The Central Board of Direct Taxes (CBDT) has given a big relief to the taxpayers. CBDT has extended the deadline for filing income tax returns for the financial year 2021.
New Delhi. The Central Board of Direct Taxes (CBDT) has given a big relief to the taxpayers. CBDT has extended the deadline for filing income tax returns for the financial year 2021. TDS statement for the fourth quarter of the financial year 2020-21 has been extended till June 30. Earlier the last date for filing TDS was May 31. Sujit Bangar, Founder, TaxBuddy.com said, “This is a big relief for the deductors of TDS as a lot of records and data have to be reported correctly in these returns.”
According to the department’s circular, along with extending the last date for filing TDS till June 30, CBDT has also extended the issuance of Form-16 from June 15 to July 15, 2021.
Key points to remember while filing TDS return-
1) It is mandatory to give correct information about all your sources of income while filing income tax return. This includes earnings from your first employer, current employer, investments, etc. If information about any source is not given, it will be clearly visible in the TDS certificate and Form 26AS. In doing so, the Income Tax Department can send a tax demand notice after investigation so that the taxpayer can deposit the additional outstanding tax.
2) If someone has deducted more than Rs 50,000 TDS in every year and that person has not filed TDS in the last two years, then the government will charge more TDS while filing the return. In Budget 2021, a new section 206AB was introduced to deduct TDS at a higher rate on cases having definite nature of income, in which return of income for the last two years has not been filed and TDS deducted in every year exceeds Rs 50,000 . The rate of TDS shall be over and above the limits of 1. Double the rate specified under the relevant section/provision 2. Double the applicable rate/ rates or 3. 5% rate.
3) If the amount of tax payable in cash at the time of filing ITR exceeds Rs 1 lakh, then penal interest under section 234A will be applicable from the original due date of filing ITR.
4) A taxpayer has to give information about all his bank accounts while filing income tax return. However, this does not include inactive bank accounts. Taxpayers can also choose the bank account in which they want to receive the tax return. Generally, taxpayers assume that all donations received by them are 100% tax free. However, this is not correct. Only 50 percent tax exemption is available on some donations.
