Providing a relaxation to the tax payer, the Central Board of Direct Taxes has extended the deadline for filing income tax return for the assessment year of 2022-23 till November 7, 2022. The decision was taken on Wednesday. It is to be noted that the last date to file ITR for FY23 was October 31.
The Central Board of Direct Taxes (CBDT) said in a notification that the ITR filing due date has been extended as it had last month extended the deadline for filing audit reports.
Providing a relaxation to the tax payer, the Central Board of Direct Taxes has extended the deadline for filing income tax return for the assessment year of 2022-23 till November 7, 2022. The decision was taken on Wednesday. It is to be noted that the last date to file ITR for FY23 was October 31.
CBDT extends the due date for furnishing Income Tax Return for AY 2022-23 to 7th November, 2022 for certain categories of assessees in consequence of extension of due dates for filing various reports of audit. Circular No. 20/2022 dated 26.10.2022 issued.
CBDT’s extension of due date for filing of Income Tax Return (ITR) for Assessment Year 2022-23 from 31/10/2022 to 07/11/2022 applies to the following assesses:
a) Companies
b) Persons subject to Tax Audit or Audit under any other law
c) Partner of Firm which is subject to Tax Audit
d) Other specified persons whose due date of filing the return of income is 31/10/2022.
Till now the time period to e-verify the ITR or send the ITR-V through post was 120 days from the date of the uploading of the ITR.
For the Financial Year ended March 31, 2022 (Asst Year 2022-23), even as 5.82 crore people filed their ITRs (Income Tax Returns), only around 4.02 crore of them were verified.
Thus, over 1.8 crore people did not verify their ITR filings as till July 31.
The Income Tax department had processed 3.01 crore verified ITRs till July 31, as per the website.
Status of Returns filed & e-verified
Verifying income tax returns are as important as filing them, since unverified ITRs are treated as invalid by the income tax department. Once the taxpayer verifies the ITR, the income tax department processes it, sends the income tax intimation and issues refunds, if applicable.
You need to verify your Income Tax Returns to complete the return filing process. Without verification within the stipulated time, an ITR is treated as invalid. e-Verification is the most convenient and instant way to verify your ITR,” said the income tax department on the e-filing website.
e-Verification of ITR: Last Date
Now, taxpayers have to electronically verify or e-verify their income tax returns (ITR) within 30 days of filing the return of income. Earlier the time limit was 120 days. In a notification, the Central Board of Direct Taxes (CBDT) said it has reduced the time limit for verification of income tax to 30 days from the date of transmitting or uploading the data of return of income electronically. This new rule will into effect from August 1, 2022, the CBDT said.
“It has been decided that in respect of any electronic transmission of return data on or after the date this Notification comes into effect, the time-limit for e-verification or submission of ITR-V shall now be 30 days from the date of transmitting/ uploading the data of return of income electronically,” the notification said.
If you still have not e-verified your ITR, you need to do so within a month of filing the returns. This means that if you filed the income tax return on July 31, you need to e-verify ITR by August 31 to get it processed. Otherwise it will be rendered invalid.
There are several ways to e-verify your ITR. These include Aadhaar-based OTP, bank and demat account, net banking, ATM or digital signature certificate.
How to e-Verify Your ITR Through Aadhaar-Based OTP.
Aadhaar-based OTP is one of the easiest methods to e-verify ITR. In this scenario, your mobile number must be linked to Aadhaar. On the e-verify page of the income tax portal, select the option that prompts you to use Aadhaar-based OTP to e-verify ITR.
A pop up will appear asking you to validate Aadhaar information, check that box. Now, click on ‘Generate Aadhaar OTP’. You will receive a six-digit OTP on your registered mobile number. Enter the OTP and submit. This OTP is valid for 15 minutes.
The Finance Ministry has recently notified the new Income Tax Return (ITR) forms for the assessment year (AY) 2022-23 to file a return of income earned in the financial year (FY) 2021-22.
So far, the Central Board of Direct Taxes (CBDT) notified the new ITR forms, from ITR Form 1 to ITR Form 7, which are available on the Income Tax website.
This year, almost all the ITR forms have been kept unchanged from the last year, except few small changes.
Remember, an assessment year (AY) is the year that immediately follows the financial year (FY) in which the income was earned.
Income of FY 2021-22 will be accessed in AY 2022-23.
All ITR forms will seek additional information with regard to overseas retirement benefits and interest accrual on provident fund deposits exceeding Rs 2.5 lakh a year.
Check out which ITR form is applicable to you and changes to consider.
ITR 1 form
It is for salaried individuals having a total income of up to Rs 50 lakh for the financial year 2021-22.
You can also file a return in ITR 1 if you earn income from other sources such as interest from bank deposits, house property and agriculture income up to Rs 5,000.
This time, the assessee will have to provide information about income from overseas retirement funds while calculating their net salary.
ITR 2 Form
If your salary income exceeds Rs 50 lakh, then use ITR-2.
Also, if you have income in the form of capital gains from more than one house property, or if you earn a foreign income, or own a foreign asset.
ITR 3 form
This form is for businessmen and professionals who do not earn a salaried income. If you are a partner of a firm, you should use ITR-3.
ITR 4 Form
ITR-4 can be used by both resident individuals, firms and HUFs (Hindu Undivided Family) who had income either from profession or business.
ITR 5 Form and ITR 6 Form
These two forms are for corporates and trusts. ITR-5 is for partnership firms, business trusts, investment funds and so on.
Whereas ITR-6 is for companies registered other than Section 11, respectively.
ITR 7 form
This form is for persons including companies that are required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.
CBDT has decided to further extend the due dates for filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22.
The Central Board of Direct Taxes, via Circular No. 01/2022 issued on 11th January 2021, has extended the timeline for filing of Income Tax Returns and various Reports of Audit for the Assessment Year 2021-22.
This has been done following the adverse impact of the 3rd wave of the COVID-19 pandemic and difficulties faced by taxpayers and professionals.
Announcement from CBDT earlier today on extension of timelines for filing of tax returns and certain audit reports to 15 March and 15 February is a major relief considering the challenges faced by both the taxpayers and their advisors due to newer variant of virus and the glitches in the online portal. Timing of the announcement in particular avoids anxiety for all concerned.
Here is the list of various ITR deadline for AY 2021-22 that have been extended
The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which was 30thSeptember 2021, in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, as extended to 31st October 2021 and 15th January 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th February, 2022;
The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which was 31stOctober, 2021, in the case of assessees referred in clause (aa) of Explanation 2 to sub-section (1) of section 139 of the Act, is hereby extended to 15th February, 2022;
The due date of furnishing of Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which was 31stOctober 2021, as extended to 30th November 2021 and 31st January 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th February, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31stOctober 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November 2021 and 15th February 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th March, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 30thNovember 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December 2021 and 28th February 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th March, 2022.
Clarification 1: It is clarified that this extension shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds one lakh rupees.
Clarification 2: For the purpose of Clarification 1, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021, Circular No.17/2021 and this Circular) provided in that Act, shall be deemed to be the advance tax.
The AIS captures information on almost all financial transactions done in the previous financial year. The idea is to give taxpayers a comprehensive statement on their transactions that they can refer to while filing their income tax returns
The income tax department (I-T dept) on Monday rolled out the new annual information statement (AIS) on the compliance portal. This annual statement provides a comprehensive view of information to a taxpayer and the facility to submit online feedback.
The new annual information statement (AIS) includes additional information linked to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information and other such transactions.
The income tax department has clarified that till the new annual information statement is validated and is completely operational, Form 26AS will continue to be available on the TRACES portal. The tax department also added that the reported information has been processed to remove duplicate information.
If the taxpayer feels that the information is incorrect, relates to another person/year, duplicate or such other a facility has been provided to submit online feedback. “The taxpayers are requested to view the information shown in annual information statement (AIS) and provide feedback if the information needs modification,” the Central Board of Direct Taxes (CBDT) said.
The new AIS can be accessed by clicking on the link ‘Annual Information Statement (AIS)’ under the ‘Services’ tab on the new Income tax e-filing portal (https://www.incometax.gov.in).
How AIS will be helpful?
AIS provides for a simplified taxpayer information summary (TIS) which shows the aggregated value for the taxpayer for the ease of filing returns.
If the taxpayer submits feedback on the annual information statement (AIS), the derived information in TIS will be automatically updated in real-time.
This derived information in taxpayer information summary (TIS) will be used for pre-filling of return which shall be implemented in a phased manner.
If the ITR has been filed but some information has not been included, the return may be revised to reflect the correct information as shown in TIS.
In case there is a variation, the taxpayer may rely on the information displayed on the TRACES portal for the purpose of filing of ITR.
In comparison to Form 26AS, AIS is a more comprehensive single reference document and can be modified by taxpayers if the information is incorrect.
Annual Information Statement (AIS) provides complete and detailed information related to interest, dividend, securities/ mutual funds transactions.
The tax filing due dates were extended by the CBDT in view of the difficulties being faced by taxpayers and other stakeholders in the electronic filing of these forms.
The Central Board of Direct Taxes (CBDT) has extended the due dates for electronic filing of various Forms under the Income-tax Act, 1961. Considering the difficulties reported by the taxpayers and other stakeholders in the electronic filing of certain Forms, CBDT has taken this step.
The Central Board of Direct Taxes (CBDT) has issued an order extending due dates for various compliance forms including the Quarterly statement in Form No. 15CC, Equalization Levy Statement in Form No.1, the Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D and the Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C.
(i) The Quarterly statement in Form No. 15CC to be furnished by an authorized dealer in respect of remittances made for the quarter ending on 30th June 2021 required to be furnished on or before 15th July 2021 under Rule 37BB of the Rules. as extended to 31° July 2021 vide Circular No 12 of 2021 dated 25.06.2021, may be filed on or before 31st August 2021.
(ii) The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30. June 2021. as extended to 31s1July, 2021 vide Circular No 12 of 2021 dated 25 06.2021. maybe filed on or before 310 August 2021;
(iii) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or before 15. June 2021 under Rule 12CB of the Rules, as extended to 151″ July 2021 vide Circular No.12 of 2021 dated 25.06 2021, maybe furnished on or before 15. September,2021;
(iv) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or before 30. June 2021 under Rule 12CB of the Rules, as extended to 3f” July 2021 vide Circular No.12 of 2021 dated 25.06.2021, maybe furnished on or before 30. September 2021.
Further, considering the non-availability of the utility for e-filing of certain Forms, the Board has extended the due dates for electronic filing of such Forms as (i) Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 300 June 2021, required to be furnished on or before 311July,2021 under Rule 2DB of the Rules, may be furnished on or before 30° September 2021, and (ii) Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30° June 2021, required to be furnished on or before 31st July 2021 as per Circular No 15 of 2020 dated 22.07.2020 may be furnished on or before 30° September 2021.
The Board has clarified that “the above said forms, e-filed, after the expiry of time limits provided as per Circular No. 2 of 2021 dated 25.06.2021 or as per the relevant provisions, till date will stand regularized accordingly.”
As per the new rules, a higher TDS will be imposed for those who have not filed Income Tax Return (ITR) for the last two years under certain conditions.
Till date, TDS was deducted only on the notified nature of payments. From 1st July,2021, businesses are required to deduct TDS on purchase of goods along with the current scope of TDS deduction applicable on notified nature of payment or expenditure. With the insertion of a new section ‘194Q’, the buyer is liable to deduct TDS on the goods purchases and remit it to the Government.
Here is the analysis of the new section ‘194Q’ with more details:
Section 194Q, applies to any buyer who is responsible for paying any sum to any resident seller for the purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year. The buyer, at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier, is required to deduct an amount equal to 0.1% of such sum exceeding fifty lakh rupees as income tax.
Finance Act, 2021 has inserted two new sections 206AB and 206CCA which mandates tax deduction (206AB) or tax collection (206CCA) at *a higher rate in the case of specified persons with respect to tax deductions (other than under sections 192, 192A, 194B, 194BB, 194LBC, and 194N) and tax collections.
* The higher rate is twice the prescribed rate or five percent whichever is higher.
“For these sections, specified person means a person who has not filed the return of income for two years in which tax is required to be deducted, for which the time limit of filing return under section 139(1) has expired, and his/her aggregate of tax deducted at source is Rs 50,000 or more in each of these two previous years.”
In nutshell, TDS of Rs 50,000 or more has been made for the past two years but no return of income has been filed, the rate of TDS will be double the specified rate or five percent, whichever is higher.
However, this provision will not be applicable for the transactions where the full amount of tax is required to be deducted, e.g. salary income, payment to a non-resident, lottery, etc. Also, the specified persons will not include a non-resident who does not have a permanent establishment in India.
Additionally, the Finance Act has introduced Section 194Q, which mandates that any person, being a buyer responsible for paying any sum to any seller (being a resident) for purchase of any goods (including capital goods), where the value of such goods, exceeds Rs 50 lakh in any previous year, will be required to pay TDS at the rate of 0.1 percent. In case of non-furnishing of PAN/Aadhaar by deductee, TDS will be charged at the usual rate or five percent whichever is higher.
These new TDS rules will impact the cash flows of non-filers of the income tax return.
To check such non-filers, CBDT has introduced a new tool “Compliance Check for Section 206AB & 206CCA” to ease the compliance burden of the tax deductor.
Under this tool, the deductor can feed the PAN of the deductee on the reporting portal and verify whether any deductee is compliant as per section 206AB of the Act and also whether the individual deductee has linked his/her Aadhar with PAN or not.
The response will be visible on the screen for a PAN search, which can be downloaded in PDF format. For bulk search, the response would be in the form of a downloaded file which can be kept for record.
What will be the result of not deducting/depositing TDS: –
As per section 40(ia) of the Income Tax Laws an amount has been paid to a resident on which TDS is to be deducted but not deducted and if deducted and the same is not deposited before the expiry of the time provided for furnish of ITR under section 139(1) then the 30% of the amount on which TDS is to be deducted and deposited will be added to the income of that person.
This provision will also be applicable to TDS falling under section 194Q of TDS so wherever the provisions of TDS are applicable, TDS must be deposited as the amount of purchase of goods is always very high and 30% of that is added back to the income of the Assessee then the tax on such amount will be very high. So be careful and deduct and deposit the TDS keeping in mind the provision of addition of this 30% to the income.
