To-Do list after filing your ITR

The immense pressure of the due date is finally over. You have filed your ITR and now it’s time to sit back and relax. But wait, before you get too comfortable, there are still a few things on the checklist that you may need to tick off first. What are these things? Let’s find out

Verify your ITR

ITR filing is not the last step of the process. For your ITR to be processed, you need to verify it. Yep, note that without verifying your ITR, it will not be considered valid and you will also not receive your refund.

Now, instead of 120 days, you only have 30 days to verify your ITR from the date of filing it. That’s right the time limit to verify ITR has been reduced to 30 days w.e.f 1st August 2020. However, this change will not apply retrospectively. Meaning, that if you have filed your ITR before 1st August 2022, you still get 120 days to verify it

You can choose to verify your ITR electronically, in which case you can do it via Aadhaar OTP, net banking and many other methods. However, if you’re unable to verify your ITR electronically, you can send a signed copy of ITR-V to CPC Bangalore. 

Bottom line? Verify your ITR if you haven’t done it already.

Keep an eye out for notices and intimations

No, this is not to scare you into thinking that a scary notice from the ITD is on its way once you have filed your ITR. However, it is important to stay alert.
You will receive an Intimation under section u/s 143(1) which will include details about your TDS deducted, Total tax paid, and any deductions that you may have claimed. If there’s no mismatch in the calculation made by you and the one made by the ITD, you have nothing to worry about.
However, in case there’s a mismatch, the intimation will let you know about the same and you will have to make correction actions within the stipulated timeline.
One of the most common scenarios of mismatch is when you may have more tax liability than you thought. If you agree with the calculation of the ITD you can go ahead and pay the remaining tax. However, if you disagree with the calculation, you can respond accordingly on the new Income Tax Portal.
This year, the ITD is also sending an intimation regarding refund and if it feels that you have claimed more deductions than what you had declared to your employer. In such a scenario, you can either agree with the intimation and revise your return or you need to confirm that the deductions you have claimed are correct.

File Revised Return

If you find any error or discrepancy in your original return, you can rectify the same and file a revised return u/s 139(5). Such errors can include
– Any mistake in personal information like address, residential status etc
– Wrong ITR Form
– Missed reporting income sources
– Errors in carrying forward losses
– Mistakes in deductions claimed and so on.

Once you file a revised return, it will substitute your original return, and don’t forget that you also need to verify your revised return as well within 30 days of filing it.
Alternatively, if you receive a notice from the ITD regarding any errors that you may have made in your original ITR, you will have to correct the same and file a revised ITR. You can file a revised return before the completion of three months of the relevant  Assessment Year. So, for AY 2022-23, you need to file your revised return on or before 31st December 2022.

Track your ITR

 Once you have filed and verified your ITR, you can track its status on the Income Tax Portal to check whether it has been processed or not. Processing of ITR can take anywhere from 1 day to 45 days, however, in some cases it can take longer too. If you feel that it is taking too long for your ITR to get processed, you can raise a grievance on the Income Tax Portal. 

File Belated Return

This is for all those who snoozed through the due date of filing ITR. In case you’re one of them, it is time for you to buckle up and file your belated return u/s 139(4). You can file a belated return till 31st December of the relevant Assessment Year. So if you haven’t filed your ITR for AY 2022-23, you can file a belated return by 31st December 2022. But wait! Remember that filing a belated return comes with consequences. What are they? Let’s take a look

Interest u/s 234A

Simple Interest @ 1% of tax liability per month or part thereof will be levied if you file a belated return. The calculation of interest will be from the date after the due date until the actual date of filing. For example, the due date for filing ITR for AY 2022-23 was 31st July 2022. Now, if you file a belated return on 2nd October 2022, you will have to pay interest for 3 months. So, the earlier you file it, the lesser penalty you will have to pay.

Late Filing Fees u/s 234F

If you file a belated return, you may have to end up paying a late filing fee of upto INR 5,000. However, it will only be applicable if your income is above the basic exemption limit. 

Inability to carry forward losses

 You can set off your losses against the current year’s incomes while filing a belated return. However, you will not carry forward your losses incurred except for house property loss. 

Inability to claim certain deductions/exemptions

Filing a belated return also prevents you from claiming deductions/exemptions u/s  10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE. 

Inability to change tax regime while filing ITR

Ordinarily, at the time of filing ITR, you can choose to opt for the New Tax Regime. However, you can not do the same while filing a belated return.

So, there you go, your to-do list after filing your ITR. And hey, if you are yet to file your ITR, do it at the earliest to minimize your penalty.