The income tax return-filing season is over. The due date – July 31 – has passed by and you can heave a sigh of relief if you have met the deadline.
But that is, only if you have completed the critical task of verifying your return once you are through with the submission. If you haven’t, then you need to hurry and complete the process within 120 days of having filed your returns.
This apart, if you have missed the deadline and filed returns after July 31, then this window shrinks further. As per the recently-revised income tax department rules, late-filers will have to verify their returns within 30 days.
To understand the importance of verifying returns, the convenience that e-verification offers and recent changes in this process, Moneycontrol’s Preeti Kulkarni spoke to tax expert Kuldip Kumar, Partner, Vialto Partners.
Here are some edited excerpts:
The time limit for verification of tax returns filed on or after August 1, 2022 (that is, after the July 31 due date) has been reduced from 120 days to 30 days.
For tax returns which were filed on or before July 31, 2022, time limit to verify remains the same, that is, 120 days from the date of filing the tax return.
You can take the physical verification route, but e-verification using Aadhaar, net banking and so on is more convenient.
The original tax return for the assessment year 2022-23 was to be filed by July 31, 2022 and a belated return can be filed by December 31, 2022.
However, there will be consequences. For instance, you will have to pay a late filing fee of Rs 5,000 (Rs 1,000 where the total income does not exceed Rs 5 lakh)
Interest under section 234A will be levied on outstanding tax dues at the rate of 1 percent month for the period of delay
In case of you have incurred losses, (other than loss under the head ‘house property’), you will not be able to carry these forward
Those who miss even the deadline to file belated returns can take recourse to the new facility – updated return in form ITR-U.
It can be filed irrespective of the fact that the original, belated or revised return is already filed by the individual. The time limit to file the updated return is within 24 months from the end of the relevant assessment year.