RTI filing: Which tax return form is applicable to you for the 2021-22 financial year?
Which ITR form concerns you?
The important question is which ITR form should be used and by whom. Although instructions for filing ITR forms for fiscal year 2021-22 are not yet available, details based on previous year’s instructions and ITR forms for fiscal year 2021-22 are summarized below:
Consequences of late declaration/non-declaration
If the ITR is not filed by the due date which is currently July 31, 2022 (for salaried employees), a penalty ranging from Rs 1,000 to Rs 5,000 will be imposed and must be remitted before the ITR can be deposit. This tax or penalty must be paid even if the tax liability is nil. In addition, in the event of late filing, taxpayers will also not be able to carry forward certain losses for offset in future years.
In addition, to be able to opt for the new preferential tax regime, you must file your ITR no later than July 31, 2022.
If you did not file an ITR (original or late) within the time limits set out in the Income Tax Act, you may now file an updated ITR under Section 139(8A) of the Law within 2 years of the end of the relevant tax year. . The updated ITR can be filed if you meet the conditions mentioned in the aforementioned article. However, you will have to pay an additional tax of 25% or 50% on all income tax and interest payable, as applicable. This would be in addition to applicable income tax, interest and fees payable in the event of late payment of taxes and/or filing of ITR.
It is also necessary to validate the information entered by the tax authorities in the annual information declaration (AIS) before filing the ITR for the financial year 2021-22 in order to avoid receiving notices of mismatch of income / taxes to a later date, which would lead to lengthy litigation.
(The opinions expressed are personal. The author is Tax Partner, People Advisory Services, EY India. Akshay Sharma, Manager, People Advisory Services, EY India contributed to this article.)