Income Tax- Due date extended but keep in mind its effects !

Arjuna (Fictional Character): Krishna, which income tax due dates are extended by CBDT?

Krishna (Fictional Character): Arjuna, Recently the CBDT has released a notification specifying the extension of due dates of Income Tax Returns and TDS Forms. The following due dates are extended:

1. Income Tax Return – Due date is extended to 07th November 2022(earlier the due date was 31st October 2022.)

2. TDS Form 26Q – Due date is extended to 30th November 2022 (earlier due date was 31st October 2022.)

Arjuna (Fictional Character): Krishna, which income tax due dates are NOT extended by CBDT?

Krishna (Fictional Character): Arjuna, The following due dates are NOT extended:

1. TDS Returns other than TDS Form 26Q –due date was 31st October 2022.

2. Due date of tax audit for those assesee to whom transfer pricing provisions apply has not been extended, their due dates remain at 31st Oct2022.

Arjuna (Fictional Character): Krishna, What if Income Tax Return is not filed in time?

Krishna (Fictional Character): Arjuna, if Income Tax Returns are not filed in time, following are the effects which taxpayers will face-

1. The taxpayer will have to pay interest if he pays self-assessment challan after 1st November at the rate of 1% for the whole month,

2. If the return if filed after the due date i.e after 07th November 2022, Late fees of Rs 1,000/5,000/- has to be paid by the taxpayer.

3. Carry Forward of Loss shall not be allowed if return is not filed in time.

Arjuna (Fictional Character): Krishna, What if TDS Returns are not filed in time?

Krishna (Fictional Character): Arjuna, if TDS Tax Returns are not filed in time, following are the effects which taxpayers will face-

1. If taxpayers fails to file TDS return before due date shall be liable to pay a fee of Rs.200 every day

2. Interest at the rate of 1.5%for the whole month shall be payable by the taxpayer.

Arjuna (Fictional Character): Krishna, what lesson the taxpayer should take from this?

Krishna (Fictional Character): Arjuna, The Income Tax Department has extended the due date to avoid any technical glitches faced by Income Tax websites which was faced while uploading tax audits on 30th September. By extending the due date, the taxpayers as well as their accountants have been provided additional time to ensure that they have enough time to pay taxes within the due date. This will help avoid the penalty levy and protect carry forward of losses if any.