Any corporate or individual entity files an ITR with the government, indicating their income earned during the relevant fiscal year and the payment of the taxes. Here is how a simple ITR filing process is summarised:
Who should file ITR?
● Individual person: Any person is required to file an ITR if his total income exceeds the basic limit. In FY 2023–2024, it was ₹2.5 lakh for those below 60, ₹3 lakh for seniors, and ₹5 lakh for individuals above 80 years.
● Businesses and firms: All businesses, limited liability partnerships, and partnerships in firms, are required to file an ITR, irrespective of what their income is.
Types of ITR forms
The type of income, residency status, and other specific details determine the type of ITR form. The general forms of ITR forms are the most updated as follows for the assessment year 2024–25 (financial year 2023–24):
ITR 1 Sahaj: For individuals having income up to ₹ 50 lakh total from one source of income, interest etc., and one or more sources of income.
● ITR-2: For individuals who do not have income from profit of business or profession and HUFs.
● ITR-3: For individuals and HUFs whose income includes business or professional gains and profits.
● ITR 4: This is for Individual, HUF and Firm excluding LLP whose income is presumptive in the profession and business.
Steps to file ITR
● Gathering the document: Get all the required documents in order from bank statements to proof of investments, Aadhaar cards, PAN, salary slip and so on.
● Choosing the correct and applicable ITR form: Choose the correct form of ITR by looking at sources of your income and other given criteria.
● Evaluate total income: Analyse your total income, consider the available deductions under the various sections like 80C, 80D, and then choose your income tax bar.
● File Online: The taxpayers need to file online through the e-filing facility provided by the Income Tax Department.
● ITR Verification Check your filed ITR after filing. You have 120 days to electronically e-file this with the use of Aadhaar OTP, net banking, or mailing a signed hard copy to CPC Bangalore.
● Acknowledgement: After verification, you will get an acknowledgement which shall confirm that your return was filed correctly.
Deadline for filing ITR
The due date of filing the ITR every year differs based on the category of taxpayers, whether he or she be a person, company, etc. The regular date is 31st July of the assessment year; for example, 31st July 2024 for the assessment year 2024–25 in the case of persons and HUFs whose income is not covered under the audit provisions of the Act. In some cases, due dates get extended by the government, so it is essential to check the latest ones. The number of taxpayers rushing to file forms has increased with the deadline drawing nearer. However, many of the taxpayers are seeking an extension of the due date since they face continued delays due to faults in the e-filing platform.
The July 31 deadline for filing ITR is more often than not extended by the taxpayer due to various reasons.
1. Technical glitches may occur in online return filing platforms itself when it is closer to the deadline, which annoys and probably delays the submissions.
2. Issues with Accessibility: Some taxpayers are not able to utilise tax filing services either due to a lack of internet access or other practical problems.
3. Amendments and Clarifications: Tax laws and forms change; sometimes taxpayers just may need more time to understand new guidance or seek clarification from tax authorities.
4. Expert Support: If the workload of tax professionals or chartered accountants becomes too heavy due to too many clients during peak filing season, delays may be anticipated on the part of the taxpayers seeking their support.
5. The disruptions of regular routines due to COVID-19 could have been a major factor in making it hard for taxpayers either to obtain required documentation or seek expertise.
6. Late Form Issuance: In such cases, some banks, financial institutions, or employers may have late issuance of Form 16 or TDS certificates that need to be filed appropriately.
7. Unexpected Events or Natural Disaster: This is where situations such as emergencies or natural disasters cause disorder in normal business operations and, in turn, makes it difficult for the taxpayers to beat some deadlines.
Issues in the income tax portal persist and are marring the process of making tax payments and filing of ITRs for AY 2024–2025, due to which, on behalf of tax consultants and individual taxpayers, pleas to extend the deadline for filing ITRs for 2024 have come. The problems have been represented to the finance minister, Ms Nirmala Sitharaman, by way of various letters written to her by the Karnataka State Chartered Accountants Association, Income Tax Bar Association, All Gujarat Federation of Tax Consultants and the Institute of Chartered Accountants of India for an extension of the last date for filing of ITRs up to August 31, 2024. Types of glitches taxpayers are facing One chartered accountant enumerated the following grievances against the Income Tax Department in his accusations. These included inability to access form 26AS/AIS/TIS, inconsistency between figures in the statements, restricted options for responding in AIS/TIS, delayed updates of responses in TIS, glitches on the income-tax e-filing portal, inconsistency in pre-filled data, error messages during ITR filing, failure to receive OTPs for authentication, and trouble downloading filed ITR Receipts.
Penalties for late filing of ITR
In case of failure to file the ITR within the deadline, a penalty is charged against the defaulter taxpayer, based on his or her income and how long the delay will be. Such fines may thus be avoided, and compliance maintained in accordance with the laws, by filing returns in time.
Conclusion
In the light of continued problems in the e-filing portal of the Income Tax Department, the income tax authorities are now expected to finally heed the calls and at least revise the deadline for filing of ITRs to August 31.
For any tax related query you can contact the author at 9024915488.
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