Income Tax Department cancels long Good Friday weekend from March 29-31 for staff; here’s why | India Business News

Long weekend cancelled for revenue tax division: The approaching finish of the monetary 12 months 2023-24 brings with it deadlines and obligations for taxpayers throughout the nation. However, with March 29 falling on Good Friday and March 30 being a Saturday, adopted by March 31 on Sunday, it initially gave the impression to be a long weekend for many. However, in a transfer geared toward facilitating taxpayers, the Income-tax division has opted to cancel this prolonged break for its staff.
The Income-tax division introduced in an official order, “To facilitate completion of pending departmental work, all the Income Tax Offices throughout India shall remain open on 29th, 30th and 31st March 2024.”
According to an ET report, it can be crucial for people obligated underneath revenue tax legal guidelines to deduct TDS (Tax Deducted at Source) to file challan statements for tax deducted underneath specified sections, like 194M or 194-IA, by March 30. Moreover, March 31 marks the deadline for tax-saving investments corresponding to tax saver FDs, ELSS, ULIPs, PPF, SCSS, NSC, and extra.

ALSO READ | Offline ITR-1, 4 varieties FY 2023-24: Income tax division releases new varieties for AY 2024-25; know the main points right here

If you are planning tax-related duties on the month-end, make sure the establishments you want are open. For instance, whereas the inventory market is closed on the long weekend, banks shall be open on Saturday, March 30, as it is a common working day.

Why is the Income Tax Department engaged on March 29, 30, and 31?

Ankit Jain, Partner at Ved Jain & Associates, a good CA agency, make clear the rationale behind the choice to maintain tax workplaces operational. According to him, there are crucial duties that demand consideration earlier than the March 31 deadline, together with:

1. Assessment completions: The tax division should full assessments for the fiscal 12 months ending on March 31, 2022, by the top of this month. Assessment orders issued after this fiscal 12 months deadline are thought of invalid.
2. Reassessment notices: The tax division can also be required to ship notices for reassessment of incomes suspected to be underreported. These notices give attention to undeclared incomes exceeding Rs 50 lakhs for FY 2016-17 and different related eventualities for FY 2019-20.

Jain explains that maintaining tax workplaces operational goals to make sure well timed assortment of important info, completion of assessments, and dispatch of reassessment notices inside the set deadlines.

ALSO READ | Tax Deducted at Source information: Know TDS charges for varied incomes in FY 2024-25 – test checklist

Submit ITR-U by March 31, 2024

Eligible taxpayers should submit an up to date revenue tax return (ITR-U) for Assessment Year (AY) 2021-22 (FY 2020-21) by March 31, 2024, which marks the ultimate deadline. ITR-U serves to rectify underreported or misreported revenue and another errors in beforehand filed returns. Additionally, people required by legislation to file ITR however missed the due date can even file ITR-U.

Taxpayers have a window of 24 months from the top of the related evaluation 12 months to file ITR-U. For the monetary 12 months 2023-24, people can submit ITR-U for Assessment Year (AY) 2021-22 and AY 2022-23.

If errors usually are not rectified and the tax division discovers them independently, penalties of as much as 200% of the tax payable may be imposed. As per Section 270A of the Income-tax Act, 1961, people who conceal revenue and fail to report it could face penalties of as much as 200% of the tax, efficient from the evaluation 12 months 2017-18.

It’s necessary to notice that when submitting ITR-U, an extra tax of as much as 50% of the combination tax and curiosity is required. However, if ITR-U is submitted after the due date for submitting a belated or revised return however earlier than the completion of 12 months from the top of the related evaluation 12 months, the extra tax payable is 25% of the combination tax and curiosity payable.