With due date for filing Income Tax Return coming to end on Sunday, Central Board of Direct Taxes has come out with frequently asked questions (FAQ) on 10 pressing issues such as self-assessment tax paid but not reflected in pre-filled detail or pre-validation of bank account for refund beside others.

Meanwhile, E-filing website (www.incometax.gov.in) shows around 4.53 crore returns filed as on July 29 which is almost 77 per cent of returns filed till due date last year.

In 2021, as on December 31, (extended due date for individuals) 5.89 crore returns had been filed, while till March 15, 2022 (extended due date for companies and other taxpayers required to file tax audit report) over 6.63 crore returns were filed.

On the issue related with ‘self-assessment tax paid but not reflecting in pre-filled details’, the FAQ says as per the normal process, it takes 3 to 4 days for different banks to provide information to the department. Post that, it gets pre-filled in the Tax-returns/Pre-filled JSON (JavaScript Object Notation) utility. Taxpayer may opt to wait for required time-period for auto reflecting details of the taxes paid in ITR. Alternatively, in such cases where taxpayer has already filled in additional details over and above the pre-filled details, such payment details can be entered manually after clicking on ‘Add Details’ link for Advance Tax and Self-Assessment Tax Payment details under Schedule “Taxes Paid”, the department said.

AIS updation

One of the contentious issues has been updation in Annual Information Statement (AIS). Here, FAQ has given the response under the head ‘Difference between income as shown in AIS and 26AS’. The FAQ says income reflected in AIS and 26AS are based on information received from different sources and tax compliance made by different stakeholders. These are made available to the Taxpayer for reference purpose.

“Taxpayer should check his book of records and provide information in the return as per the information available with him. If there is variation between the TDS/TCS or tax payments as provided in Form26AS and the TDS/TCS or tax payments provided in AIS, the Taxpayer may rely on the TDS/Tax payment information provided in 26AS for the purpose of filing of tax return and for computing Pre-paid Taxes,” FAQ said.

On the issue of opting in new tax regimes (from taking exemptions/deductions to foregoing them under section 115BAC of the Income Tax Act), FAQ says in case taxpayer is filing return in ITR 1 and 2 then filing of Form 10-IE is not required for claiming 115BAC. Taxpayers, who are filing ITR 3 or ITR 4 and opted new tax regime in AY 2021-22 by filing Form 10-IE, are not required to fill again. They just have to mention last year filed Form 10-IE Ack. No. and Date of filing for filing return. However, in case of opting out, the taxpayer is required to fill the form also mentioned last year acknowledgement number.

Fine for late filing

It needs to be noted that the assessees supposed to file their ITR by July 31, 2022 but failed to do so, shall be face a penalty. Jain explained fine up to ₹5,000 may be levied for late filing of returns up to December 31, plus the interest to be charged at the rate of 1 per cent per month. Also, taxpayers will not be eligible to carry forward their losses under any head (except under ‘Income from House Property’) in case of filing after the due date.

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