Your ITR Filing Date Extended. But Here’s Why You Must File Your Returns before the Due Date
Listen to Your ITR Filing Date Extended. But Here’s Why You Must File Your Returns before the Due Date
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The last day of filing Income Tax Returns (ITR), under normal circumstances, for assessees who need not audit their accounts viz. individuals, partnership firms, Association of Persons (AOPs), Body of Individuals (BoI) is July 31, while for those who are subject to audit viz. the corporate assessees and some non-corporate assesses, it is October 31.
However, owing to challenges thrown at various stakeholders including assessees by the COVID-19 pandemic, the Government of India recently relaxed various compliance timelines including ITR filling.
For assessees who need not audit their accounts, the due date to file ITR has been extended to September 30, 2021 (from July 31, 2021), and in the case of assessees who are subject to audit the due date has been extended to November 30, 2021 (from October 30, 2021).
Correspondingly, the timeline for filing the Tax Deduction at Source (TDS) statement pertaining to deductions for Q4FY21 has been postponed to June 30, 2021, from May 31, 2021. Employers too have been allowed to provide Form 16 to their employees by July 15, 2021, instead of June 15, 2021. The timeline for belated ITR filing/revised filing for the Assessment Year (AY) 2021-22 has also been extended by a month -- from December 31, 2021, to January 31, 2022.
Moreover, with the timelines for tax compliances under the Income Tax Act, 1961, being extended, the I-T department has decided to utilize this time window to upgrade its systems. In a separate press release on May 20, 2021, the Central Board of Direct Taxes (CBDT) said, the I-T department is expected to launch its new e-filing portal www.incometax.gov.in on June 7, 2021, aimed at providing taxpayer convenience and a modern, seamless experience to taxpayers.
Some of the unique features of the portal will be:
- Integrated immediate processing of ITRs to issue quick refunds
- Free of cost ITR preparation software will be available online and offline with interactive questions to help you taxpayers fill the ITR form even if you have no tax knowledge, with prefilling for minimizing data entry effort
- A new call centre to assist you, the taxpayer with immediate answers to your tax queries with FAQs, Tutorials, Videos and chatbot/live agent
- New payment options using net banking, UPI, Credit Card and RTGS/NEFT from any account of the taxpayer in any bank, for easy payment of taxes
- A mobile app which will be enabled subsequently for full anytime access on mobile network
Note, in preparation for this launch and migrations of services, the existing portal of the I-T Department for e-filing, www.incometaxindiaefiling.gov.in will not be available for taxpayers and other external stakeholders between June 1, 2021, and June 6, 2021.
(Image source: pixabay.com; photo courtesy stevepb)
You see, although the extension of the timeline to e-file the ITR has offered you ample time to gather all the documents required for computing your taxable income precisely, it would be wise to get organised and e-file your ITR much before the due date to avoid the last-minute rush.
"In this world, nothing is certain but death and taxes." - Benjamin Franklin
Here are a few benefits of e-filing ITR much before the due date...
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Get enough time to be organised for the ITR filing process - Although the new tax filing portal may have simplified the ITR e-filing process, do not undermine the time required to collate the data from all documents/forms/certificates to e-file your ITR. At times, sourcing documents such as interest certificates, loan repayment statements, TDS certificates, Form 26AS, among a host of others, could take time. And if you find any discrepancy in these documents, you will able to bring it to the notice of the person responsible to file the statement and get it corrected.
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Your tax return preparer will be able to pay more attention to details - Nearer to the due date, Tax Return Preparers (TRPs) and Chartered Accountants (CAs) are usually flooded with work. They may not be able to give sufficient time to your case. Hence, if you are dependent on them to e-file your ITR (since you find e-filing ITR not your cup of tea), make sure you reach out to your TRP or CA with all your documents/forms/certificates much before the due date, otherwise, they may not be able to give enough time and attention to your case.
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Faster Processing of Returns - When you keep the e-filing of your ITR for the last minute, it is possible that the servers may slow down due to numerous requests on to it closer to the tax return deadline. Avoid these exasperations by filing your ITR much before time.
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Avoid the errors, undue stress and penalty - When you keep e-filing of ITR for the last minute, the chances of errors are high. Plus, you invite undue stress and possibly penalties. Avoid doing this in the interest of your wealth and health.
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Faster processing of refunds - The earlier you e-file your ITR, the faster you will receive your refund (if any). If you delay e-filing your ITR, the refunds (if any) may also get delayed due to the rush. Remember, refund processing usually takes more time than processing forms with a tax due. When you are expecting a sizeable amount of tax refund against the ITR filed, always make it a point to e-file your ITR much before time. In a widespread health crisis--a pandemic--that we all are witnessing now, an income tax refund would add to your financial resources and be of help.
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Faster processing of loans, visas, and credit cards - If you are applying for a home loan or planning to take any other big financial decision backed by credit, your last-filed ITR mostly will be required; it is a mandatory document. Similarly, when you plan to travel abroad, for the visa formalities your latest ITR may be called for. Hence, file your ITR on time.
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Provide a better perspective to wisely plan in the current financial year - A fact is, no matter how low your income may be or from only a few sources, you may have still made a lot of mistake in your tax planning -- you may have missed availing certain deductions or not taken the other benefits offered under the Income Tax Act. But if you are a bit organised now and e-file the ITR well before time now, you have the opportunity to learn from those mistakes and gain a better perspective on how to optimise tax-saving in the current financial year.
Given these benefits, I suggest you get more proactive and focused on your tax planning and e-filing of ITR.
Rather than treating tax planning and tax filing as a burden, understand how you can make the best use of these provisions legitimately in your favour. Pay your taxes on time and discharge your constitutional and moral duty and be a law-abiding citizen.
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