Attention: ITR Due Date may not be extended, File ITR before 31st July 2022 to avoid late fees of 1000/5000

Arjuna (Fictional Character): Krishna, What is the buzz going around regarding Income tax return ?

Krishna (Fictional Character): Arjuna, The Due Dates for all Individuals, HUF's and Firms who are not required to audit their books of accounts, company assessee, LLP's assessee, etc. are required to file their Income Tax Return before 31st July, 2022. So this is the last week to file Income Tax Return.

Arjuna (Fictional Character): Krishna, what are the things which need to be kept in mind for filing Income tax return before 31st July 2022?

Krishna (Fictional Character): Arjuna, while filing Income Tax Return the taxpayer have to keep some documents handy such as:

1. Form 26AS
2. AIS (Annual Information Statement)
3. Form 16 (in case of salaried employees)
4. Bank account Statements
5. Documents for claiming deduction u/s 80 (eg. receipt of insurance premium paid, Donation given, Tuition fees, housing loan repayment)
6. Any other document as may be required

 While filing ITR taxpayer should ensure all the incomes are properly disclosed in ITR and information available in above documents are properly matched. In case of business entity taxpayer must make sure to reconcile G.S.T as per books and GST portal and must also verify the balances of debtors and creditors and valuation of closing stock. The taxpayer should analyse and choose the tax regime which is beneficial as per the applicable conditions.

Taxpayer should ensure that information provided in AIS regarding share market been reconciled with the capital gain statement & profit and loss account provided by the broker. Sometimes sales rate and purchase rate shown in AIS at a closing rate of that day and may not be the same with the statement provided by the broker, so the value of the sale of AIS may not match. The taxpayer should also ensure that if they are maintaining books of accounts the holding of their shares, mutual funds as on 31-03-22 should match with the statement.

Arjuna (Fictional Character): Krishna, what are the consequences of not filing ITR before 31st July 2022?

Krishna (Fictional Character): Arjuna, the consequences are-

1. late fees u/s 234F of Rs.5,000 will be levied if total income is above Rs. 5,00,000 and Rs. 1,000 if total income is upto Rs.5,00,000.
2.  Losses under the head Income from Business or Profession or Income from Capital gains, can not be carry forward to next year.
3.  Interest will be payable @ 1% per month on the tax payable.

Arjuna (Fictional Character): Krishna, what should one learn from this?

Krishna (Fictional Character): Arjuna, the assessee should avoid last minute rush and file the ITR as early as possible. As the due date comes near, we may face some heavy traffic in the income tax site to avoid the Late fees and interest. This year the last date of income tax falls on Sunday which is a bank holiday, so there may be traffic in banking channels, hence the assessee should ensure that they file their return without waiting for the last date.