The Income Tax Department announced in an official order, “To facilitate completion of pending departmental work, all Income tax Offices across India will remain open on 29, 30 and 31 March 2024.
According to an ET report, it is important for individuals obliged to deduct TDS (tax deducted at source) under income tax laws to file challan details for tax deducted under specified sections like 194M or 194-IA by March 30. Moreover, March 31st date has been fixed tax-saving investment Like Tax Saver FD, ELSS, ULIP, PPF, SCSS, NSC, and more.
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If you’re planning tax-related tasks at the end of the month, make sure the institutions you need are open. For example, while the stock market is closed on the long weekend, banks will be open on Saturday, March 30, as it is a regular working day.
Why is the Income Tax Department working on 29, 30 and 31 March?
Ankit Jain, partner at reputed CA firm Ved Jain & Associates, shed light on the logic behind the decision to keep the tax offices operational. According to him, there are important tasks that need to be addressed before the March 31 deadline, including:
- Assessment Completions: The tax department will have to complete the assessment for the financial year ending March 31, 2022, by the end of this month. Assessment orders issued after the deadline of this financial year are considered invalid.
- Revaluation Notice: The tax department is also required to send a notice for reassessment of underreported income. These notices focus on undisclosed income of more than Rs 50 lakh for FY 2016-17 and other relevant scenarios for FY 2019-20.
Jain explains that the objective of keeping the tax offices operational is to ensure timely collection of necessary information, completion of assessment and sending of reassessment notices within the stipulated time frame.
Read this also Tax deduction guide at source: Know TDS rates for various incomes in FY 2024-25 – see list
Submit ITR-U by 31st March 2024
Eligible taxpayers must submit an updated income tax return (ITR-U) for the assessment year (AY) 2021-22 (FY 2020-21) by March 31, 2024, which is the last deadline. ITR-U serves to correct under-reported or mis-reported income and any other errors in previously filed returns. Additionally, individuals who are required to file ITR as per law but have missed the due date can also file ITR-U.
Taxpayers have 24 months from the end of the relevant assessment year to file ITR-U. For FY 2023-24, individuals can submit ITR-U for Assessment Year (AY) 2021-22 and AY 2022-23.
If the errors are not rectified and the tax department discovers them independently, a penalty of up to 200% of the tax payable can be imposed. According to Section 270A of the Income Tax Act, 1961, individuals who conceal income and fail to report it can face a penalty up to 200% of the tax, effective from assessment year 2017-18.
It is important to note that while filing ITR-U, additional tax up to 50% of the total tax and interest is required. However, if ITR-U is filed after the due date of filing delayed or revised return but before completion of 12 months from the end of the relevant assessment year, the additional tax payable is 25% of the total tax and interest payable.
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