STORY OUTLINE
This is the second time this financial year the government has extended the deadline of filing ITR for individuals whose accounts are not required to be audited.
The ITR filing deadline has been extended due to the many technical issues related to the government’s newly launched tax filing portal.
The deadline of filing belated/revised ITR has been extended by two months to March 31, 2022.
ITR filing deadline for FY 2020-21 extended to December 31, 2021
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The government has once again extended the deadline to file income tax return (ITR) for FY 2020-21 by three months to December 31, 2021 from September 30, 2021. The deadline has been extended due to glitches on the new income tax portal which had made it difficult for scores of taxpayers to complete their ITR filing process.
This is the second time this financial year the government has extended the deadline of filing ITR for individuals whose accounts are not required to be audited. Earlier, due to the second wave of the Covid-19, the ITR filing deadline was extended by two months from usual deadline of July 31 to September 30, 2021.
As per the press release issued by the Central Board of Direct Taxes (CBDT), “The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31st July, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th September, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st December, 2021.”
Sujit Bangar, Ex-IRS officer and founder, Taxbuddy.com, an ITR filing website says, “As we know, the original due date of July 31, 2021, stands extended to December 31, 2021. If tax liability to be paid is less than Rs 1 Lakh, then there won’t be interest u/s 234A for ITRs being filed before Dec 31, 2021. The catch is that interest u/s 234A would be charged if the outstanding tax liability is Rs 1 Lakh or more. It will be levied from August 1, 2021 onwards till date of filing ITR. Therefore, it’s advisable to compute tax working immediately even if ITR may be filed later. This may help us in saving interest.”
Along with this, government has also extended the deadline to file belated and/or revised ITR by two months from January 31, 2022 to March 31, 2022. “The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, as extended to 31st January, 2022, vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st March, 2022,” stated the CBDT press release.
Tech issues in the new e-filing portal
ET online had reported earlier that the ITR filing deadline may have to be extended beyond September 30, 2021 due to the glitches in the new income tax portal.
The newly launched tax filing portal of the tax department was marred with technical issues from day one its launch. Many tax filers were finding it difficult to file their returns using the portal. Various stakeholders complained of issues faced during different stages of the filing process. Some taxpayers even complained that interest and late fee was charged while filing ITR after July 31, 2021 (the deadline which was extended to September 30, 2021).
The government had earlier extended the deadline for receiving Form 16 from the employers twice first from June 15, 2021, to July 15, 2021, and then again to July 31, 2021. This had left exactly two months for the individuals to file their ITR. However, the new portal being slow had made it difficult for taxpayers to file their returns.
Missing the ITR filing deadline would have had penal consequences. A late filing fee of Rs 5,000 would be levied if the ITR is filed by an individual after the expiry of the deadline.
Do keep in mind that government has also extended the deadline of filing belated ITR by one month from new deadline of December 31, 2021, to January 31, 2022. If the ITR is not filed by January 31, 2022, then the individual will not be able to file ITR for FY 2020-21, unless a notice is issued by the income tax department.
A late filing fee of Rs 5,000 along with penal interest at the rate of 1 per cent per month will be levied on the non-payment of tax dues in this case.
Other income tax deadlines extended
As per the press release, the CBDT has also extended various other deadlines related to ITR filing:
1. The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021, as extended to 31st October, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th January, 2022;
2. The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October, 2021, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st January, 2022;
3. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th February, 2022;
4. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 28th February, 2022;