Due date for ITR filing now just hours away, no indication of extension

The clock is all set to stop for filing Income Tax Returns at 11.59 pm on Wednesday, July 31 as there is no indication from the Income Tax Department regarding extension of dates.

July 31 is the last date for individuals and firms whose accounts need not required to be audited. The return filing made available from April 1 and “over 5 crore ITRs have been filed till July 26, marking an increase of over 8.5 per cent more compared to the same period last year,” the e filing portal said. Further, the number of ITRs filed per day has exceeded over 25 lakh since July 24 and is expected to rise further as the due date approaches.

“The 5 crores milestone, which is reached on 26 July this year, was achieved on 27 July last year,” the portal said. It also highlighted that out of 5.72 crore returns filed, 2.41 crore have already been processed and process of refunds, wherever required is initiated.

If one has filed return by July 31, she/he will have the opportunity to revise it by December 31 without penalty. However, if one misses the due date belated return can be filed by December 31 but with penalty between ₹1000 to 5000, subject to income threshold. In case of late filing, the assessee will not be able to carry forward losses to subsequent years.

Now, what should be last minute check list for an individual who is yet to file? CA Suresh Surana, Founder, RSM India offers following things to do:

- Check Form 26AS/ Annual Information Statement (AIS)/ Tax Information Summary (TIS): Review Form 26AS/ AIS/ TIS which contains details of tax deducted at source (TDS), advance tax payments, significant financial transactions, etc. and ensure the details mentioned therein match the financial records.

- Reconcile Income: Cross-check all sources of income (salary, interest, dividends, etc.) with the details provided in Form 16/16A and other income statements.

- Claim Deductions: Verify whether all eligible deductions under sections like 80C, 80D, 24(b) (for home loan interest), etc are claimed. Ensure the necessary documents to support these claims are maintained.

- Verify Bank Details: Confirm that your bank details for any potential refund are correct and up-to-date. Confirm Payment of Tax: Ensure that all taxes due, including advance tax and self-assessment tax, have been paid and are correctly reflected in your return.

“By thoroughly reviewing these aspects, one can minimize errors and ensure a smoother tax filing process,” he said.

Meanwhile, after filing returns, there may be possibility of some errors. Dhruv Chopra, Managing Partner, Dewan P. N. Chopra & Co listed one of these errors as some income not reported as appearing in AIS/26AS or if reported, there may be mismatch in amount offered to tax. Then, there could be excess deduction claimed as compared to Form 16. There may be any transaction of sale of any asset like shares, securities, immovable property, though appearing in AIS but not reported in ITR. Also, foreign tax credit is claimed, but Form 67 not filed.

CPC accordingly, send notices to tax payers for seeking clarifications, or  notice u/s 143(1)(a) for making Prima Facie Adjustment or even notice of Defective return u/s 139(9) etc. “On receipt of such notices, the tax payers should analyse the reason for the discrepancy mentioned in such notice and decide accordingly whether ITR needs to be revised or not? If required, ITR should be revised duly correcting the mistake. In case, there was no mistake, taxpayers should respond to the notices and explain their case with full facts and figures,” he said.