Taxpayers Should Not Wait For The Due Date To File AY 2022 ITR: Here's Why

The deadline or due date for filing ITR for individuals and even for some other taxpayer categories has now been extended beyond the earlier prescribed deadline of September 30 in light of the glitches in the new income tax portal which made it difficult to complete the task. Nonetheless it shall be in the best interest of taxpayers to complete the process at the earliest. Here's we discuss why we are advocating to do task at the earliest possible and not postpone it to the last minute.

Taxpayers Should Not Wait For The Due Date To File AY 2022 ITR: Here's Why

This is particularly for taxpayers for whom the tax payable is over Rs. 1 lakh. Note for such taxpayers there will be charged an additional interest at the rate of 1 percent per month under section 234 A despite filing the return in the extended period.

Extension of the due date not applicable in relation to Section 234 A

In the circular providing for the extension of the deadline to file returns there is appended a clarification 1 which states that the extension of the due date shall not be applicable in relation to the provision of Section 234 A.

This means despite the deadline extension and taxpayer filing the return of income during the extended period, there will be levied on them an additional interest at 1% interest per month from the original due date of filing tax return i.e. July 31, 2021 in the case of ordinary taxpayers and October 31, 2021 in the case of taxpayers who are required to get their accounts audited, in case the balance amount of tax payable i.e. self-assessment tax payable exceeds Rs 1,00,000.

So, the only relief or favour as per the latest circular is non-levy of Rs. 5000 fee for late filing of return under section 234F of the Act.