It is likely that you will have to pay up to Rs. 5k penalty if you fail to meet the deadline to check the tax returns you file unless you have filed a late ITR and are required to pay penalty for any reason.
The Income Tax department has reduced the period for confirming ITR from 120 days after the date of the filing of ITR before by 30 days. In a notice published on July 29, 2022 the Central Board of Direct Taxes (CBDT) declared that the new rule on ITR verification will take effect beginning on August 1 20 ..
The CBDT announcement also noted that the time limitation of 30 days applies to ITRs that were filed following August 1st, 2022. for those who have submitted ITRs prior to July 31st, 2022, the time frame for confirming is 120 days.
The most recent notice from CBDT further states that if a person verifies the ITR within the period of 30 days (i.e. the new deadline) In such instances, the date of the e-verification/ITR-V submission will be considered as the date of submitting the return of income. ..
Three scenarios are discussed in relation with ITR submission and confirmation.
Condition 1:If you submitted your tax return prior to the deadline of July 31, 2022 , for FY 2021-22, then you are given 120 days in which to confirm the accuracy of your tax return. If you fail to meet this deadline to verify your return, you can submit a request for a condonation of your delay with the department of tax. If the request for condonation (of delay) request is approved you will be able to verify your ITR. If your condonation request is not accepted the ITR is deemed as if it was it was not filed, and you'll need to file it again as an amended ITR. A late fee of up to Rs . 5000 must be paid to file a late ITR for which you will be given 30 days to verify that it was filed after July 31st 2022.
Situation 2. If you did not meet the July 31 , and you are filing an ITR belated for FY2021-22, then late fees will apply to you in all instances. The deadline for the verification of the belated tax return will be 30 days, you don't need to pay the late fee in the event that you fail to meet the deadline to verify. This is due to the fact that you already have paid the fee to file the belated ITR.
3. In case you're in the category of those who's accounts must be audited prior to filing of ITR, then the due date for filing an ITR to cover FY 2021-22 falls on September 30th 2022. If you fail to check the ITR within 30 days, the date of ITR filing is considered to be the date you check the ITR. If the usual date (of the filing of ITR i.e. Sept . 30) applicable to you is over when you check your ITR, you will have to pay for the charges applicable to late ITR .
Chartered accountant Ruchika Bhagat director from Neeraj Bhagat & Co. which is a chartered accountants' business according to her, "In case the deadline for verification of ITR (30 days) is missed , the date for filing the taxes will become the day the tax return is confirmed (E-verified/physical ITR-V submittal). Additionally, if verification of ITR verification falls beyond the deadline for filing ITR (usually the 31st of July) and the penalty is pursuant to the section 234F i.e. penalties for filing late ITR is charged. "The income tax portal can request that the taxpayer first pay the late filing fees (maximum of Rs. $5,000) before giving him/her the option to check his or her ITR, if the deadline to file ITR is not past."
The Dr. Suresh Surana, the founder of RSM India - a tax consulting company says "In the event that a person opts to verify their ITR (i.e. via sending ITR-V directly to CPC, Bengaluru via Post) the date of the dispatch of ordinary or Speed Post of a properly verified ITR-V will be taken into consideration for the purpose of determining the 30 days time period beginning as of the date of sending the income tax return's data electronically."
Can you file a condonation request in the event that the 30 day ITR verification deadline is not met?
In the past, if a person did not meet an ITR time limit of 120 days for verification, they was able to submit a condonation request. In a "Condonation Request" the taxpayer asks for the tax authority to allow them to check the ITR and also explains the reason why they failed to confirm ITR within the stipulated deadline. If the tax department finds it acceptable, the verification of ITR is permitted.
The new amendment is that Tax Department has announced that not confirming ITR in the stipulated 30 days time frame could lead to consequences for late filing. So, can a single taxpayer still file a condonation application?
"Condonation request" can be made anytime online by providing reasonable reasons for the delay in e-verification. If Income Tax Department is satisfied with the reasoning that condoning is accepted. If condonation is approved to the tax department penalties for late filing are waived" According to Bhagat.
If the tax department does not allow you to verify your tax return after the date for verification has come over, then the tax return will be deemed to be invalid. The Chartered accountant Naveen Wadhwa DGM, Taxmann.com says, "When the original uncertified ITR is considered to be an incorrect tax return, taxpayers are able to submit a late return (provided that the deadline for the filing of the original tax return has passed). If a tax return is deemed as inadmissible and the tax consequences for not filing of the tax return could be severe (such as the forfeiture of loss or the interest provided under section 234A/B/C and so on.) regardless of whether the taxpayer has filed late returns. Taxpayers can request the excuse of delayed the filing of a return of income as well as a the waiver in interest."
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