An income tax notice is an official communication from the income tax department. It is not a cause of worry if an individual reads the notice carefully and corrects the defects mentioned in the notice. Read here to know in detail what do different types of notices actually mean and by when they could be served.
The income tax laws allow an individual to file updated return. The concept of updated return was introduced in the Union Budget 2022 to allow individuals rectify their mistake made while filing ITR or to allow one more chance to individuals to file ITR if they have not filed ITR previously.
Income Tax Returns filing: As of now, 13.6 per cent of taxpayers have left the lower income strata and migrated upwards, as compared to AY12, showed a report by SBI.
If an individual has missed the deadline of July 31, 2023 to file their income tax return (ITR) for FY 2022-23, then he/she may still file a belated ITR by paying a penal fee. However if an individual's income is below the basic exemption limit then there is no penal fee for filing belated ITR.
The duration for the process of the Income Tax Return refund depends on various factors, including the processing time of the tax authorities, accuracy of the information provided, and the mode of refund chosen.
The number of income tax returns filed between April-June 2023 nearly doubled to over 1.36 crore over the previous year, indicating early filing by taxpayers to avoid last-minute rush. In July, which is the last month of I-T return filing, over 5.41 crore returns were filed, taking the total number of filing to over 6.77 crore by the month-end.
The Central Board of Direct Taxes, via a notification in July 2022, reduced the time limit for ITR verification from 120 days earlier to 30 days. The new law is effective from August 1, 2022, and will be applicable to all the ITRs filed on or after August 1, 2022. This includes ITR filed on or before July 31, 2023. However, missing the 30-day ITR-filing deadline can cost you Rs 5000.