Saturday, 18 August 2018

Changes in ITR (Income Tax Returns) filing rules

The due date for filing ITRs for this year has been extended by a month, from the earlier deadline of July 31 to August 31.
Additionally, a number of changes have also been made with regard to ITR forms and other rules.
So, do keep track of the new deadline and these rules before filing your ITR.

ValidationInvalidation of previous offline forms, saved online drafts

A number of changes have been introduced in ITR forms, such as in Sections 234F and 234A. To begin with, previously saved but un-filed offline excel/java utility forms will be now be considered invalid.
Similarly, in case of online ITR-1, previously saved drafts that weren't filed before July 31 will no longer be available, and a new form will have to be filled from scratch.

VerificationChanges made in verification section of ITR form

A verification is required to be done by the applicant while filing ITRs in online and offline modes, under the section 'Taxes Paid & Verification'.
Notably, after the due date extension, a new option has been introduced under which one can file ITR either as 'Self' or as a 'Representative'.
Furthermore, in case of ITR-4, four options are given - Self, Representative, Karta, Partner.

Late feeThe late fee deadline has been pushed back too

Earlier, rules stated that if a taxpayer failed to file their ITR before July 31, a late fee of Rs. 5,000 (extendable upto Rs. 10,000) was to be levied.
However, now, since the ITR filing date has been extended to August 31, this late fee will be applicable in case a person doesn't file their return before the new due date i.e. August 31.

Interest computationInterest on tax liability will be charged beginning August 31

In case a taxpayer fails to file their ITR before the stipulated deadline, a monthly interest of 1% will be levied on tax liability, if any, starting from the due date to the actual date of filing.
Therefore, since the deadline has been pushed back by a month, interest will be chargeable beginning August 31.


Post a Comment

Follow by Email


Follow by Email

Contact Us


Email *

Message *