Latest news with #Section234A
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Business Standard
29-07-2025
- Business
- Business Standard
ITR declared invalid? CBDT offers relief for those with technical glitches
In a relief to thousands of aggrieved taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadline for processing income tax returns (ITRs) that were wrongly declared invalid by the Centralised Processing Centre (CPC), Bengaluru. Under the fresh relaxation, electronically filed ITRs up to March 31, 2024, but later marked 'invalid' will now be reprocessed and validated under Section 143(1) by March 31, 2026. This applies to returns filed for Assessment Years up to 2023–24, provided the taxpayer had verified them on time. Tax experts say this correction addresses technical glitches and procedural lapses that unfairly blocked refunds or triggered compliance issues for honest filers. Why were some ITRs marked invalid despite being filed properly? Discrepancies in form selection, verification delays, and system errors are among the top reasons, explains Suresh Surana, chartered accountant. 'A salaried person who filed ITR-1 despite having small capital gains found her return marked invalid. Her refund was delayed, and she lost deductions and faced interest under Section 234A,' he shares. Kinjal Bhuta, chartered accountant, advocate and treasurer at the Bombay Chartered Accountants Society, adds that sometimes returns filed on the due date are verified a day later due to portal lags and are then treated as invalid. 'There have been cases where even OTP-verified returns were later shown as defective. By the time the assessee realised, the deadline to fix it had passed,' she says. What does this CBDT relaxation mean in practice? According to Surana, the relief is critical as it now allows the CPC to reprocess affected returns and issue intimations under Section 143-1. 'It helps taxpayers get their long-pending refunds, plus interest. But those without PAN-Aadhaar linkage may still face blocks,' he cautions. Tarun Garg, Director, Deloitte India, calls the move a 'welcome signal' to taxpayers. 'For many senior citizens or small taxpayers, refunds are part of annual budgeting. With this circular, they might finally receive what's due,' he says. To check eligibility: -Log in to your income tax e-filing portal -Look for 'invalid return' status in your filed ITRs -If eligible, no fresh filing is needed; just wait for CPC updates Fixing the system: An implicit admission? All three experts believe the circular indicates system-level lapses at the CPC. Bhuta says, 'Technical issues are increasingly common. This is a much-needed acknowledgement and should push for better safeguards.' Surana suggests more proactive alerts and redressal options, especially for taxpayers without CAs. Garg adds, 'The system is strong but not flawless. This circular shows CBDT is willing to course-correct when automation misfires.'
Hindustan Times
22-07-2025
- Business
- Hindustan Times
ITR filing 2025 last date extended
The last date for the filing of Income Tax Returns (ITR) for the financial year 2024-25 (Assessment Year 2025-26) has been extended. while the date for the filing of the return has been extended, the payment of any due self-assessment taxes must be finished by July 31.(Reuters) The Central Board of Direct Taxes has released a new deadline for ITR filing for non-audit cases, including salaried taxpayers. The final date to file the ITR for them has now been moved to September 15, 2025, from the earlier date July 31, 2025, according to the CBDT circular. Filing beyond this date will lead to a penalty of ₹5,000 (if income exceeds ₹5 lakh) and ₹1,000 for lower income groups under Section 234F. Belated or revised returns can be filed till December 31, 2025, and updated returns (ITR-U) can be filed till March 31, 2030. However, while the date for the filing of the return has been extended, the payment of any due self-assessment taxes must be finished by July 31. If not, penal interest under Section 234A may be accrued. The extension comes after alleged delays in the availability of updated ITR forms and e-filing facilities on the Income Tax Department's portal. Apart from this, the late reflection of TDS data in Form 26AS and AIS also led to challenges for the taxpayers, who urged for extension to ensure precise filing. The deadline extension also leads to a positive reflection on the refund interests. Taxpayers who are due refunds may get up to 33 per cent higher interest under Section 244A. This is because the interest is accrued from April 1, despite the extension. This interest is taxable and must be reported in the ITR. The Income Tax Department introduced a new Excel-based offline utility for filing the Income Tax Return-1 and Income Tax Return-4. Under this utility, taxpayers will be able to validate their returns by creating a JSON file and uploading it to the e-filing portal.
News18
14-07-2025
- Business
- News18
ITR Filing Last Date 2025: Is July 31 Deadline For Tax Filing? Check Extension Details
Tax experts confirm that with the extension of the ITR due date under Section 139(1), no interest under Section 234A will be charged if both the return and the self-assessment tax are paid on or before September 15, 2025. 'Accordingly, to facilitate a smooth and convenient filing experience for taxpayers, it has been decided that the due date for filing of ITRs, originally due on 31st July 2025, is extended to 15th September 2025," CBDT said in the press release.
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Business Standard
27-05-2025
- Business
- Business Standard
CBDT extends ITR filing deadline to September 15 amid major changes
In a relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the last date for filing the income-tax return (ITR) for assessment year (AY) 2025-26 from July 31 to September 15. The decision follows revisions to the structure and content of the notified ITR forms, which have provisions and several new reporting requirements introduced by the Finance Act, 2024. 'In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of Income Tax Return (ITR) utilities for Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing returns,' the CBDT said. In a statement to the media on Monday, the CBDT acknowledged that credits from statements on tax deducted at source (TDS), due for filing by May 31, would begin reflecting in early June, limiting the window for return filing without an extension. ITR-1 now includes an option to report long-term capital gains up to ~1.25 lakh. ITRs 2, 3, 5, and 6 require more detailed disclosures under the 'Capital Gains Schedule' with reporting required for transactions before and after July 23, 2024, owing to different tax implications following the changes made last year in the tax law. 'This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process,' the CBDT said. Tax experts welcomed the move, calling it a step to ease taxpayer compliance amid evolving requirements. 'The ITR forms notified for FY2024-25 incorporate enhanced reporting, such as splitting capital gains before and after July 23, 2024, following rationalisation measures in the Finance Act,' said Sonu Iyer, partner and national leader, People Advisory Services (Tax), EY India. 'This provides taxpayers adequate time to comply,' Iyer added. Vivek Jalan, partner, Tax Connect Advisory Services LLP, said: 'Every year, TDS/TCS (tax collected at source) credits are reflected only by mid-June, leaving taxpayers just about six weeks for compliance. Extending the deadline to September 15 alleviates this hardship.' Jalan urged the government to consider a permanent extension of the due date to August 31 under the proposed Income Tax Bill 2025, which is expected to come into effect from April 1, 2026. While the extension offers much-needed relief to salaried individuals and small businesses not subject to audit, experts said the press release was silent on whether the due date for tax payment had also been extended and whether interest under Section 234A would apply. 'In the absence of clarification, there is a possibility that interest under Section 234A may apply if there is a tax liability and the return is filed after July 31 without full payment. To avoid this, taxpayers should pay any self-assessment tax by July 31,' said Gaurav Makhijani, associate partner, Rödl & Partner. Timely payment will avoid interest under Section 234B for shortfalls in advance tax, he said.
