Deadline looms: Last-minute ITR filing tips for taxpayers

Filing returns near the deadline runs the risk of missing disclosures and inviting scrutiny

- 

The deadline for filing income tax returns (ITR) is drawing near. Although the Central Board of Direct Taxes has extended the due date from 31 July to 15 September, experts believe no further relief is likely.

Prakash Hegde, chartered accountant at Acer Tax & Corporate Services, said, "Another extension would create a cascading impact on returns requiring audits. With the audit deadline fixed at 30 September, tax professionals are already under pressure." Leaving tax filing until the last minute carries its own risks. Important disclosures might be overlooked, or supporting documents may be unavailable. New regulations can also confuse taxpayers.

For instance, equity capital gains up to ₹1.25 lakh can be reported in ITR-I as they are exempt from tax.

"Incorrect form selection triggered 1.65 lakh scrutiny cases under Section 143(2) this year. Say someone used ITR-1 when equity gains are below 1.25 lakh but there are losses to carry forward or they have foreign assets will render the return defective," said CA Bhawna Kakkar, founder, Kakkar & Co.

Rushing can also cause you to miss mandatory disclosures. Schedule FA (Foreign Assets) requires details such as acquisition cost, current value, peak value, location, and income from foreign assets held during the year. Schedule AL obliges taxpayers with income above tl crore (raised from t50 lakh this year) to report all assets and loans used to acquire them.