When poring over his income tax return form (ITR Filing), the great Albert Einstein is said to have cringed, “This is a question too difficult for a mathematician. It should be asked of a philosopher.” We don’t claim to understand what a philosopher really does but we’re guessing not many of you do either. (If you are a philosopher we urge you not to attempt to sue us!).
The ITR Filing Season is over
While the dreaded ITR filing season is long gone many people may be wondering whether their return forms have been assessed, accepted or rejected. And if they have been accepted how does one get to know?
Some of us may not have filed their I-T returns for the fiscal year 2016-17 yet. Earlier this year, our smiling Finance Minister introduced a provision for a penalty ceiling of Rupees 10,000 should you fail to e-file your income tax returns by the due date. Thankfully, that penalty becomes effective from fiscal year 2017-18 or the assessment year 2018-19 when you would actually be filing your ITRs for the previous year.
A new Section 234F was accordingly inserted. It states that if a person must furnish a return under Section 139 but does not do so by the due date, he would have to pay a sum of Rupees 5000 as fine for submissions on or before 31 December of the same year or Rupees 10,000 in every other case. Those earning less than Rupees 5 lakh in a year, however, do not need to pay more than Rupees 1000 by way of penalty for delayed filing of ITR.
For a detailed description of the ITR Filing income tax return process via the official income tax login portal see this page.
The due date for individuals and Hindu Undivided Families was August 5 in 2017. The due date for business entities who qualify to be audited under Sections 44AB and 115JB of the I-T Act for filing their annual ITR for the Assessment Year 2017-18 (Fiscal Year 2016-17) is 31 October, 2017.
After the individual registers and logs in to the income tax portal, she would be able to see a screen similar to the one below:
If you have forgotten to verify your returns you may not consider your e-filing ITR complete. You can complete your e-verification of ITR by clicking on “View Returns/ Forms” as shown above.
You will then be taken to the screen shown below:
Select “Income Tax Returns”, choose the relevant assessment year and then you will reach the screen shown below:
If you have a return pending verification you will be shown that information under the “Status” field above.
Click on the link that says, “Click here to view your returns pending for e-verification”.
From here on out you have 7 routes to complete your e-verification. These are:
- EVC received on Registered Mobile number and e-mail
(Generated through e-Filing portal, valid for 72 hours).
- Aadhaar OTP sent to your mobile.
- Electronic Verification codegenerated through Net Banking.
- EVC generated through Bank Account Number.
- Electronic Verification code generated through Demat Account Number.
- EVC generated Through Bank ATM.
- Verify ITR by sending ITR-V to CPC Bangalore.
Read more on e-verification here.
After verification, you will be sent a confidential email (at the email address you gave while registering) confirming the same and giving you a password protected electronic copy of your Acknowledgement by the Income Tax Department. This mail would tell you that there is no further action required to be performed by you.
Now your return would undergo a preliminary check for defects before it is sent to your I-T Assessing Officer. The time taken to receive an intimation under Section 143(1) depends upon the size of tax liability at the moment but expect to wait a month ordinarily. A notice under this section tells you whether there are minor errors, outstanding taxes to be paid by you or whether you are entitled to an income tax refund. The AO may decide to take up a case for further investigation if he so deems it expedient to do so. In that case you must be ready to respond to notices, rectification orders or orders to re-file your returns.
For more information on the types of notices you may receive click here.
If you have multiple sources of income or a large tax liability and have been sent notices intimating you of discrepancies, you may need a CA to assist with your responses. This is because the AO’s next step will depend on how satisfactorily you are able to prove your accounts and tax compliance.
We recommend that you take the help of a seasoned tax counsellor or could also look up our online tax help services. We at AllindiaITR (a product of Corwhite Private Solutions Private Limited) provide personal and commercial tax expert services to help you save on your time and money.