ITR Filing: The last date to file income tax return for the financial year 2022 was 31 July 2022. If you miss this deadline, you can file your return with the prescribed penalty till 31st December 2022.
ITR Filing 2022: Have you missed filing returns for FY 2022? Do not panic, you have a chance to file ITR with penalty till 31st December 2022. If you are an investor and deal in stocks and securities in the stock market, then it is necessary for you to file returns. According to income tax rules, if your investment in mutual funds, stocks, bonds or debentures exceeds Rs 10 lakh in a financial year, then you will have to inform the tax department in your income tax return. Experts say that the Income Tax Department knows everything about these high-value transactions entered on your behalf, whether you inform the department yourself or not. The Income Tax Department uses different data analysis techniques to keep track of specific financial transactions done by an individual during a year.
CA Manish Gupta says, if your investment in mutual funds, stocks, bonds or debentures exceeds Rs 10 lakh in a financial year, then you will have to inform the department in your income tax return. Even if a taxpayer tries to hide such investments from the Income Tax Department, he will not be able to do so. This is because the details of such investments will automatically appear on the income tax portal in the taxpayer’s Annual Information Statement (AIS) and Form 26AS, and the department will get the information.
Notice can come in section 143 and 148
Manish Gupta says, if a person does not file his ITR or does not provide accurate information about the investment as per the requirement, then the tax department can initiate penal action. The investor/taxpayer can get a notice under sections 143 and 148 of the Income Tax Act. By issuing a notice, the department can ask the taxpayer for different details about such investments, such as what is the source of money used for making such investments.
How to avoid income tax notice?
The assessees (taxpayers/investors) often avoid showing their source of income or show less income in ITR to reduce their tax liability. But, they do not know that the IT department has complete information about their financial transactions. Therefore, it is better to properly disclose all sources of your income and investments while filing income tax return. In such a situation, in order not to get notice on investment in shares or securities, some important things should be taken care of.
You should file your ITR before the due date.
- You should cross-check all the TDS entries and verify whether the high value transactions reported in your Form 26AS are correct or not.
- You should verify AIS before filing your ITR.
- If your investment amount during a financial year is more than Rs 10 lakh, then you should give complete details of your investment in shares and securities.
- You should ensure that the tax liability, if any, is calculated correctly and tax is paid on such transactions.
- You should keep a record of all your high value financial transactions, investments and expenses.
Tax Department’s e-campaign for compliance
CA Manish Gupta says, “In order to promote voluntary compliance of tax laws, the Income Tax Department has started an e-campaign for the convenience of taxpayers.
This campaign is focused on those taxpayers who do not file returns or there is a discrepancy/mismatch in their income details. Under this e-campaign, the tax department has sent email or SMS after verification on the basis of information received from different sources like SFT, TDS, TCS etc.
On receipt of such information, the taxpayer should give feedback even if he has filed his return correctly. With this, the taxpayer can avoid notices in future. However, if the department is not satisfied with the reply of the taxpayer on e-campaign communication, it shall process the tax return and issue a notice to him under section 143(1). On receipt of such notice, he has to pay additional tax liability on high value transactions.
