Daily News

Deadline To File Income Tax Returns Extended To December 31

The government announced on Thursday, that the deadline for filing income tax returns has been extended to December 31, due to the coronavirus epidemic and ongoing technical issues with the government’s website. Normally due by the end of July, the deadline was earlier postponed from May to September 30, owing to the coronavirus epidemic.

filing income tax return deadline

“In light of the difficulties reported by taxpayers and other stakeholders in filing Income Tax Returns. And The rise of various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961(the “Act”). The Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for filing Income Tax Returns. As well as, various reports of audit for the Assessment Year 2021-22,” according to the Finance Ministry.

Deadlines and schedules for filing Income Tax Return

“The due period for filing Income Returns for the Assessment Year 2021-22; which was 31st July 2021 under sub-section (1) of section 139 of the Act. As extended to 30th September 2021 by Circular No.9/2021 dated 20.05.2021. It is thus further now 31st December 2021”.

From November 30, 2021, the CBDT has extended the deadline for filing ITRs for businesses until February 15, 2022.

income tax return filing date extended

The deadlines for filing the tax audit report and the transfer price certificate got extended to January 15, 2022, and January 31, 2022; from the previous deadlines of October 31 and November 30 respectively. The deadline for filing a late or revised income tax return is also extended by two months, i.e., to March 31, 2022.

Concerning the tax portal’s difficulties, the finance ministry stated on Wednesday that it is working with Infosys to provide a smooth filing experience for taxpayers.

The CBDT released the paperwork for filing Income Tax Returns for the 2020-21 fiscal year on April 1. Under section 115BAC of the I-T Act, the government had given taxpayers the option of choosing a new tax regime for the fiscal year 2020-21. For more such updates, keep watching this space!

Daily News

Top mistakes to avoid while filing Income Tax Return (ITR) for AY 2021-22 this month

For the fiscal year 2021-22, all people with an annual income of more than Rs 2.5 lakh and who are under the age of 60 must file an ITR. Senior individuals with an annual income of less than Rs 3 lakh are not required to file an Income Tax Return. ITR filing is not necessary for senior persons over the age of 75; whose main source of income is pension and interest on deposits.

The deadline to file your income tax return for FY 2020-21 (AY 2021-22) is September 30. Despite the fact that the ITR filing deadline is set to be extended, taxpayers should make every effort to file their taxes this month. Tax filing is a yearly obligation, and it is usually preferable to do it as soon as possible.

income tax return

Here are some common mistakes that taxpayers should avoid while filing their ITR:

01

Interest income from a savings account is not reported

Many people overlook the interest earned on their savings accounts. However, according to income tax laws, you must report your interest income from savings account deposits as well.
Individuals are excluded from paying income tax on the interest generated on savings accounts up to Rs 10,000 under Section 80 TTA of the Income Tax Act. Under Section 80TTB, the exemption ceiling for older citizens is Rs 50,000.
02

Not including the interest income earned from Fixed Deposits

Interest income from fixed deposit accounts is taxable under the Income Tax Act. As a result, you must report this income on your ITR.
03

Filing incorrect ITR form

There are numerous ITR forms for different types of income. As a result, you must use the ITR form that corresponds to your revenue sources.
04

Ignoring the importance of e-verification

It is required to e-verify ITRs within 120 days of filing returns. The processing of your ITR will be hampered if you do not e-verify. E-verification is simple to complete using your net banking account, Aadhaar OTP, and other methods.
05

Failure to compare the new and old tax regimes in order to maximize tax savings

This year, you can file your ITR under both the new and old tax regimes. You'll obtain deductions and exemptions under the previous tax system, but not under the new one, which has a low tax rate and no deductions or exemptions. To maximize your tax savings, choose the better of the two options.
06

Ignoring the interest earned on money given to a spouse or child as a gift

Interest gained on the money you may have gifted to your spouse or child must be included in your income. When the money given to you is invested, you will earn interest.
07

Failure to record dividend income

Dividend income from stocks and mutual funds was previously tax-free. Individual dividends from equities and mutual funds will be taxed at the slab rate beginning in FY 2020-21. As a result, you should report dividend income in your ITR this year and pay the appropriate tax.
08

Not matching Income and TDS with the details filled on Form 26AS

Form 26AS is an annual tax statement that lists all of your earnings for the previous fiscal year. As a result, the information you supply on your ITR should match the information on Form 26As. If the income stated on your ITR does not match the income shown on Form 26AS, you may receive an Income Tax Department notification or a reduced refund.

For more such updates, keep watching this space!

Budgeting Daily News Education

Income Tax Department functionality to identify ‘specified persons on whom higher TDS will be levied on.

Now there will be a special provision for deduction of tax at source for non-filers of Income-tax returns. You must be thinking about how all this will work and how can we identify who is the specified person on whom higher tax will be levied. We will learn about certain sections related to the deduction of TDS and TCS. The provision will commence from 1st July 2021.

What are sections 206AB and 206CCA?

206AB– This section implies TDS( Tax deduction at source ) on the payable amount. It is for the specified persons who are not filing their income tax returns. The tax rate will be higher than specified in the act.

206CCA- Also, if according to section 206CCA, it allows Tax collection at source (TCS) on amounts received by the specified person. It will also be for the people who are not filing income tax returns and even don’t furnish their pan card.

Section 206AB will be applicable along with 206AA.

Income tax return

Where it is applicable and where not?

Exemptions – It isn’t applicable on certain conditions.

  • In case of premature withdrawal of EPF (under section 192A)
  • Income earned through any lottery (under section 194B)
  • Investment income from securitization trust (under section 194LBC)
  • TDS on cash withdrawals
  • Salary (under section 192)
  • Earning from horse races

Applicable on- It applies to the specified persons who satisfy all three conditions given below.

  • Persons who have not to file income tax returns for two consecutive years
  • A person who has crossed the time limit of filing returns under section 139(1).
  • TDS +TCS deducted is greater and equal to 50,000 in each of 2 years
  • It will be deducted on TDS or TCS whichever rate is higher.
TDS and TCS differences

Who are not eligible as a 'specified person'?

  • All those who file their income tax return from time to time.
  • A person is not a specified person if He/She is a non-resident in India. Also, the people who do not have a permanent establishment in India.

At what Rate?

If the person is specified and has to pay TDS on higher rates, the rates will be higher of

  • Twice the rate specified in the relevant provision

Or

  • At the rate of 5%

Above two whichever will calculate the higher amount, shall be paid.

For more such updates, keep watching this space!