected due to Tax Deducted at Source and Advance Tax payments.
Filing ITRs and Tax Audit Reports is primarily an administrative exercise to inform the Income Tax Department about the payable tax. By extending the deadline, there would be no revenue loss to the Government. It will give some relief to the CAs fraternity and smaller companies who are struggling with various tax compliances, he said.
Most of us collate all information relating to our annual income, investments and tax deducted at source (TDS) before proceeding to file our income tax returns. However, the income tax filing process is a fairly comprehensive exercise. We might miss disclosing an income due to oversight, or claim an exemption or deduction that is not due. What are the options available to us if we make a mistake while filing returns?
We may make an error due to insufficient information or mis-match between Form 16 / Form 16 A and Form 26 AS or any other reason. Errors may also occur in our calculation. The income tax law allows us to file a revised return, correcting the omission or mistake made by us in the original return.
Filing a revised return
You can file a revised return at any time before the end of the assessment year, or before completion of the assessment, whichever is earlier.
For example, for the AY 2019-20, you can file a revised return till 31 March 2020. However, if your assessment is concluded before that date, you cannot file a revised return after completion of your assessment. An income-tax assessment is made through a notice issued by the assessing officer where your income and taxes are determined through assessment proceedings. In some situations this assessment may be completed before the end of the assessment year. If this is the case, you can no longer revise your return.
The revised return has to be filed in the same manner as an original return. While filing, a taxpayer has to choose the option: ‘Revised u/s 139(5)’. A taxpayer has to quote the acknowledgement number and date of filing of the original return while filing the revised return. The revised return substitutes the original return.
You may have filed an original return within the due date, or you may have filed after the due date. A return filed after the due date is called a ‘belated return’. You can revise both—a return filed within the due date or a belated one. The time limit for revising is the same for both as discussed above, i.e., before the end of the assessment year or before completion of assessment, whichever is earlier.
You can revise your income tax return any number of times. However, you are required to mention the acknowledgement number of the original return filed. You must note that ‘revised return’ is an opportunity for revision allowed by the income tax department. Hence, one must not misuse it and revise a return only in the case of a mistake or omission in the original return filed. If you are making errors with revisions, it’s in your interest to seek professional help for your return filing.
As is done with an original return, do remember to e-verify your ‘revised return’ as well. Your ‘revised return’ would not be valid if the same is not e-verified. You can e-verify the ‘revised return’ using an OTP (one-time password) based on Aadhaar or net banking or EVC (electronic verification code). You can also send a signed copy of the ITR V to the Centralized Processing Centre, Bengaluru, within 120 days of filing the ‘revised return’.
In a relief to taxpayers, the government on Thursday extended the due dates for filing GST annual returns for 2017-18 to December 31 and for the financial year 2018-19, to March 31 next year.
