#itr due date

[seocaonweb-blog]

Filing income tax returns (ITR) can be daunting, but with the right guidance, it becomes a breeze. At Caonweb, under the expert guidance of CA Sakshi Agarwal, we understand the nuances of Income Tax Return Filing. Here are some crucial things to keep in mind.

[taxationplanning]

Upcoming Income Tax Due Dates In October 2024

Income Tax Due DatesYou May Also LikeGet Free Updates[Join WhatsApp Group] Income Tax Due Dates There are several income tax due dates which are falling on October 30 and October 31, 2024. Please find due date relevant to you from the below list and take timely action. A live due date counter is set up so that you can easily find the time gap. 1730312940  days  hours  minutes  secondsuntil30…

[ca-divya]

Check What is ITR-3 form, who can file ITR-6, and how to file ITR-3 online. click here to know everything related to ITR-3 Form filing at CA Divya.

[jjtax]

Understanding Tax Refunds: JJ Tax made it easy

Handling tax refunds can seem overwhelming, but having a clear grasp of the process can make it straightforward. This newsletter aims to demystify tax refunds by covering key aspects: eligibility criteria, claiming procedures and tracking your refund status.

What is a Tax Refund?

A tax refund represents the amount returned to taxpayers who have overpaid their taxes over the fiscal year. This situation arises when the total tax deducted or paid exceeds the actual tax liability determined based on their income.

In India, tax payments are made through TDS (Tax Deducted at Source), advance tax, or self-assessment tax. When the total tax paid or deducted surpasses your tax liability as calculated in your Income Tax Return (ITR), the excess amount is refunded. This mechanism ensures taxpayers are reimbursed for any overpayments.

Who is Eligible for a Tax Refund?

Eligibility for a tax refund depends on various factors:

Excess Tax Payments If your TDS or advance tax payments exceed your tax liability, you’re eligible for a refund. This often applies to salaried employees, freelancers, and individuals with taxable investment income.

Claiming Deductions If you claim deductions under sections like 80C, 80D, etc., and these deductions lower your tax liability below the total tax paid, a refund may be due.

Filing an Income Tax Return Only those who file their Income Tax Return can claim a refund. The return must accurately reflect your income, deductions, and tax payments to establish if a refund is warranted.

Losses to Set Off If you have losses from previous years or the current year that can be carried forward and set off against current year income, you might be eligible for a refund if these losses reduce your tax liability.

Who is Not Eligible for a Tax Refund?

Certain situations or individuals may not qualify for a tax refund:

Income Below Taxable Threshold If your total income is below the taxable limit, a refund may not be applicable.

Salary Below Government Criteria Individuals earning below the minimum threshold specified by the Government of India may not qualify for a refund.

No Overpayment If your tax payments match your tax liability or you haven’t overpaid, a refund will not be available.

Non-Filers or Incorrect Filers Those who fail to file their Income Tax Return or file it incorrectly will not be eligible for a refund. Proper filing is essential for initiating the refund process.

Invalid Deductions Claims for deductions that do not meet tax regulations or lack valid documentation may result in a refund rejection.

Incorrect Bank Details If the bank account information provided in your ITR is incorrect or incomplete, the refund may not be processed.

How to Claim Your Tax Refund

Here’s a step-by-step guide to claiming your tax refund:

File Your Income Tax Return (ITR) Access the Income Tax Department’s e-filing portal. Choose the correct ITR form based on your income sources and eligibility. Accurately complete all required details, including income, deductions, and tax payments.

Verify Your ITR Verify your ITR using Aadhaar OTP, net banking, or by sending a signed ITR-V to the Centralised Processing Centre (CPC). Verification must be completed within 120 days of filing your ITR.

ITR Processing The Income Tax Department will process your return, assess your tax liability, and determine the refund amount. This process can take a few weeks to several months.

Refund Issuance After processing, the refund will be credited directly to your bank account. Ensure your bank details are accurate and up-to-date in your ITR.

Update Bank Account Details (if needed) If your bank details change after filing your ITR, promptly update them on the e-filing portal to ensure correct refund crediting.

How to Check Your ITR Refund Status for FY 2024-2025

To check your refund status, follow these steps:

Visit the Income Tax E-Filing Portal Go to the official Income Tax Department e-filing website.

Access the 'Refund Status' Section Navigate to the ‘Refund Status’ page, typically under the ‘Services’ tab or a similar heading.

Enter Required Details Input your PAN (Permanent Account Number) and the assessment year for your filed return.

Review the Status The portal will show the status of your refund, including whether it has been processed, approved, or if further action is needed.

Track Refund Processing Keep an eye on any updates or notifications from the Income Tax Department regarding your refund.

Understanding the tax refund process can simplify the experience. By following these steps and staying informed about your eligibility, you can make sure that you have a smooth process and quickly receipt of any excess tax payments. For expert guidance and personalized assistance, consult with JJ Tax. Visit our website or contact us today to get the support you need for all your tax-related queries.

JJ Tax

[globosetechnology12]

The Ultimate Checklist for Income Tax Filing in India

Introduction

Filing the income tax return in India has always been something of a formidable task, but with proper preparation, it should be smooth sailing. We therefore present to you the ultimate checklist for income tax filing in India to ensure you don't miss any important steps.

Step 1: Calculate Your Tax Liability

Before you file your ITR, you need to calculate your taxable income based on your earnings from different sources such as salary, business profits, investments, and other income streams. Check which income tax slab you fall under to understand your tax liability. If you are eligible for any rebates under Section 87A, factor that in while calculating your final tax liability.

Step 2: Collect All Necessary Documents

To file your ITR correctly, keep the following documents ready:

PAN Card

Aadhaar Card

Form 16 (For salaried individuals, issued by the employer)

Form 16A (For TDS deducted on income other than salary, such as interest)

Form 26AS (Tax Credit Statement)

Bank Statements and Passbooks

Investment Proofs (PPF, LIC, ELSS, NSC, FD, etc.)

Property-related Documents (If you have rental income or property transactions)

Capital Gains Statements (For stock market, mutual funds, or real estate transactions)

Home Loan Interest Certificate (If claiming deductions under Section 24(b))

Medical Insurance Premium Receipts (For deductions under Section 80D)

Education Loan Interest Certificate (For deductions under Section 80E)

Rent Receipts (For claiming HRA exemption if applicable)

Step 3: Check TDS and Advance Tax Payments

Check your Form 26AS to ensure that the TDS and advance tax payments made during the year match your records. This will help you avoid discrepancies in your return filing. If you find any mismatch, get it corrected before proceeding with your filing.

Step 4: Choose the Right ITR Form

The Income Tax Department offers ITR forms depending on the source and category of your income. Hence, it is quite important to select the correct form: 

ITR-1 (Sahaj) : For those drawing their income from salary up to Rs 50 lakh

ITR-2: For taxpayers with capital gains and multiple sources of income

ITR-3: For professionals and others having business

ITR-4 (Sugam) :For presumptive income tax return filers, a.k.a small businessmen and professionals

ITR-5, 6, and 7: For partnership firms, LLPs, companies, and trusts

Step 5: Calculate Final Taxable Income and Pay Any Arrears

After deducting all eligible deductions, calculate your final taxable income. If there is any additional tax payable, pay the same online through the Income Tax e-Filing portal using net banking, debit card, or UPI.

Step 6: File Your Income Tax Return Online

Log in to the Income Tax Department's e-Filing portal, upload your return, and verify it using Aadhaar OTP, Net Banking, or Digital Signature. All details entered must be double-checked before submission to avoid errors.

Step 7: Verify and Submit Your ITR

It means that after finalizing your return, you get 30 days to verify your return. It is only by verification that it will be made complete. Else, your returned ITR may be treated invalid. You are allowed to use Aadhaar OTP, net banking, or also by sending signed physical copy ITR-V directly to the office of CPC within the Income Tax Department.

Step 8: Track Your ITR Status and Await Processing

After successful filing and verification, you can trace your ITR status through the e-Filing portal, and if your return is eligible for a refund, please ensure that the bank details are correct, aligned with pre-validation to get the refund without any delay.

Common Mistakes While Filing ITR:

Entry of incorrect details of the bank account number

Wrong ITR form

Forgetting to claim eligible deductions

Not matching the Form 26AS with actual tax paid

Filing a return after due date and, hence paying the penalty

Failing to get the ITR verified in time

Conclusion

Filing your income tax return on time ensures compliance with tax laws and helps avoid penalties. If you need professional assistance, GTS Consultant India provides expert tax filing services, ensuring accuracy and maximum tax savings. With a team of experienced professionals, they simplify tax filing, helping individuals and businesses stay compliant and optimize their tax benefits. Let the experts handle your taxes while you focus on your financial growth.

[globose0987]

ITR Filing: A Comprehensive Guide to Filing Your Income Tax Return

Introduction:

Filing your Income Tax Return (ITR) is a crucial obligation for all taxpayers. This process not only ensures adherence to tax regulations but also provides financial advantages such as potential tax refunds and serves as documentation of income for various financial transactions. In this article, we will delve into the essential aspects of ITR filing, including its significance, different types, the filing process, and common pitfalls to avoid.

What is ITR Filing?

ITR Filing refers to the submission of income tax returns to the Income Tax Department. This process encompasses information regarding your income, deductions, exemptions, and tax obligations for a specific financial year. It is required for individuals, businesses, and other entities to file their ITR in accordance with their income levels and applicable tax laws.

Why is ITR Filing Important?

Legal Compliance: Under the Income Tax Act, it is obligatory for eligible taxpayers to submit their ITR by the specified deadline.

Avoid Penalties: Failing to file on time can lead to penalties and interest charges on outstanding tax amounts.

Claim Tax Refunds: If you have had excess tax deducted from your earnings, filing your ITR allows you to request a refund.

Proof of Income: The ITR serves as valid proof of income when applying for loans, visas, and government assistance.

Carry Forward Losses: Timely ITR filing enables you to carry forward any business or capital losses to offset against future earnings.

Avoid Notices and Scrutiny: Not filing or incorrectly filing your ITR may result in inquiries from the tax authorities.

Who is Required to File an Income Tax Return (ITR)?

Individuals whose earnings exceed the basic exemption threshold

Businesses and self-employed professionals

Corporations, partnerships, and firms

Non-Resident Indians (NRIs) with taxable income generated in India

Individuals possessing foreign assets or income

Taxpayers seeking refunds

Investors in foreign stocks or mutual funds

Categories of ITR Forms

The Income Tax Department has established various ITR forms tailored to different categories of taxpayers and types of income:

ITR-1 (Sahaj): Designed for salaried individuals with income not exceeding ₹50 lakh

ITR-2: Applicable to individuals and Hindu Undivided Families (HUFs) without business or professional income

ITR-3: Intended for individuals and HUFs with income derived from business or profession

ITR-4 (Sugam): For individuals, HUFs, and firms choosing presumptive taxation

ITR-5: For Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs)

ITR-6: For companies, excluding those claiming tax exemption under Section 11

ITR-7: For trusts, political organizations, and charitable entities.

Step-by-Step Guide for Submitting Income Tax Returns (ITR)

Collect Necessary Documents: Ensure you have your PAN, Aadhaar, Form 16, Form 26AS, bank statements, proof of investments, and salary slips ready.

Select the Appropriate ITR Form: Determine the correct form based on the nature of your income.

Access the Income Tax Portal: Navigate to the e-filing portal and log in with your credentials.

Identify the Assessment Year: Select the financial year relevant to your tax return submission.

Complete the Information: Input your income, deductions, and details of tax payments.

Review and Submit: Verify the accuracy of the information, validate it, and proceed to submit the return.

E-Verify Your ITR: Complete the verification process using Aadhaar OTP, net banking, or a Digital Signature Certificate (DSC).

Common Errors to Avoid When Filing ITR

Selecting an incorrect ITR form

Inputting inaccurate personal information

Failing to report all income sources

Claiming erroneous deductions

Missing the filing deadline

Neglecting to e-verify the return.

Due Date for ITR Submission

The deadline for submitting the Income Tax Return (ITR) is determined by the category of the taxpayer:

Individuals and Hindu Undivided Families (HUFs): July 31st (unless an extension is granted by the government)

Businesses subject to audit: September 30th

Companies: October 31st

Consequences of Missing the Deadline

Failure to submit your ITR by the due date may result in:

A penalty of up to ₹5,000 as stipulated under Section 234F.

Inability to carry forward any losses.

Accrual of interest on any outstanding tax.

Potential legal repercussions for intentional non-compliance.

Conclusion

Timely submission of your ITR is essential for maintaining financial discipline and adhering to legal requirements. The availability of online e-filing options has simplified the process significantly. Whether you choose to file independently or enlist professional help, ensuring that your ITR is accurate and submitted on time will alleviate stress and optimize your tax advantages.

Filing your Income Tax Return (ITR) is a crucial financial responsibility that ensures compliance with tax laws and helps you claim deductions, refunds, and other benefits. With the assistance of GTS Consultant India , the process becomes more streamlined, accurate, and hassle-free. Their expert guidance ensures that your tax filing is done efficiently, minimizing errors and maximizing potential savings.

By staying informed and filing your returns on time, you can avoid penalties and contribute to a transparent financial system.

[renukamd]

Common Mistakes to Avoid During LLP Annual Filing

Limited Liability Partnerships (LLPs) are a popular form of business structure that combines the advantages of a partnership and a limited company. Annual Filing for LLP in India is required to comply with various legal obligations, including annual filings, which are crucial for maintaining their active status and avoiding penalties. This article provides a detailed overview of the annual filing requirements for LLPs, the deadlines, and the penalties associated with non-compliance.

Essential Annual Filing Requirements for LLP

Annual Return (Form 11) Every LLP is required to file an Annual Return in Form 11 with the Registrar of Companies (ROC) within 60 days from the end of the financial year. This means that filing is typically due by May 30th each year. Form 11 contains details of the LLP's partners and any changes that occurred during the year.

What to include in Form 11?

Total number of partners

Contributions received by partners

Any change in the composition of partners

Summary of obligations and compliance during the year

Penalty for non-filing: If Form 11 is not filed within the due date, a penalty of Rs. 100 per day is imposed until compliance is achieved, without any maximum limit.

Statement of Account & Solvency (Form 8) LLPs must file their Statement of Account and Solvency in Form 8 every year, completed by October 30th of each financial year. Form 8 includes details about the LLP's financial position, including the declaration of solvency by the designated partners.

What to include in Form 8?

Statement of solvency or insolvency

Profit and loss statement

Balance sheet

Details of contingent liabilities, if any

Penalty for non-filing: A daily fine of Rs. 100 is imposed for delayed filing without any upper limit.

Income Tax Return (ITR) Every LLP must file an Income Tax Return by July 31st of the assessment year if audit requirements do not apply. However, if the LLP's accounts are subject to audit, the deadline is extended to September 30th.

What to include in the ITR?

Total income and deductions

Profit-sharing ratios among partners

Tax liabilities and payments

Any audits conducted during the year (if applicable)

Penalty for non-filing: If the ITR is not filed within the due date, a late filing fee of Rs. 5,000 is applicable. However, for LLPs with a total income of less than Rs. 5 lakhs, the late fee is reduced to Rs. 1,000. Interest on the late filing of taxes and penalties may also apply.

Additional Compliances

Audit Requirement: LLPs with an annual turnover of more than Rs. 40 lakhs or contributions exceeding Rs. 25 lakhs are required to get their accounts audited by a Chartered Accountant.

Maintenance of Books of Accounts: LLPs are required to maintain proper books of accounts on a cash or accrual basis, following double-entry accounting systems. The records should be kept for at least eight years.

Consequences of Non-Compliance

Non-compliance with annual filing requirements can result in:

Heavy penalties: Continuous daily penalties until the required forms are filed.

Loss of LLP status: In extreme cases, prolonged non-compliance can result in the Registrar declaring the LLP defunct.

Disqualification of partners: If an LLP fails to comply with its annual filings for an extended period, its designated partners may face disqualification from holding similar positions in other LLPs or companies.

Conclusion

Annual Filing for LLP proper functioning. It helps maintain the business's legal status, ensures transparency, and keeps the LLP compliant with regulatory obligations. Designated partners should be vigilant about deadlines to avoid penalties and legal issues. With proper planning and timely submissions, LLPs can ensure smooth operations and adherence to all statutory requirements.

[gtsconsultant]

Income Tax Returns: A Simple Guide to Tax Compliance and Financial Benefits

Income Tax Returns (ITRs) are a central part of financial management, as they enable individuals and businesses to officially declare their income, avail of certain deductions, and comply with tax regulations. Filing returns is not just a legal obligation; it is also an opportunity to be one step ahead of finances for long-term benefits. Yet, many taxpayers feel that this process is complicated and often miss due dates or make dangerous errors.

Our professional advice at GTS Consultant aims to make ITR filing simple, completely compliant, and an opportunity to avail all the possible benefits. Here’s an overview to help you appreciate the importance of ITR and how professional support can walk you through the process.

What is an Income Tax Return?

An Income Tax Return is a declaration of the income earned within one financial year. It has sections on the gross income stemming from various sources, the deductions claimed, and the taxes paid. The act of filing this return certifies that an individual is compliant with the Income Tax Act while, at the same time, allowing the Government to find out if more taxes are due from a taxpayer or if, in return, the Government has to give a refund.

Why Should You File Your Income Tax Return?

Legal Compliance: It is a must for an individual and businesses earning above certain income to file their returns. Non-compliance might invite hassles, impositions of penalties, or even legal troubles.

Claiming Refund: One can get back overcharged tax payment by filing the returns, through TDS or advance tax.

Proof of Financial Stability: One would require a filed ITR in many cases while applying for visas, loans, or other transactions.

Carrying Forward Losses: Losses-declared-including capital losses-under ITR can be brought forward to set off against income gained in the following relevant assessment year.

ITR Form Types

The Income Tax Department provides ITR forms according to different classes of taxpayers. Selecting the right form is especially crucial to avoid errors

ITR-1 (Sahaj) For employed persons earning under a salary with respect to one house property and interest income.

ITR-2 For individuals with Capital Gains, Foreign assets, and More than One Property.

ITR-3 For individuals and HUFs earning from business or profession.

ITR-4 (Sugam) For small businesses and professionals under the presumptive taxation scheme.

Filing Steps

Eligibility: Ascertain which ITR form pertains to your category and income.

Documentation: Gather the required documents-PAN, Aadhaar, Form 16, bank statements, and proof for deductions under sections like 80C (investments) and 80D (health insurance).

Calculate Taxable Income: Thereafter, sum up all income sources, make use of deductions wherever possible, and work out the tax liability.

File Online or Offline: File your return using the government website or obtain professional help to file it accurately.

Verify the Return: Use Aadhaar OTP, net banking, etc., to e-verify it.

Frequent Mistakes to Avoid

Filing mistakes can result in a tardy refund or penalties. Some errors people usually make are:

Personal Information Mistake: Check for errors against PAN, Aadhaar, and bank account numbers.

Misreporting Income: Report all sources of income, including interest and investments.

Ignoring Deductions: Do not overlook deductions under 80C (Investments) and 80D (Health Insurance).

Filing Incorrect Form: Wrong form-avoid rejection.

At GTS Consultant, such errors are ruled out as competent tax filing is done by us.

The GTS Consultant's Role in Tax Filing

Learning taxation is quite a cumbersome task, especially in the sequence for the businesses with many liabilities. The GTS Consultant exists here. With an experience of more than ten years, it specializes in providing customized tax solutions for individuals and businesses.

Our Services Include:

Tax Planning: To analyze your finances, we provide an added dimension to how your tax savings opportunities are taken up.

Accurate Filing: Our ITR filing subordinates every other obligation; compliance is kept in line with current norms.

Consultancy and Audits: We provide strategic insight in order to assist you with your tax liability and with audits.

Benefits of Professional Help

Leave it to an expert, and you will change your entire experience with taxes. The following benefits stand up to be enjoyed:

Correctness: Avoid making mistakes that could lead to penalties or delays.

Time-Saving: Something you could refer to as a tough job-someone can walk away with it for you.

Maximized Deductions: Make sure you get every deduction due to you, and the benefits thereunto.

Your Mind Will Be Free: You will not be concerned regarding compliance and other errors during the filing process.

Conclusion

To file the Income Tax Return means confirming the responsibility; it's the other way through which financial empowerment may actually be channelized. With expert hands on the work at GTS Consultant, you could ease the filing, follow through with compliance, and rest easy that your tax is well taken care of.

Ready to free yourself from the complicated world of tax filing? Get in touch with GTS Consultant; we will guide you through all the steps with unsurpassed expertise and individualized solutions.

[taxblgs]

📊 File Your Audit Report Under Section 44AB Before the Deadline! ⏰

Attention taxpayers! The due date for filing your audit report under Section 44AB is approaching fast—September 30, 2024!

Don’t wait until the last minute! Ensure compliance and avoid penalties by getting your audit done on time. Our experienced tax professionals are here to help you navigate the complexities of the audit process.

🔍 Why Choose Us?

Expert guidance on audit requirements

Comprehensive file audit report preparation

Timely submission to meet the deadline

💼 Let us handle your audit, so you can focus on what you do best—running your business!

📞 Contact us today for professional assistance and peace of mind!

[babatax]

ITR filing deadline to be extended till Jan 15 for some: Know who benefits

ITR filing Due Date: The Bombay High Court has asked the Central Board of Direct Taxes (CBDT) to extend the deadline for filing revised and belated Income Tax Returns (ITRs) to January 15, 2025. The extension will be for taxpayers eligible for the Section 87A tax rebate. What is Section 87A? The section provides relief to individual taxpayers, especially those with lower incomes. It offers rebate…

[licit360]

Annual Compliance for LLPs: A Complete Guide

Limited Liability Partnerships (LLPs) have become a popular business structure in India due to their unique blend of benefits—offering the flexibility of a partnership and the limited liability protection of a company. However, like any business entity, LLPs are required to adhere to certain annual compliance requirements to maintain their active status and avoid penalties. This guide provides a comprehensive overview of annual compliance for LLPs in India.

Why Annual Compliance Matters for LLPs

Annual compliance is not just a regulatory obligation; it ensures transparency, protects stakeholders' interests, and maintains the LLP’s good standing with the Ministry of Corporate Affairs (MCA). Non-compliance can lead to heavy penalties, legal complications, and even the potential closure of the LLP.

Key Annual Compliance Requirements for LLPs

1. Filing of Annual Return (Form 11)

What It Is: Form 11 is a summary of the LLP’s management, including details of partners and any changes during the year.

Due Date: May 30th of each financial year.

Late Filing Penalty: INR 100 per day until the filing is completed.

2. Statement of Account & Solvency (Form 8)

What It Is: Form 8 is a declaration of the LLP’s financial position and solvency status.

Due Date: October 30th of each financial year.

Key Information Required:

Statement of assets and liabilities

Income and expenditure details

Late Filing Penalty: INR 100 per day.

3. Income Tax Return Filing

What It Is: All LLPs are required to file their Income Tax Returns (ITR), regardless of whether they earn a profit.

Due Date:

July 31st (if tax audit is not required)

October 31st (if tax audit is required)

Tax Audit Applicability: If the LLP’s turnover exceeds INR 1 crore.

4. DIN KYC for Partners

What It Is: Partners holding a Designated Identification Number (DIN) must complete their KYC annually.

Due Date: September 30th of each year.

Penalty for Non-Compliance: Deactivation of DIN, which can only be reactivated after a penalty payment of INR 5,000.

Additional Compliance Requirements (If Applicable)

GST Filings

LLPs registered under GST must file monthly, quarterly, or annual GST returns, depending on their turnover and the chosen filing structure.

Audit Requirements

An audit is mandatory if the annual turnover exceeds INR 40 lakh or if the LLP’s contribution exceeds INR 25 lakh. Appointing a qualified Chartered Accountant for the audit is crucial in such cases.

Penalties for Non-Compliance

Failing to meet annual compliance requirements can lead to significant penalties:

Form Filing Delays: INR 100 per day per form, with no maximum cap.

Income Tax Non-Compliance: Penalties under the Income Tax Act, 1961.

Strike-Off Risk: Repeated non-compliance can lead to the LLP being struck off by the Registrar of Companies (RoC).

Steps to Ensure Timely Compliance

Maintain Accurate Records: Keep detailed records of financial transactions and partner details.

Set Reminders for Due Dates: Use calendar tools or compliance software to track deadlines.

Engage Professional Help: Consult with legal and accounting experts to ensure accuracy and completeness.

Regular Review: Periodically review compliance requirements to stay updated with regulatory changes.

How Licit360 Can Help

Giving the best legal services in Indore Navigating the complexities of LLP compliance can be daunting, but Licit360 simplifies the process with expert services tailored to your needs. From filing annual returns to ensuring tax compliance, we’ve got you covered. Visit our Annual Compliance LLP to learn more and get started today.

Conclusion

Staying compliant is crucial for the smooth functioning and reputation of your LLP. By adhering to the annual compliance requirements outlined above, you can avoid penalties and focus on growing your business. Partnering with a trusted service provider like Licit360 ensures that you stay on top of your compliance obligations efficiently and hassle-free.

[safe-money]

KSCAA writes letter to income tax dept about taxpayers being wrongly charged late penalty for ITR filing

Multiple experts have voiced their concerns about the Centralised Processing Centre (CPC) of the income tax department making errors in processing income tax returns (ITR). The Karnataka State Chartered Accountants Association (KSCAA) has sent a representation to the CBDT in this regard. KSCAA's representation says that the CPC has erred in considering the due date for filing ITR and has imposed penalties even for those who filed ITR well within the deadline.

CPC Processing Errors, according to KSCAA

According to the representation by KSCAA (a copy of which was seen by ET Wealth Online) the errors in processing of ITRs noticed by them are as follows:

Old/ New tax regime: Numerous taxpayers have received intimations from CPC erroneously calculating their tax liability under the old tax regime, despite these taxpayers having opted for the new tax regime at time of filing their returns.

Incorrect due date considered: Certain taxpayers, specifically partners of firms liable to tax audit, have filed their income tax returns by the extended due date of November 15, 2024. However, the CPC has issued demand notices to these taxpayers, incorrectly considering the due date as July 31, 2024, and levying late filing fees of Rs 5,000 under Section 234F.

Interest under Section 234A and 234B: Many taxpayers have reported receiving demand notices where the CPC has incorrectly calculated interest under Sections 234A and 234B of the Act, resulting in inflated tax liabilities. Additionally, the absence of a detailed breakdown of the interest calculations in the intimation is creating difficulties for taxpayers to verify and address discrepancies.

Late fees for revised Return under section 234F: In certain cases, taxpayers have received demand notices imposing a late fee of Rs 5,000 under Section 234F on filing of revised returns under section 139(5) of the Act. This is erroneous, as in such cases the original return was filed within the due date specified under Section 139(1) of the Act and accordingly no late fee should be levied for filing a valid revised return.

Proportionate TDS credit allowed: In cases where TDS is deducted on non-income components like GST or other reimbursements, the credit of TDS is not allowed in total, though the assessee has suffered the deduction. This creates an unjust situation where the taxpayer has to forego the TDS credit forever.

Defective ITR Notices issued incorrectly: Classification of Income Head Based on TDS Deduction Section: Certain taxpayers have received defective notices incorrectly suggesting that income should be classified under the head "Profits and Gains from Business and Profession" rather than "Income from Other Sources" solely based on the section under which tax was deducted (such as Sections 194J or 194C of the Act), says the representation.

This treatment of income overlooks the fact that classification of an income item by the deductor cannot override/overshadow the true nature of income as received and recorded by the taxpayer. The representation adds: "Further, such an exercise requires application of mind which is often debatable and outside the domain of the adjustments stipulated under section 143(1). Therefore, such issues cannot be subject matter of automated proceedings by CPC under Section 143(1) of the Act.''

Notices for defective ITRs issued due to incorrect TDS classification in Form 26AS

KSCAA said in its representation:Many taxpayers have received notices for filing defective ITR after filing their Income Tax Return (ITR) in Form ITR-1, where Tax Deducted at Source (TDS) on interest income was initially, and erroneously, shown under Sections 194J and 194C in Form 26AS. Subsequently, form 26AS was corrected/ updated to reflect these deductions under the appropriate section for interest for interest income (Section 194A of the Act). Despite this correction, the CPC has issued defective notices, disregarding the updated and accurate classification in Form 26AS at the time of return filing.

Other ITR processing problems faced by taxpayers

ET Wealth Online has spoken with various other chartered accountants (CAs) who related the problems faced by some of the taxpayers whose ITRs the CAs had filed.. Here's what they said:

Chartered Accountant Abhishek Soni, co-founder, Tax2Win said: "We are receiving defective return notices, even though, according to the 26AS and our filed returns, everything appears to be correct. Below are some examples:

Net Income Amount as 0 in 26AS: In some cases, the 26AS reflects both positive and negative values, resulting in a net amount of 0. We have excluded this from our client's ITR. However, we have now received a defective notice from the department stating that you have ignored the income mentioned in the 26AS.

Presumptive Income Cases: We have declared income above the limit specified under the presumptive taxation sections. Despite this, we received a defective notice claiming that we have declared income lower than the prescribed 8% or 50%, as applicable.

Chartered Accountant Divya Jokhakar, partner, B. D. Jokhakar & Co: Some of our clients are partners of firms where tax audit is applicable. So, we noticed that CPC has recently processed ITR of partners of firms which are liable to tax audit, with a late filing penalty of Rs 5000. The due date of such return was November 15, 2024, extended from October 31, 2024. In another case the partners who had losses under certain income heads were barred from carrying forward (the loss) saying it's a belated return. CPC's processing despite filing in time is creating a lot of problems. The taxpayers have to apply for reprocessing and file grievance complaints.

Chartered Accountant Ashish Niraj, partner, A S N & company, says:  We filed an income tax return for a taxpayer who was subject to tax audit. So, we had filled a column in the ITR with the appropriate value of an income which is what should have been done as per the law. However, CPC flagged the return and sent a notice saying why we did not declare this income in another column of the ITR instead of the column we used. It was a small dispute, so we did not argue about the logic with CPC and ultimately did whatever CPC asked and the client's ITR got processed.

Sujit Bangar, founder, TaxBuddy says: Several issues reported by KSCAA were also observed in the cases of our clients. Some of the prominent problems as per our client ITR included:

TDS Mismatch for TCS Employees: Many employees from TCS who filed their ITRs received defective notices or demand notices after processing. Initially, these were assumed to be CPC errors, but upon review, it was found that TCS itself had filed incorrect TDS details. TCS acknowledged this issue and informed employees that they had approached the tax department for rectification. Eventually, these errors were corrected, and fresh intimations were issued to the employees, resolving the discrepancies.

Presumptive Income Under Section 44AD: Several ITRs filed under the presumptive taxation scheme (Section 44AD) with income declared at 6% or 8% were flagged with defective notices due to CPC errors during processing. This caused undue panic among taxpayers. As a tax service provider, we actively communicated with our clients to explain the issue and assist in resolving it. However, individuals filing independently or through unregulated channels may have faced significant challenges.

Processing ITRs Under Incorrect Tax Regime: A few cases were observed where ITRs filed under the old tax regime were processed under the default new regime, leading to demand notices. This issue was minor but present. When taxpayers filed revised returns or rectifications, the demand notices were resolved.

Incorrect Interest Under Sections 234A and 234B: Many taxpayers received demand notices with inflated interest amounts under Sections 234A and 234B due to calculation errors by the CPC. The lack of a detailed breakdown in the intimation made it challenging for taxpayers to verify the accuracy of the calculations, further complicating the resolution process.

Carry Forward of Losses with Incorrect Filing Dates:When pre-filled JSON files were downloaded for taxpayers, errors were noted in the carry-forward loss schedules. The filing dates for previous assessment years were incorrectly mentioned, resulting in the non-adjustment of eligible losses during processing. This led to inaccurate demands being raised.

Common ITR processing issue faced by some taxpayers- demand notice for late ITR filing

Both KSCAA and Jokhakar say that their clients had to pay late fees despite filing the ITR on time. "In certain cases, taxpayers have received demand notices imposing a late fee of Rs 5,000 under Section 234F of the Act on filing of revised returns under section 139(5) of the Act. This is erroneous, as in such cases the original return was filed within the due date specified under Section 139(1) of the Act," said KSCAA in its representation.

Jokhakar said: "Some clients of mine who faced this, even got a section 245 notice for adjusting this Rs 5,000 late filing fee with their tax refund due. This happened despite them filing the ITR before the deadline."

"Our representation to the Central Board of Direct Taxes highlights critical systemic issues in income tax return processing that are causing undue hardship to taxpayers and professionals. We are seeking urgent intervention to address defective notices, incorrect tax regime calculations, and processing errors at the Centralized Processing Centre, which are creating unnecessary compliance burdens for professionals and anxieties for taxpayers. Our goal is to work constructively with the tax authorities to ensure a fair, efficient, and taxpayer-friendly system," says Chartered Accountant Vijaykumar M Patel, President, Karnataka State Chartered Accountants Association (KSCAA).

What CPC needs to do, as per KSCAA's representation

In its representation KSCAA suggested the following steps be taken by CPC to solve the above issues:

Review and rectify defective ITR notice issuance

Ensure the classification of income is based on its true nature rather than solely going by the section under which TDS has been deduced by independent third party, to prevent undue misclassification for assessees.

Ensure that updated Form 26AS is considered for processing the income tax return filed by assessee.

TDS credit should be allowed in full especially if it is reflected in Form 26AS. The allowability of the same may be taken up during assessments, etc and not restricted while processing intimation.

Implement enhanced validation checks in CPC processing

KSCAA requested the implementation of stronger validation protocols to prevent processing errors in tax regime selection, due date recognition, and interest calculations. This would include:

Ensuring taxpayers' chosen tax regimes are respected in demand notices, avoiding unnecessary disputes.

Correctly identifying extended due dates in cases of tax audit, particularly for partners in audited firms, to prevent unwarranted demand notices.

Providing detailed breakdowns of interest under Sections 234A and 234B in demand notices, allowing taxpayers to verify calculations and address any discrepancies effectively.

Request that late fees under Section 234F not be imposed on returns filed within the due date under Section 139(1), even if subsequently revised.

Source Link: https://economictimes.indiatimes.com/wealth/tax/kscaa-writes-letter-to-tax-dept-about-taxpayers-being-wrongly-charged-late-penalty-for-itr-filing/articleshow/115886305.cms

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