All the individuals who don’t require their books of accounts to be audited need to file their return by the end of this year. The income tax return for the year ended 31st March, 2020 has to be filed by 31st December, 2020.
Introducing a new feature, ‘Jhatpat Processing‘ with the tagline “File Karo jhat se, processing hogi pat se“, the Income Tax Department has allowed handling of the returns filed online on a real time basis and providing taxpayers an instant acknowledgment.
This feature can be utilized by taxpayers whose ITR is verified, the bank account is pre-validated, and there are no arrears, income discrepancy, TDS, or challan mismatch. One can log on to www.incometaxindiaefiling.gov.in to start the process.
One needs to ensure that they have Form 16, Form 26 AS, bank accounts at hand when filing the return.
The new return also has provisions for several new disclosures. Firstly, the stock wise details of sale for those long term capital gains that are eligible for grandfathering. Additionally, tax saving investments for FY20 made between 31 Mar and 31 July, passport number, deposits of more than Rs. 1 cr in 1 or more current account in the year, travel spends of more than Rs. 2 lakh on foreign tours, electricity expenses of more than Rs. 1 lakh in a year will have to be disclosed as well.
The Income Tax department also tweeted that more than 4 crore returns have been filed as on 25th Dec, 2020. But many professionals and taxpayers across the country have been demanding for yet another extension of the return filing deadline.
A lot of them have been citing issues like shortage of manpower and technical glitches on the income tax website which is making it difficult for them to meet the 31st Dec deadline. The Income Tax Department has been sending multiple reminders to individuals to file their income tax return before the deadline.
If you fail to file your income tax return, it could lead to missing out on any eligible income tax refund, inability to carry forward any business or trading losses for set off against gains, levying penalties that could go as high as Rs. 10,000 and prosecution.