Latest news with #DeepeshChheda
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Business Standard
16-07-2025
- Business
- Business Standard
Delay in ITR-5, 6, 7 utilities:Brace for shorter filing window, say experts
Taxpayers looking to file ITR-5, 6 and 7 are waiting for their forms to go live on the Income Tax portal. Tax experts say the hold-up has left professionals with a shrinking window to complete complex filings, raising the chances of last-minute errors. 'These forms require complex disclosures, audits and reconciliations. The phased rollout of ITR utilities this year has disrupted workflows even in the most efficient tax practices,' said Sonu Jain, chief risk and compliance officer at 9Point Capital. ITR-2 and 3 utilities were also released late in mid-July. 'Normally, filings for multiple clients are spread over 3-4 months. This delay has created a backlog, increasing the chances of last-minute rush, errors and delayed refunds. Taxpayers are also grappling with discrepancies between AIS data and their own records, making the process slower and more stressful,' said Deepesh Chheda, partner at Dhruva Advisors. What taxpayers should do now Experts stress that taxpayers should use this time wisely. 'Finalise your financial statements, reconcile data with Form 26AS and AIS, and prepare drafts of your returns based on last year's schema,' advised Kinjal Bhuta, CA and treasurer of the Bombay Chartered Accountants' Society. She warned that waiting for the utilities to go live could leave too little time for quality checks. Deepak Kumar Jain, chief executive officer of recommended that taxpayers, required to undergo audits, complete them early and coordinate closely with tax professionals. 'Preparedness always pays dividends. Do not rely on the hope of an extension,' he cautioned. Will the deadline be extended? While the government had extended deadlines for non-audit cases earlier, no fresh announcements have been made for ITR-5, 6 or 7 filings. 'Future extensions cannot be predicted. For corporates and trusts, due dates are linked to other compliance deadlines under the Companies Act and GST, so any miscalculation can lead to a domino effect of non-compliance,' said Jain of 9Point Capital. Penalties for missing the deadline Failing to file on time can prove costly. Taxpayers with income above Rs 5 lakh may face a penalty of Rs 5,000 under Section 234F, while those below the threshold are charged Rs 1,000. Interest at 1 per cent per month applies on unpaid taxes. 'Belated filers also lose the ability to carry forward business or capital losses and may face delayed refunds,' Chheda noted. Bhuta pointed out an additional risk. 'Multiple deadlines coinciding could overwhelm the Income Tax portal, adding to taxpayers' woes.' With little clarity on further extensions, taxpayers filing ITR-5, 6, or 7 should proactively prepare to avoid last-minute bottlenecks and penalties. Staying in contact with tax advisors will be critical in navigating the compressed timeline.
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Business Standard
16-07-2025
- Business
- Business Standard
After buying a second-hand car, this is how you transfer insurance policy
Taxpayers looking to file ITR-5, 6 and 7 are waiting for their forms to go live on the Income Tax portal. Tax experts say the hold-up has left professionals with a shrinking window to complete complex filings, raising the chances of last-minute errors. 'These forms require complex disclosures, audits and reconciliations. The phased rollout of ITR utilities this year has disrupted workflows even in the most efficient tax practices,' said Sonu Jain, chief risk and compliance officer at 9Point Capital. ITR-2 and 3 utilities were also released late in mid-July. 'Normally, filings for multiple clients are spread over 3-4 months. This delay has created a backlog, increasing the chances of last-minute rush, errors and delayed refunds. Taxpayers are also grappling with discrepancies between AIS data and their own records, making the process slower and more stressful,' said Deepesh Chheda, partner at Dhruva Advisors. What taxpayers should do now Experts stress that taxpayers should use this time wisely. 'Finalise your financial statements, reconcile data with Form 26AS and AIS, and prepare drafts of your returns based on last year's schema,' advised Kinjal Bhuta, CA and treasurer of the Bombay Chartered Accountants' Society. She warned that waiting for the utilities to go live could leave too little time for quality checks. Deepak Kumar Jain, chief executive officer of recommended that taxpayers, required to undergo audits, complete them early and coordinate closely with tax professionals. 'Preparedness always pays dividends. Do not rely on the hope of an extension,' he cautioned. Will the deadline be extended? While the government had extended deadlines for non-audit cases earlier, no fresh announcements have been made for ITR-5, 6 or 7 filings. 'Future extensions cannot be predicted. For corporates and trusts, due dates are linked to other compliance deadlines under the Companies Act and GST, so any miscalculation can lead to a domino effect of non-compliance,' said Jain of 9Point Capital. Penalties for missing the deadline Failing to file on time can prove costly. Taxpayers with income above Rs 5 lakh may face a penalty of Rs 5,000 under Section 234F, while those below the threshold are charged Rs 1,000. Interest at 1 per cent per month applies on unpaid taxes. 'Belated filers also lose the ability to carry forward business or capital losses and may face delayed refunds,' Chheda noted. Bhuta pointed out an additional risk. 'Multiple deadlines coinciding could overwhelm the Income Tax portal, adding to taxpayers' woes.' Key takeaway With little clarity on further extensions, taxpayers filing ITR-5, 6, or 7 should proactively prepare to avoid last-minute bottlenecks and penalties. Staying in contact with tax advisors will be critical in navigating the compressed timeline.
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Business Standard
07-07-2025
- Business
- Business Standard
Changed jobs recently? Here's how to file ITR without any errors
If you switched jobs during the last financial year, filing your income tax return (ITR) could be a bit tricky. With multiple Form 16s, possible TDS mismatches, and lump-sum payments like gratuity or PF withdrawals in the mix, even a minor slip-up can invite a notice from the tax department. Experts break down the common pitfalls and share tips to help you file your return smoothly. Don't miss income from previous employer 'One of the biggest mistakes taxpayers make is reporting income from only their latest employer and forgetting the salary earned from the previous one,' says Niyati Shah, chartered accountant and vertical head, personal tax at 1 Finance. 'This leads to underreporting of income and can trigger a notice from the tax department.' Deepesh Chheda, partner at Dhruva Advisors, points out that employees also often fail to inform their new employer about income from the earlier job using Form 12B. 'As a result, the new employer calculates tax only on the current salary, which often leads to insufficient TDS and a higher tax liability at filing time,' he says. Consolidate multiple form 16s To file your return correctly, start by collecting Form 16 from each employer you worked for during the financial year. Add up salary details from Part B of all Form 16s (gross salary, deductions, exemptions). Cross-check TDS details in Part A against your Form 26AS and Annual Information Statement (AIS). 'Use Form 26AS as the backbone for reconciliation. Filing your ITR based on consolidated income ensures transparency and helps you avoid tax notices later,' Chheda advises. Kinjal Bhuta, CA and secretary of the Bombay Chartered Accountants' Society, adds, 'When claiming deductions like 80C (investments) or 80D (health premiums), make sure you don't double-count them. These limits apply to your total income, not to each job separately.' Handle TDS mismatches proactively After a jobswitch, it's not unusual to see differences between TDS in Form 16 and what's reflected in Form 26AS or AIS. 'If there's a mismatch, reach out to the employer and request them to revise their TDS return (Form 24Q),' says Shah. Sujit Sudhakar Bangar, founder of recommends that taxpayers always file their ITR as per the TDS credits in Form 26AS. 'If the employer doesn't rectify the error, you may need to pay the shortfall to avoid a tax demand later,' he warns. Report lump-sum benefits correctly Benefits like gratuity, PF withdrawals, and leave encashment during a job switch need careful reporting. Gratuity: Tax-free up to ~20 lakh for eligible employees. Leave encashment: Exempt up to ~25 lakh for non-government employees. PF withdrawals: Tax-free only after 5 years of continuous service; otherwise, taxable. 'A common mistake is ignoring these receipts or reporting them incorrectly, which can invite scrutiny,' Bhuta cautions. Checklist for job switchers filing ITR -Collect Form 16 from all employers. -Reconcile income and TDS with Form 26AS/AIS. -Avoid double-claiming deductions like 80C, 80D, or HRA. -Report gratuity, PF withdrawals, and leave encashment properly. -File as per Form 26AS even if there's a mismatch with Form 16. The Bottom Line Switching jobs mid-year adds complexity to tax filing. But a little diligence now, consolidating Form 16s, checking Form 26AS, and correctly declaring lump-sum benefits can help you avoid unnecessary notices and penalties. 'A few extra steps today can save you major headaches tomorrow,' Shah says.
Mint
26-06-2025
- Business
- Mint
CBDT orders processing of late returns, refunds filed upto March 2024
New Delhi: The Central Board of Direct Taxes (CBDT) has ordered the processing of late tax returns and their refunds in cases where taxpayers have filed a request for condoning delays and reported their income by the end of March 2024. CBDT said in an order that returns of income filed under section 119 of the Income Tax Act under which delays are condoned, could not be processed within the statutory deadline due to a technical reason and hence refunds were not granted. The tax authority said grievances were filed regarding non-receipt of refund due to non-processing of these returns in some cases. The tax policy making body said it has now decided to relax the timeframe for processing these returns. Intimation of processing these returns will be sent to the assessees by the end of March 2026. Experts said that in certain cases, due to genuine hardship, taxpayers are unable to file their income tax return within the specified due dates. As a result, such taxpayers are either unable to claim refund or are denied the opportunity to carry forward the losses incurred, explained Deepesh Chheda, Partner, Dhruva Advisors, a tax and regulatory services firm. Recognizing this, CBDT in 2015 allowed taxpayers facing genuine hardships to apply for condonation of delay in filing the return and where condonation is granted, the taxpayer could file a tax return and claim refunds or carry forward losses, subject to riders. Such relief is restricted to cases involving genuine hardship and is not available generally to all taxpayers, explained Chheda. However, due to technical issues, several such returns filed pursuant to the condonation were not processed within the statutory timeline, and no intimation was issued. Consequently, refunds were not granted to such taxpayers, prompting representations from affected taxpayers, added Chheda. 'The Board has now relaxed the time limit for processing of valid returns and directed that such returns where the time limit for issuing intimation has expired, shall now be processed. The intimation in respect of such returns shall be issued to the concerned taxpayers on or before 31 March 2026, thereby enabling genuine taxpayers to receive their refunds,' added Chheda. The move comes after finance minister Nirmala Sitharaman earlier in the week reviewed the performance of the Income Tax department including the pace of refunds and grievance resolution. Sitharaman also then directed officials to monitor disposal of grievances on its online platforms, identify recurring issues and strengthen redressal mechanisms accordingly, Mint reported on 23 June. CBDT's latest circular is a welcome relief for taxpayers whose delayed returns were accepted under condonation provisions but remained unprocessed due to time limitations, said Amit Maheshwari, Tax Partner at AKM Global, a tax and consulting firm. 'This move brings much needed closure and certainty, especially for those who were previously left in a state of uncertainty despite filing valid returns,' said Maheshwari.
