The Central Board of Direct Taxes (CBDT) announced on September 18, 2023, that the tax audit due date for assessment year (AY) 2023-24 has been extended to October 31, 2023. This means that taxpayers who are required to get their accounts audited have more time to file their income tax returns. The CBDT has also extended the deadline for filing Form 10B/10BB (audit report) and Form ITR-7 (income tax return for trusts and other entities) to October 31, 2023. The original deadlines for these forms were September 30, 2023, and October 31, 2023, respectively.
Tax Audit Due Date for AY 2023-24
Trusts must file their income tax returns for fiscal year 2022-2023 by July 31, 2023, regardless of whether or not their finances need to be audited. If the trust’s finances need to be audited, the deadline to file the income tax return is October 31, 2023. If the trust is required to file a report in Form No. 3CEB under Section 92E, the deadline to file the income tax return is November 30, 2023.
India set a new record for individual income tax returns (ITRs) filed in financial year 2022-2023. By July 31, 2023, a record 6.77 crore ITRs had been filed, including 53.67 lakh returns filed by first-time filers. This is a 16.1% increase from the total number of ITRs filed in financial year 2021-2022 (5.83 crore) by July 31, 2022, according to the income tax department.
How to Pay Income Tax after the Deadline
You can still file your income tax return and pay your taxes after the due date, but you will be charged interest and a late filing penalty. The penalty for late filing is Rs 5, or Rs 1,000 if your total income is less than Rs 5 lakh. The interest rate charged on late payments is 1% per month, calculated from the day after the due date until the date of payment.
It is important to note that the income tax department may waive the late filing penalty in certain cases, such as if you have a valid reason for filing late, such as a medical emergency or a natural disaster. However, you should still file your return on time, even if you think you may be eligible for a waiver.
What are the Penalties for Missing the ITR Filing Deadline?
- Late filing fee: If you file your ITR after the due date, you will be charged a late filing fee. The fee is Rs 5,000, or Rs 1,000 if your total income is less than Rs 5 lakh.
- Interest on late payment: If you pay your taxes after the due date, you will be charged interest on the late payment. The interest rate is 1% per month, calculated from the day after the due date until the date of payment.
- Loss Adjustment: If you experience losses from investments in stocks, mutual funds, real estate, or any of your businesses, you can carry those losses forward and deduct them from your income in the following year. This can significantly reduce your tax burden in the future. However, if you fail to file your income tax return before the deadline, you will not be able to carry forward these losses.
How to file revised income tax returns before the deadline
In simple terms, if you made a mistake in your first tax return, you can fix it using Section 139(5). You do this just like you did with your first return. However, when you correct it, you have to go through the full e-verification process.
Who is eligible for income tax audit Report?
If you earn more than Rs 50 lakh as an individual professional or your business makes over Rs 1 crore in a year, you must get your taxes audited. Don’t wait for an extension; use ClearTax e-filing for a quick and easy income tax return filing in under three minutes.
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