Latest news with #Income-taxDepartment
Mint
11-08-2025
- Business
- Mint
ITR FAQs: What are the modes of filing? Can you file returns after due date? Top 10 questions answered
Filing an Income Tax Return (ITR) is an essential yearly financial task for every eligible individual. Whether you are a salaried employee, self-employed, freelancer, or business owner, you may often face several doubts about the process, from the ways of filing the ITR form to understanding penalties, missing due dates, and more. To make things easier, here are some key frequently asked questions (FAQs) from the Income Tax Department to help you navigate ITR filing conveniently. An income tax return is a prescribed form used to report the details of income earned by a person in a financial year, along with taxes paid on that income, to the Income-tax Department. It also allows a taxpayer to carry forward losses and claim refunds from the income tax department. According to the Central Board of Direct Taxes (CBDT), ITR can be filed in any of the following ways: (i) Filing the return on paper. (ii) Filing the return electronically under a digital signature; (iii) Filing the return online and transmitting the data along with the electronic verification code. (iv) Filing the return electronically and thereafter submitting the verification of the return in Return Form ITR-V (acknowledgement of filing the return of income). ITR forms are attachment-free, so taxpayers are not required to attach any documents, such as proof of investment, TDS certificates, etc, with their income tax return, whether filed manually or electronically. However, the taxpayer should keep these documents and produce them before tax authorities when requested during assessments, inquiries, or other proceedings. The Income Tax Department has enabled an independent portal for e-filing income tax returns. To file ITR online, taxpayers can log on to The Income Tax Department offers a free e-filing utility (such as Java and Excel) for generating and submitting e-returns electronically. The utility aims to make the ITR filing process simple and easy to use and contains instructions on how to use it. You can claim the excess tax as a refund by submitting your income tax return. It will then be credited to your bank account through ECS transfer. There is no disadvantage to filing ITR. On the contrary, failing to file your return despite having taxable income will make you liable for penalties and prosecution under the Income Tax Act. The Income Tax Act allows taxpayers to file an ITR after the due date, which is called a belated return. Any person who fails to submit a return of income within the period allowed under section 139(1) or within the period specified in a notice issued under section 142(1) may submit a return for any previous year. However, a belated return attracts late filing fees under section 234F. According to Section 234F of the Income Tax Act, a late filing fee of ₹ 5,000 shall be payable if the return is furnished after the due date specified under Section 139(1). However, if the person's total income does not exceed ₹ 5 lakh, the fee shall be ₹ 1,000. In case of queries on e-filing of return, taxpayers can contact 1800 103 0025. Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.
Time of India
01-07-2025
- Business
- Time of India
You can know what final income tax scrutiny order contains even before it is issued
What did CA post on X about the current Income Tax Scrutiny process? Can you actually see the final order before it is issued? What is Income Tax Scrutiny? The Income Tax Department recently highlighted a Chartered Accountant 's post on X regarding the working of the current income tax scrutiny process. The Income Tax Department stated that the post by the CA highlights the transparency and accountability measures in place, such as selection of only a minuscule percentage of cases for scrutiny, DIN-based verifiable notices, the faceless assessment system, ample opportunity for taxpayers to present their cases, and taxpayer safeguards in the form of High-Pitched Assessment Committees to the post on X, Pradeep Goyal, a chartered accountant, said the following:Scrutiny is conducted every year for very small % of total returns filed. Notices are issued under DIN so no scope of sending fake notices in order to blackmail you. Check the authenticity of the notice using DIN at the are two types of selection- CASS & Compulsory (limited or full).Most of the cases are under limited scrutiny wherein officers limit herself to those specific is conducted in a totally faceless manner and no scope of bribe and harassment. You will get ample opportunities to reply. Draft order will be issued before final pitched assessment committee is there whom you can approach if unjustified additions are post by the CA further stated, 'Don't pay money in the name of officers to anyone. Scrutiny is totally faceless and assessing officers are unknown for everyone. Assessment is conducted by assessment units.'One of the interesting points is that the taxpayer will know that the final scrutiny assessment order is contained even before it is issued. This is because the Income Tax Department will issue a draft order before the final Kumar Madaan, a practising chartered accountant, says, 'Under the faceless assessment regime, the Income-tax Department is required to issue a draft assessment order or show cause notice where any variation prejudicial to the interest of the assessee is proposed. This provision ensures that the assessee is afforded a fair opportunity to respond before the final order is passed. It is a welcome safeguard aligned with the principles of natural justice. The law mandates that a reasonable opportunity of being heard must be provided to the assessee. Upon receipt of the show cause notice or draft assessment order, the assessee (or their authorised representative) may also request a personal hearing, including the option to make oral submissions through video conferencing before the designated income-tax authority or unit.'Adding further, he said, 'Failure to grant such an opportunity for personal hearing, particularly when requested, may amount to a violation of the principles of natural justice and could render the assessment order susceptible to legal challenge. However, in practice, it is often observed that Assessing Officers (AOs), having already formed a predetermined view at the stage of the draft order or show cause notice, proceed to finalise the assessment without adequately considering the assessee's objections. This undermines the very objective of the provision and compels the assessee to seek appellate recourse against such final assessment orders.''This trend is contributing to a substantial buildup of cases before the Commissioner of Income-tax (Appeals), further straining the already burdened appellate machinery. With significant delays in the disposal of appeals at the CIT(A) level, genuine taxpayers are often left waiting for years to obtain relief. Further, a primary procedural concern arises from the timing of these notices. In many instances, show cause notices and draft orders are issued toward the end of the limitation period for completing the assessment, thereby leaving insufficient time for meaningful engagement by both the AO and the assessee. This last-minute approach compromises the quality of the assessment and defeats the intended objective of a fair, participative, and transparent process,' the CA he said, 'There is a pressing need to institutionalise timely and continuous communication between the Department and the assessee throughout the assessment cycle, rather than deferring critical interactions to the final days before the time bar.'The Income Tax Department issues notices under Section 143(2) to the taxpayer when his/her income tax return is selected for scrutiny assessment. The income tax notice can also be issued under Section 143(3) for a detailed assessment or detailed assessment is carried out to confirm the correctness and genuineness of various claims, deductions, etc., made by the taxpayer in income tax return. The objective of this scrutiny assessment is to ensure that you have filed the tax return with the correct income and paid the tax accordingly.
