Important Keyword: Due date, Income Tax Filing, ITR Due Date.
Table of Contents
ITR Filing Last Date
The last date for filing Income Tax Returns (ITR) is a critical aspect that taxpayers must adhere to in order to avoid penalties, interest, and other consequences as per the provisions of Section 139 of the Income Tax Act.
What is Income Tax Return Due Date?
The deadline for filing taxes without incurring late fees or penalties is known as the due date.
The CBDT can extend the above due dates via notification. Albeit, the income tax return can also be filed after the due date. But, it will be considered as a belated return u/s 139 (4), and late filing interest or penalty will be applicable u/s 234A and 234F. Hence, it is always advisable to file ITR on or before the due date
Categories of Taxpayers for whom Tax Audit is mandatory
The following table explains the applicability of Tax Audit for taxpayers according to their earnings.
Taxpayer
Condition for Tax Audit
Business
Turnover is up to INR 1 Cr, Income is less than 6% or 8% of Turnover and Total Income exceeds the Basic Exemption Limit Turnover is between INR 1 Cr and INR 2 Cr and Income is less than 6% or 8% of Turnover Income is more than 6% or 8% of Turnover and the taxpayer does not opt for Presumptive Taxation Scheme under Sec 44ADSales or Turnover exceeds INR 10 Crore
Profession
Gross Receipts exceed INR 50 Lakhs Income from the profession is less than 50% of Gross Receipts and Total Income exceeds the Basic Exemption Limit The Income is more than 50% of Gross Receipts and the taxpayer does not opt for Presumptive Taxation Scheme under Sec 44ADA
Income Tax Return due date for previous financial years
The following table explains the due date to file income tax returns for previous financial years.
ITR filing last date for 2022 (AY 2022-23)
Category of Taxpayer
Original Due Date
Extended Due Date
Individuals not requiring Tax Audit
31st July 2022
NA
Individuals requiring tax Audit
31st October 2022
07th November 2022
ITD extended the due date to file ITR as the taxpayers faced technical issues on the original deadline.
ITR filing last date for 2021 (AY 2021-22)
Category of Taxpayer
Original Due Date
Extended Due Date
Individuals not requiring Tax Audit
31st July 2022
31st December 2021
Individuals requiring tax Audit
30th September 2021
15th February 2022
ITR filing last date for 2020 (AY 2020-21)
Category of Taxpayer
Original Due Date
Extended Due Date
Individuals not requiring Tax Audit
31st July 2022
10th January 2021
Individuals requiring tax Audit
30th September 2021
15th February 2021
ITR due date extension for AY 2021-22 & 2020-2021 was in response to the COVID-19 pandemic, which made it difficult for taxpayers to comply with the original deadline.
Due Date to file Belated Return
If an individual fails to file their income tax return by the due date, they have the option to file a belated return under Section 139(4) of the Income Tax Act. Starting from the financial year 2021-22 (assessment year 2022-23) onwards, taxpayers can file a belated return until the 31st of December of the relevant assessment year.
However, it’s important to note that filing a belated return attracts late filing fees under section 234F of the Income Tax Act.
To illustrate this, let’s consider an example: Mr. Jay forgot to file his ITR before the deadline of 31st July 2022. His total income for the financial year 2021-22 amounted to INR 4,50,000. Jay has the option to file his belated return until the 31st of December 2022. Suppose he files his return on 25th November 2022. In this case, his return will be considered as a belated return, and he will incur a late filing fee of INR 1,000, since his income is less than INR 5,00,000.
Due Date to file Revised Return
Starting from the financial year 2021-22 (assessment year 2022-23) onwards, taxpayers have the option to file a Revised Return under Section 139(5) of the Income Tax Act if they discover any mistake, omission, or incorrect statement in their original return. The revised return can be filed on or before the 31st of December of the relevant assessment year.
Additionally, since the financial year 2017-18 onwards, taxpayers can also revise a Belated Return if necessary.
Due date to file Updated Return
Under Section 139(8A) of the Income Tax Act, taxpayers have the provision to file an Updated ITR, also known as ITR-U. This option is available to individuals who have filed their Original ITR under Section 139(1), Revised ITR under Section 139(5), Belated ITR under Section 139(4), or have not filed an ITR at all. Taxpayers can file ITR-U within 24 months from the end of the relevant assessment year, provided they meet the conditions specified under this section.
Consequences of missing the due date
Filing your income tax return on time carries several benefits and avoids potential penalties or consequences:
Interest: Late filing incurs interest under section 234A at a rate of 1% per month or part thereof on the outstanding tax amount.
Late Fee: A penalty of up to INR 5,000 is levied under section 234F if the return is filed after the due date.
Loss Set-off: Timely filing allows you to carry forward losses from various sources like the stock market, mutual funds, or real estate, to offset against future income. Failing to file on time may jeopardize this benefit.
New Regime: Opting for the new tax regime requires filing the ITR on or before the due date.
Claiming Relief: Missing the due date can disqualify you from claiming relief under sections 89E or relief under sections 90/90A, 91.
Interest on Refund: Taxpayers are entitled to 0.5% interest under section 244A on the eligible refund amount. Filing before the due date ensures interest is calculated from April 1st, whereas late filing means interest is calculated from the date of filing to the refund date.
Avoiding Notices: Failure to file may result in receiving notices from the Income Tax Department (ITD), leading to unfavorable consequences.
By adhering to the deadline for filing your income tax return, you can avoid penalties, maintain eligibility for various benefits, and ensure compliance with tax regulations, thus mitigating any potential risks associated with non-compliance.
Important Keyword: Assessment Year, Due date, financial year
Table of Contents
Difference between Assessment Years (AY) and Financial Year (FY)
Understanding the distinction between Financial Year (FY) and Assessment Years (AY) is crucial for taxpayers, as these terms are integral to income tax filing, TDS return filing, and income tax payment. Let’s delve into the difference between Financial Year and Assessment Year:
Financial Year (FY): The Financial Year refers to the period in which you earn income. It runs from 1st April of a given year to 31st March of the following year. During this period, you receive income from various sources such as salary, business, interest, rent, and investments.
Assessment Years (AY): The Assessment Years, on the other hand, is the year immediately following the Financial Year in which you assess and file your income tax return based on the income earned during the Financial Year. It is the year in which your income is assessed, and you determine the tax liability based on the income earned in the preceding Financial Year.
To illustrate the difference, let’s consider an example:
Suppose the Financial Year is 2022-23, which begins on 1st April 2022 and ends on 31st March 2023. During this period, you earn income from various sources.
Now, the Assessment Years corresponding to the Financial Year 2022-23 would be 2023-24. This is the year in which you assess your income earned during the Financial Year 2022-23 and file your income tax return accordingly. You calculate your tax liability for the Assessment Year 2023-24 based on the income earned in the Financial Year 2022-23.
What is the Financial Year (FY)?
The Financial Year (FY) is the period that starts from 1st April and concludes on 31st March of the following calendar year. During this time, individuals earn income from various sources such as salary, investments, or business activities. This period is significant because it marks the duration within which financial transactions take place and income is generated. You’ll often find references to the Financial Year in documents like Form 16, Salary Pay slips, Loan repayment documents, etc. It’s a fundamental concept in financial planning and tax management for individuals and businesses alike.
What are Assessment Years (AY)?
The Assessment Years (AY) is a crucial term in the realm of income tax filing and payment. Unlike the Financial Year (FY), which marks the period in which income is earned, the Assessment Year follows immediately after the conclusion of the FY. In simpler terms, it’s the year in which taxpayers are required to file their Income Tax Returns (ITRs) based on their income earned during the previous Financial Year.
For instance, if the Financial Year runs from 1st April 2023 to 31st March 2024, then the corresponding Assessment Year would be 2024-2025. During the Assessment Year, individuals and entities submit their ITRs, declaring their income and paying any applicable taxes to the government.
Difference between the Assessment Year (AY) and Financial Year (FY)
Consider the case of Mr. Ajay, a recent graduate who commenced employment at a company on 7th July 2018 and remained employed until 31st March 2019.
For Mr. Ajay, the Financial Year (FY) denotes the period in which he earned income, spanning from 1st April 2018 to 31st March 2019. During this timeframe, Ajay received his salary and other earnings.
However, when it comes to his Income Tax Return (ITR) filing and assessing his tax obligations, Mr. Ajay will do so in the Assessment Year (AY) 2019-20. Despite earning income in the FY 2018-19, Ajay is required to file his ITR for the AY 2019-20, which immediately follows the conclusion of the FY.
Nil ITR (Income Tax Return) refers to a return filed when the total income earned during a financial year falls below the basic exemption limit, which is currently set at INR 2,50,000. According to the Income Tax Act, individuals earning less than INR 2,50,000 are not required to file an ITR. However, if a return is filed in such cases, it will be considered as a Nil return.
The due date to file a Nil Income Tax Return is the same as that for regular returns, which is on or before 31st July of the Assessment Year. Filing a Nil return after the due date will be considered as a belated return, although no late filing fees will be levied.
It’s worth noting that due to the Covid-19 pandemic, the deadline to file ITR for the Financial Year 2019-20 (Assessment Year 2020-21) was extended to 31st December 2020, provided tax audit was not applicable.
Nil returns can be filed using the following methods:
Income Tax e-Filing Account: Log in to your account on the Income Tax e-filing website, prepare the return, and file it online.
Prepare ITR Offline Using Utility: Offline preparation of the return can be done using Income Tax Utility, followed by filing the return through your e-filing website login.
File Through a DIY Platform: Utilize an Electronic Return Intermediary (ERI) platform like Quicko to file your Income Tax Return (ITR).
What are the benefits of filing a Nil Tax Return?
Even if your income falls below the basic exemption limit, filing a Nil Income Tax Return can offer several benefits:
Proof of Income: Filing a Nil ITR serves as evidence of your income for a specific financial year. Financial institutions often require this document when you apply for loans. Additionally, it can be useful when applying for visas to foreign countries.
Claim Refund of TDS: If any Tax Deducted at Source (TDS) is deducted on your interest income, filing a Nil return enables you to claim a refund for the deducted TDS amount.
Avoid Notices from IT Department: Filing a tax return, even if it’s Nil, can help you avoid receiving notices from the Income Tax Department. The department may issue notices to non-filers, so filing a Nil return proactively prevents such correspondence.
Carry Forward Losses: If you incurred losses in business during the financial year, filing an ITR, even with nil income, is necessary to carry forward those losses to the next financial year. This practice ensures that you can offset these losses against future profits, reducing your tax liability in subsequent years. Therefore, filing a Nil return is a prudent financial decision.
Important Keyword: Due date, e-Verify ITR, File ITR, Income Tax Rates, ITR Documents, ITR Form, ITR Utility, Resident Status, Slab Rates.
Table of Contents
Income Tax: Rates, Due Date and Return Filing in India
Income tax is indeed a direct tax levied by the government on the income earned by individuals, businesses, and other entities during a financial year. In India, the Income Tax Act, 1961, along with the Income Tax Rules, 1962, governs the administration, assessment, and collection of income tax. The tax is imposed on various types of income, including salaries, business profits, capital gains, rental income, and other sources, depending on the nature of the taxpayer’s income and their tax status.
Who should file Income Tax Return (ITR)?
Filing an income tax return (ITR) is mandatory for taxpayers whose income exceeds the basic exemption limit specified by the Income Tax Act. For individuals and Hindu Undivided Families (HUFs) below the age of 60 years, the basic exemption limit for the assessment year 2019-20 was INR 2.5 lakh.
However, even if a taxpayer’s income is below the basic exemption limit, they can choose to file a NIL return. This means they are voluntarily filing a return to declare that their income is below the taxable threshold. It can be beneficial for various purposes, such as establishing a financial record, applying for loans or visas, claiming tax refunds, or fulfilling statutory requirements.
What are the Due Dates to file Income Tax Return (ITR)?
Category
Due Date
Individuals to whom audit is not applicable
31st July of the Assessment Year
Companies
30th September of the Assessment Year
Individuals to whom audit is applicable
30th September of the Assessment Year
Individuals/ HUF who are partners in a firm and firm’s accounts are subject to audit
30th September of the Assessment Year
Due Date for Filing ITR for AY 2021-22
What are the Documents required to file ITR?
The documents you listed are indeed essential for filing an income tax return. Let’s break it down:
PAN (Permanent Account Number): This is a unique identification number assigned to taxpayers in India. It’s essential for various financial transactions, including filing taxes.
Aadhar Number: Aadhar serves as a proof of identity and address and has been linked with PAN for income tax purposes.
Form 26AS: Form 26AS is a consolidated tax statement that contains details of tax deducted on behalf of the taxpayer and tax collected during the financial year.
Bank Account Details: This includes details of the bank accounts in which the taxpayer wants to receive any refunds.
Challan of Advance Tax or Self-assessment Tax: If the taxpayer has paid any advance tax or self-assessment tax during the year, they need to provide details of the challan.
Details of the Original Return (if filing a revised return): If the taxpayer is filing a revised return, they need details of the original return filed earlier.
Indeed, the specific documents required may vary based on individual circumstances and the type of income tax return form being filed. For instance, additional documents like salary slips, rent receipts, investment proofs, etc., might be required depending on the sources of income and deductions claimed.
Which ITR Form to File?
choosing the correct ITR form is crucial for accurate and efficient tax filing. Let’s briefly go over the common ITR forms for individual taxpayers:
ITR 1 (Sahaj): This form is for resident individuals having income from salaries, one house property, other sources (excluding winnings from lottery and income from race horses), and whose total income does not exceed INR 50 lakh.
ITR 4 (Sugam): This form is for individuals, HUFs, and firms (other than LLP) having presumptive income from business and profession. It’s also applicable for individuals who have opted for the presumptive taxation scheme under sections 44AD, 44ADA, and 44AE.
It’s important to note that other ITR forms cater to specific types of income and taxpayers:
ITR 2: For individuals and HUFs not having income from profits and gains of business or profession.
ITR 3: For individuals and HUFs having income from profits and gains of business or profession.
ITR 5: For persons other than individual, HUF, company, and person filing Form ITR-7.
ITR 6: For companies other than companies claiming exemption under section 11.
ITR 7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).
ITR-1 (SAHAJ)
The most basic ITR form for individuals having income up to Rs. 50,00,000 from salary/pension, one house property, and interest.
ITR-2
For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and partner’s income from the partnership firm.
ITR-3
For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and income from proprietary business or profession.
ITR-4
For individuals/HUF/Partnership firms having income from presumptive business or profession.
What are the Income Tax Rates for AY 2019-20?
When it comes to paying taxes on our income, understanding the applicable rates is essential. Each year, during the Union Budget presentation by the Finance Minister, the Income Tax Slab Rates are announced for various categories of taxpayers. For individuals and Hindu Undivided Families (HUFs) below the age of 60 years, these rates determine how much tax they need to pay based on their income levels.
Taxable Income
Tax Rate
Up to INR 2,50,000
Nil
INR 2,50,000 to INR 5,00,000
5%
INR 5,00,000 to INR 10,00,000
20%
Above INR 10,00,000
30%
Let’s delve into the current Income Tax Slab Rates for this particular category of taxpayers:
Income up to INR 2.5 lakh: No tax (Basic Exemption Limit)
Income from INR 2,50,001 to INR 5,00,000: 5% tax
Income from INR 5,00,001 to INR 10,00,000: 20% tax
Income above INR 10,00,000: 30% tax
Additionally, a cess of 4% is levied on the total tax payable by all taxpayers to support government initiatives.
How to file ITR?
To file your Income Tax Return (ITR), you have several convenient options at your disposal:
Income Tax e-filing Website: You can directly access the Income Tax e-filing website, where you’ll find user-friendly tools to file your return electronically. Simply follow the step-by-step instructions provided on the website.
Income Tax Account: If you have an income tax account, you can log in and file your return seamlessly. Ensure you have all the necessary documents and details ready before initiating the process.
IT Utilities: The Income Tax Department provides various utilities to assist taxpayers in filing their returns accurately. These utilities are designed to simplify the process and help you complete your return efficiently.
ERI (e-Return Intermediary): Government-approved intermediaries like Finodha.in offer services to facilitate e-filing of tax returns. These platforms provide additional support and guidance throughout the filing process, ensuring compliance with tax regulations.
Choose the method that best suits your preferences and requirements, ensuring timely and accurate filing of your Income Tax Return.
e-File ITR using Income Tax e-Filing Website
To file your Income Tax Return (ITR) through the income tax e-filing website, you’ll need to access your e-Filing account. Here’s a step-by-step guide to help you through the process:
Login: Visit the e-Filing portal and enter your user ID (PAN), password, and captcha code. Then, click on ‘Login’ to access your account.
Navigate to e-File: Once logged in, go to the ‘e-File’ section and select ‘Income Tax Return’.
Select ITR Form and Assessment Year: Choose the appropriate ITR Form and Assessment Year based on your income sources and the relevant financial year.
Prepare Your ITR: Fill in all the required details in the selected ITR Form. Provide accurate information to ensure the correctness of your return.
Pay Self-Assessment Tax or Claim Refund: If you have any outstanding tax dues, pay them as self-assessment tax. Alternatively, if you’ve paid excess tax during the financial year, claim a tax refund.
Submit Your ITR: After filling in all the details and verifying the information, click on ‘Submit’ to file your ITR electronically.
If you prefer to prepare your ITR offline, you can use Income Tax Utilities provided by the department. Here’s how to do it:
Download Utilities: Visit incometaxindiaefiling.gov.in and click on ‘Offline Utilities’ under the Download section. Then, navigate to ‘Income Tax Return Preparation Utilities’ and select the assessment year.
Download ITR Utility: Choose the required ITR Form and download the corresponding utility for that form.
Extract and Prepare ITR: Extract the files from the downloaded zip folder and use the utility to prepare your ITR offline.
Upload Utility: Once your ITR is ready offline, upload the utility to your Income Tax e-filing account for submission.
By following these steps, you can either e-file your ITR directly through the income tax e-filing website or prepare it offline using Income Tax Utilities and then upload it to your e-filing account.
What is ITR e-Verification?
Completing the ITR filing process involves e-verifying your return. Once you file your ITR, you’ll receive an ITR-V, also known as the Income Tax Return Verification Form, on your registered email ID from the income tax department.
Here are the methods you can use to e-verify your ITR:
Aadhaar OTP: Use the Aadhaar OTP option for verification. You’ll receive a One-Time Password (OTP) on your registered mobile number linked with Aadhaar. Enter this OTP to verify your return.
Bank ATM: Visit an ATM of your bank and select the option for e-verification of income tax return. Follow the instructions on the screen to complete the process.
Net Banking Option: Log in to your bank’s net banking portal and look for the option to e-verify your income tax return. Follow the steps provided to complete the verification.
Bank Account Option: You can e-verify your return using your bank account details. The income tax department verifies your return electronically based on the information provided.
Demat Account Option: If you have a Demat account, you can use it to e-verify your ITR. Follow the instructions provided by the income tax department for e-verification using a Demat account.
Physically sending ITR-V: If you prefer the traditional method, you can download the ITR-V from your income tax account and send it physically to the income tax department’s CPC office within the specified time frame. Ensure that you send it via ordinary post or speed post only.
Important Keyword: Belated ITR, Due date, Income Tax Website, ITR Utility, Sec 139(4).
Table of Contents
Section 139(4): Belated Return under Income Tax
Filing a Return of Income is the formal process through which taxpayers declare their total income and tax liability information. Compliance with tax obligations is bound by specific deadlines. Typically, the due date for filing an Income Tax return is the 31st of July of the relevant Assessment year. However, recognizing that taxpayers may miss this deadline, a provision for filing a belated return exists.
A belated return, as the name implies, refers to a return submitted after the deadline specified in the Income Tax Act. This option grants taxpayers a second chance to fulfill their tax obligations, albeit after the initial due date has passed.
What is a Belated Return?
Any individual who has failed to furnish a return within the specified time under section 139(1) of the Income Tax Act, has the opportunity to file a return for any previous year within certain limits. This can be done either before three months prior to the end of the relevant assessment year (which means by 31st December 2023 for the assessment year 2023-24), or before the completion of the assessment, whichever comes first.
For instance, consider the case of Surbhi who forgot to file her Income Tax Return for the financial year 2022-23 (assessment year 2023-24) by the deadline of 31st July 2023. She still has the option to file her return by 31st December 2023. However, it’s important to note that her return will be treated as a late return, filed under section 139(4) of the Income Tax Act, rather than under section 139(1).
Who can file a Belated Return u/s 139(4)?
From the financial year 2019-20 onwards, income tax return filing is compulsory under the following circumstances:
If an individual’s total income exceeds INR 2,50,000.
If the amount deposited in a current account held with a bank or cooperative bank surpasses INR 1 crore in a financial year.
Furthermore, individuals who are required to file their income tax return but have missed the original filing deadline still have the option to submit a belated return. To do so, taxpayers must select section 139(4) from the e-filing portal.
Consequences of late filing of ITR
Filing a Belated Return incurs the following consequences:
Interest Penalty under section 234A: The taxpayer is required to pay simple interest at a rate of 1% per month or part of a month for the delay in filing the Income Tax Return (ITR). This interest is calculated from the day immediately following the due date until the actual date of filing. For instance, if the due date is 31st July 2022 and the ITR is filed on 15th October 2022, the interest under section 234A will be applicable for 3 months.
Late Filing Fees under section 234F: The maximum penalty for late filing of a return is INR 5,000. However, the penalty amount varies based on the total taxable income:
If the total taxable income exceeds INR 5 lakh, the penalty is INR 5,000.
If the total income is less than or equal to INR 5 lakh, the penalty is INR 1,000.
If the total income is less than INR 2,50,000, no penalty is levied.
Limitations of filing u/s 139(4)
When filing a belated return, certain implications should be noted:
Losses Carried Forward: Losses under the heads of capital gains and Business and Profession cannot be carried forward if filing a belated return. However, losses from the head house property and unabsorbed depreciation can be carried forward even in case of a belated return.
Disallowed Deductions: Certain deductions are disallowed, including those under sections 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE.
Interest on Refund: The taxpayer may lose interest on the refund under section 244A, if eligible, if the delay occurs due to the late filing of the taxpayer.
Change of Tax Regime: Changing the tax regime is not possible while filing a return under section 139(4).
Notice from Income Tax Department: If a person fails to file their belated return, the income tax department may send them a notice to file the return.
