Today, July 31, 2024, is the last day to file an income tax return (ITR) for the financial year 2023-24. Any delay will result in penalties for taxpayers, including interest if there is any tax liability. Therefore, it is crucial to file your ITR before the day ends. However, it is important to ensure that all details in your ITR are accurate and match the annual information statement (AIS). Inaccurate information may lead to the income tax department issuing a notice. So, there are two key considerations: avoid penalties for late filing and ensure your information is accurate.
Penalty On Delayed ITR Filing
According to the Income Tax Act, “If assessee who is required to furnish return of income under section 139 failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to pay a fee of Rs. 5,000 if the return has been furnished after the due date prescribed under section 139(1). However, it shall be Rs. 1,000 if the total income of an assessee does not exceed Rs. 5 lakh.”
However, for those who need to pay some taxes, the penalty will be an additional amount including the interest on the late tax payment.
Interest Payment: Under this section, a taxpayer who has to pay tax but delays it needs to pay interest on the amount paid late. As per the Income-tax Act, “Under section 234A, interest is levied for delay in filing the return of income, filing of an updated return or filing of a return in response to the notice issued under section 142(1).” The interest is levied at the rate of 1 per cent (simple interest) per month on the tax amount unpaid.
By July 30, 2024, over 6.5 crore ITRs had been filed including over 45 lakh ITRs filed on the same day (July 30, 2024).
Another important point to keep in mind is that the details in the ITR should be accurate. It should match with the AIS. In case of a mismatch, the department may issue a notice to seek clarification.
Why To Match AIS Information While Filing ITR
Primarily a taxpayer should match ITR details with the information given in AIS and when these are in tandem, file the return. In case of a mismatch, there is a chance of getting an income tax notice. This is because the department sources information from other concerned departments and entities, including banks for deposit details, the Securities and Exchange Board of India (Sebi) for mutual funds and stock details, etc.
As AIS provides a comprehensive picture comprising of all information of taxpayers, ranging from the purchase and sale of movable and immovable property, capital gain, tax deducted at source (TDS) and tax collected at source (TCS), dividends, interest from savings and fixed deposits, foreign transactions, etc., the taxpayers should ensure the details given in AIS match with the ITR details before filing the return.
Having said that, the information in AIS may sometimes be wrong and in that case, a taxpayer can report it in the portal as ‘Feedback’. Such a taxpayer should file the return based on actual and genuine data and keep the proofs safe to validate the AIS feedback given.
How To Give AIS Feedback:
In case of a mismatch between the AIS and the actual data, a taxpayer needs to report it on the income tax portal. One can do so by logging in to the official website / selecting AIS (from the top bar) / selecting AIS –Annual Information Statement. A taxpayer needs to choose the wrong information provided, click on the ‘Optional’ button in the feedback column, and then add feedback. There is a dropdown menu to select the feedback from. Once selected click ‘Submit’. The taxpayer will receive an SMS and an email confirming the same.
So, don’t delay any longer, match the information, provide feedback if required, and file your ITR to avoid penalty.
