As the last date for filing income tax returns is ending tomorrow, i.e., 31st July 2022, a Sunday, the question before the taxpayers and the tax practitioners is that if a return filed on Monday would be treated as within the due date or not. And if a late fee is payable on such returns?
Though the income tax office is normally closed on Sunday, the taxpayers are not required to visit the office for the purpose of filing their income tax returns. So, whether the office is closed or open doesn’t matter for the purpose of filing the income tax returns in general.
The Income Tax Department – Centralized Processing Cell (ITDCPC) issued a set of FAQs on 06.08.2012 which provides guidelines with regard to the various issues related to e-filing.
The FAQ on Page No. 4 of ITDCPC FAQ on “E FILING AND CPC” dated 06-08-2012 clarified that such returns would be treated as filed within the due date.
The question was, “The last date of filing falls on Saturday or Sunday. Can I file my e-return on a subsequent Monday?” The question was answered in the affirmative., “Yes.”
In 1992, when the Central Board of Direct Taxes (CBDT) received representations seeking clarifications as to whether the assessee could file a return of income/loss under the Income-tax Act, 1961, on the next working day following a holiday and claim it to have been filed within the statutory time limit.
Following this, the Board issued a circular clarifying that “where the last day for filing return of income/loss is a day on which the office is closed, the assessee can file the return on the next day afterward on which the office is open and, in such cases, the return will be considered to have been filed within the specified time limit.”
The Income Tax Act, 1961 provides a number of penal provisions to curb tax evasion and penalize the defaulters in case of non-filing of returns and non/short payment of income tax.
A penalty of Rs 5,000 will be charged for the delay in filing returns if the total income to be reported exceeds Rs 5 lakh. For small taxpayers, if the total income of the person is less than Rs 5 lakh, then the fee payable is up to Rs 1,000.
After December 31st of the relevant assessment year, one cannot voluntarily file ITRs. After that, if and when the income-tax department picks up your income and tax details available for scrutiny, the department will direct the defaulter on how to comply with the mandatory provisions by paying penalties and interest.
Section 234 of the Income-Tax Act deals with penal interests that are levied for delays in paying taxes on time.
Support our journalism by subscribing to Taxscan Premium. Follow us on Telegram for quick updates.
