Experts Emphasise Importance Of Fixed Due Date For Tax Filing

The busiest month for all the Chartered Accountants during the entire year. Despite the government's efforts to simplify the process of filing income tax returns online through basic steps, CAs continue to play a vital role in accurately calculating taxes and facilitating refunds.
 
It has become more hectic since the day it is said that The Union finance ministry is not planning to extend the deadline for filing income tax returns.
 
“In view, there would not be an extension of the date of its return as it seems from current trends and government voices,” said S Ravi, Ex-Chairman of BSE and Founder & Managing Partner of Ravi Rajan & Co.
 
According to Revenue Secretary Sanjay Malhotra, in an interview with a leading media house, there is currently no proposal under consideration, nor any intention to extend the deadline for tax filing. He strongly advises all taxpayers to file their tax returns promptly, emphasising that filing early is preferable.
 
CA Nishita Doshi, Research Analyst at Bandhan Mutual Fund, emphasised the importance of a fixed due date for filing income tax returns. She stated, "Unlike one-time requirements like linking Aadhaar with PAN, this exercise is recurring, and a fixed due date is necessary to ensure timely compliance. Unless there are external factors like a slowdown in the income tax portal or COVID-related issues, there should be no extension in the last date of filing income tax returns."
 
With only a handful of days left for the same, it is important to understand the basic requirement to file an income tax return. “Documentation requirement for the purpose of filing an income tax return would differ on a case-to-case basis,” said Chintan Ghelani, Associate Partner, Direct Taxation, N.A. Shah Associates.

Filing income tax returns on time offers numerous benefits and advantages. Saakar S Yadav, Director & Founder of myITreturn.com, explained the same in easy steps. Firstly, it helps you avoid penalties and interest charges associated with late filing. Secondly, filing on time allows you to claim any tax refunds sooner, providing you with access to owed money without delay. Additionally, timely filing ensures you have the necessary documentation to access financial benefits and assistance programs, such as loans, mortgages, and financial aid. By filing on time, you reduce the likelihood of being selected for audits or additional scrutiny by tax authorities. Moreover, timely filing allows you to plan for future tax obligations more effectively. Lastly, filing within the due date allows you to carry forward your losses and file a revised return in case you have missed some information.

Who Can File It
Ghelani has explained that an individual is required to file an income tax return if their income exceeds Rs. 2.50 lakh or Rs three lakh if they are between 60 and 80 years old, or Rs five lakh if they are above 80 years old.

Additionally, filing a return is mandatory regardless of income in the following cases:

a. If an individual has deposited an amount of Rs one crore or more in aggregate in one or more current accounts with a bank.

b. If an individual has incurred aggregate expenditures exceeding Rs two lakhs on foreign travel.

c. If an individual has incurred aggregate expenditures exceeding Rs one lakh on electricity consumption.

d. If an individual holds any asset (including any financial interest in any entity) as a beneficial owner or otherwise, or is a beneficiary of such an asset, or has signing authority in any account located outside India.