This article is in continuation of our last article on “Income Tax Return filing” for series on “Taxation Basics for Startups”. In this article we will discuss and address in detail about some of issues relating to “Income Tax Return Filing”.
What happens if you file your tax returns after the due date?
Individuals and businesses, not required to get their books of accounts audited are required to file their Tax Returns before 31st July for financial year (For FY 2011-12, the due date extended to 31st August 2012). However, there are some consequences of delay in filing of income tax return, listed as below:
When to Avail re-filing or revise return option?
Only if original return is filed within the due date then only one can avail the benefit of re-filing of ITR referred as revise return. Revise return can be filed if after filing the original return any omission or any wrong statement in the return filed is discovered. Here, it is important to note these points to avail full benefit of this option:
What is Tax Return Filing - With or without Digital Signature?
Online return filing can be done with or without digital signature. Government has mandated certain assessee for online return filing and along with this it has also mandated certain class of assessee to file online return only with the digital signature. Here is the list of them:
Compulsory E-filing with or without Digital signatures –
Compulsory E-filing only with Digital signatures –
What is ITR V & ITR Acknowledgement?
Online ITR can be filed with or without the use of a digital signature and this filing option lays little difference between ITRV and ITR Acknowledgment.
ITR V stands for ‘Income Tax Return – Verification’ form which is generated when ITR is filed without the use of a digital signature. Duly signed copy of ITR V has to be submitted to the IT Department and upon the receipt of ITR V, department will send an e-mail acknowledging the receipt and this is our ITR Acknowledgement and now filing is complete.
ITR Acknowledgement is instantly generated when ITR is filed with the use of a digital signature and there is no need to submit to the IT Department.
What steps to follow after getting the ITR V to complete Tax filing?
Duly Signed copy of ITR V has to be submitted to the Income Tax Department so as to complete the filing process as the department needs to verify the authenticity of income tax return when filed online without using a digital signature. Follow these basic steps to avoid rejection or delay in acknowledgement of receipt.
What happens if the Original Return has been rejected at CPC due to non-receipt of ITR-V?
In case 120 days period (with extension, if any) has not elapsed : The assessee is required to send a signed copy of ITR-V again to "Income Tax Department – CPC, Post Bag No - 1, Electronic City Post Office, Bengaluru - 560100, Karnataka" within 120 days of uploading the return by ordinary post or speed post only.
In case 120 days period (with extension, if any) has elapsed: The assessee is required to file a revised return; however, the revised return filed now will be treated as original belated tax return.
How to verify status of ITR and Refund?
Income tax department has given benefits to the assessees for verifying various statuses online in the Income Tax department. One can easily check their ITR V receipt status, ITR Processing Status, Tax Refund status and Refund Failure status too and these statuses can be easily checked by logging in the income tax website.
E-return has been processed by CPC raising a demand or with less refund. Whom do I need to approach for Rectification?
The online rectification application may be filed on income tax website so long as e-return processed for relevant Assessment Year is still with CPC. However, in case, processed e-return has been transferred to Assessing Officer, then, one needs to approach AO with rectification application on paper.
What to do if refund failed due to error in bank account number or Change in the bank account details?
In case refund is delayed or failed due to error in bank account number provided or change in the account details following things need to be done to get refund processed:
In coming weeks, we would come up with more articles on issues related to taxation for our series on “Taxation Basics for Startups”.
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