Then the Income Tax Department processes it. Sometimes even after verification, processing takes more time than usual.

Lakhs of taxpayers are preparing for the Income Tax Return (ITR) filing deadline of 15 September. But keep in mind, just filing the ITR is not enough. It is also necessary to verify it. Then the Income Tax Department processes it. When the processing is complete, a notification of ‘Processing Complete’ appears on the portal. If you do not e-verify within 30 days of filing, the return becomes invalid. This may delay the refund and may also cause other problems.

Why does processing take so much time?

Sometimes, even after verification, processing takes more time than usual. Tax and investment expert Balwant Jain says that after the ITR is verified, the department checks the accuracy of the information given in it and the errors in tax calculation. This process can take from a few hours to 6 months. It all depends on the complexity of your sources of income.

For example, ITR-1 is usually processed quickly as it does not contain capital gains or business income. However, if you have earned capital gains from shares or mutual funds, then it may take longer for the ITR to be processed.

Main reasons for delay in processing

According to Jain, ITR processing usually runs on autopilot. If your declaration matches the annual payment shown in Form 26AS and Annual Information Statement (AIS), then processing is done smoothly. But in cases of capital gains or business income, both these forms (26AS and AIS) have to be matched, which is time consuming.

If the TDS amount does not match in both these forms, then the ITR is not processed. Apart from this, providing wrong bank account details or difference in PAN and Aadhaar card information can also delay processing.

Processing not done even after verification?

Once the taxpayer files and verifies the ITR, the responsibility of processing it rests entirely with the Income Tax Department. If there is a difference between your income declaration and the department’s records, you will receive a notice regarding this. After this, you will have to make the necessary changes in your ITR.

Suppose you are getting interest from fixed deposit and you have not disclosed it in ITR, then you may get a notice. To avoid this, Jain advises that you can adopt two methods. One is to show interest income on year-by-year basis (this is the common method). For this, you can get a certificate of interest from the bank every year or you can take the data from AIS and enter it in ITR. The second method is ‘receipt basis’. Show the income of FD only when you get the full amount after maturity.

ITR may also be rejected

Remember, the Income Tax Department can also reject the ITR, but before doing so, it will send a notice of ‘Defective Return’ to the taxpayer. Jain explains, “The taxpayer will be given a chance to correct the mistake. If he does not correct the mistake, then only the ITR can be rejected.”

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Explain that in FY2021-22, taxpayers whose accounts are not audited were to file income tax returns by 31 July 2022. If such people fail to file ITR by July 31 and their income is taxable, then they will have to pay a fine of Rs 5000.

Those who get salary or salary had to file ITR by July 31. According to the report of The Economic Times, those filing ITR after July 31 will be charged a late fee of Rs 5000 and there is an option to file ITR with late fee till December 31, 2022. This late fee is deposited in the government revenue.

According to the Income Tax Department data released in the last financial year, around 5.9 crore ITRs were filed till December 31, 2021.

Will the last date to file ITR be extended?

According to Income Tax India’s Twitter, 67,97,067 people filed returns till 11 pm on July 31 and 4,50,013 people till one hour before tweeting. Please note that this is only one day’s data. According to official data, till July 30, more than 5.1 crore Indians had filed returns.

While talking to the media, some experts had also told that the date can be extended only in cases like there is a technical fault, the website hangs again and again. Revenue Secretary Tarun Bajaj had also said that there is no plan to extend the date this year.

These people have to file returns by October 31

The date of filing ITR is different for account holders whose accounts are audited. Such persons have to file the return by 31 October, failing which the government can impose a fine.

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In such a situation, if you have not filed ITR yet, then do it as soon as possible. But, experts also advise to be alert here. Often people make a mistake in filing ITR in a hurry. It is important to keep in mind 8 things in return filing.

It is important to choose the right ITR form

The Income Tax Department has issued several ITR forms. In these, forms have been given according to different categories. You have to choose the form according to your income source. Do not make mistake in choosing ITR form. If there is a mistake here, the department will reject your form and ask you to file a revised return under section 139(5).

Income proof is required

It is very important to give correct information about income in ITR. On this basis your return is filed correctly. Haste or willful misinformation of income can be heavy. Many a times taxpayers do not disclose all the sources of their income. If not, the Income Tax Department can send you a notice. It is necessary to give information like interest from savings account and income from house rent.

Provide all bank account details required

Many a times, even after taxpayers have multiple bank accounts, they give details of only selected bank accounts. In such a situation, their income is not properly assessed. It is not right to do so. It is clear in the rules of income tax that the details of all the bank accounts registered in the name of the taxpayer are mandatory.

Also give details of foreign bank account

Apart from the country, if you have a bank account in any other country, then it is also necessary to give its details in ITR. According to the rules, all taxpayers will have to provide information about bank accounts or any other foreign assets. If you have invested in shares of companies listed in foreign markets or have invested in mutual funds, then this information will also have to be given. There is a provision of notice and penalty in case of default.

Give gift information

According to the rules of income tax, if you have received a gift of more than 50 thousand rupees in a year, then tax will have to be paid on it. It has to be mentioned in ITR filing. There is also a provision for filing a revised return if it is not given or forgotten. But, there is a possibility of getting a notice in case of lapse.

Match income details from Form 26AS

You can get information about your income or TDS deducted from Form 26AS or Tax Credit Statement. It is necessary to give this information in the income tax return. For claiming tax refund, it is necessary that your income details match. Before filing the tax return, match the details of income from Form 26AS and Form 16/16A. In case of any mistake in tax calculation, return will not be filed and there is a possibility of getting notice.

Choose the correct option between new and old regime

Taxpayers get two options to file income tax return. A new option was added from 1st April 2020. By the way, taxpayers choose their tax regime as soon as the financial year starts. But, its selection is also necessary while filing income tax return. ITR will not be filed if the information is not given in the return.

verify tax return

After filing the return, the last step is to verify the ITR. Verification is very important after filing tax return. You can e-verify your tax return from your income tax e-filing portal or can also get it verified by sending it to CPC-Bangalore by speed post.

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