Finance Desk – The Income Tax Department has released the online utility for Form ITR-2 on July 18, giving salaried taxpayers the green signal to start filing their income tax returns.
This year, the government has extended the last date for filing returns to September 15, instead of the usual July 31. While this gives more time, chartered accountants say the delay in releasing ITR-2 and ITR-3 forms means they now have only around 60 days to complete a huge number of filings, causing a last-minute rush closer to the September 30 deadline for other compliances.
Common Problems Taxpayers Are Facing:
Errors in AIS (Annual Information Statement):
Many taxpayers are seeing wrong information in their AIS. For example, one taxpayer’s AIS showed credit card payments of ₹83 lakh, even though his card limit was only ₹2.5 lakh.
Duplicate Entries:
In cases where two people jointly sell a property, the full amount is showing up in both their AIS, leading to confusion. Even after submitting corrections, taxpayers are getting responses saying the “source is correct.”
Utility Glitches:
The ITR-2 form still has some bugs, like the wrong calculation of education cess in some cases. Chartered accountants are advising caution.
Some Good News for Taxpayers:
Faster Refunds:
Taxpayers using ITR-1 and ITR-4 are getting their refunds within a few days of filing. This is much faster than in earlier years.
More Awareness:
The income tax department is sending reminders and pushing for full disclosure, especially about foreign income and assets.
What You Should Know:
Disclose Foreign Income:
Until last year, not reporting foreign bank accounts, ESOPs, or pension accounts could result in a penalty of ₹10 lakh under the Black Money Act.
Relaxation from FY 2024-25:
From this year, if the value of unreported movable foreign assets is less than ₹20 lakh, there will be no penalty.
