July is a crucial month for income tax assessees in India, owing to several tax-related activities and deadlines that coincide during this time. The primary reason being July 31, traditionally marked as the deadline for filing Income Tax Returns (ITR) for individual taxpayers and non-audit entities.
Awareness about significant tax-related dates helps in avoiding penalties, facilitates financial planning, and ensures that you are in line with tax law amendments. Below, find a list of key dates for the financial year 2022-23 (Assessment Year 2023-24) that are essential for Indian taxpayers.
Deadlines for Submitting Income Tax Return (ITR)
The final date for submitting an Income Tax Return (ITR) for the financial year 2022-23, without any late charges, is July 31, 2023. If this date is missed, a belated ITR can still be filed until December 31 but anticipate a late filing charge. The ITR currently being filed pertains to earnings during the FY 2022-23, spanning from April 1, 2022, to March 31, 2023.
The Income Tax Department typically begins accepting ITR e-filings from the first week of June. It’s not just filing your ITR that’s crucial, but also verifying it, as without verification, your filing is deemed void.
Dates for Issuing TDS Certificates
Each 15th of the month is a significant date because this is the deadline for issuing Tax Deducted at Source (TDS) certificates for tax deductions under various sections. For instance, July 15, 2023, is the due date for issuing TDS certificates for taxes deducted under section 194-IA, 194-IB, 194M, and 194S in May.
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Dates for Depositing Taxes
Every 7th of the month is another important date as it is the cutoff for depositing Tax deducted/collected for the preceding month. As an example, July 7, 2023, is the due date for depositing tax deducted/collected in June.
Quarterly TCS Deposit Deadline
June 30, 2023, is another key tax deadline, marking the end of the quarter for the issuance of the Quarterly Tax Collection at Source (TCS) certificate. According to the Income Tax Department’s guidelines, anyone responsible for TCS collection must issue a certificate to the buyer, licensee, or lessee, detailing the amount of tax collected and other specifics.
Other Dates to Remember
Other dates may vary according to the taxpayer type and specific tax-related activities. For instance, different deadlines apply for activities such as depositing contributions towards PF/ESI or issuing TDS certificates under various sections.
Also, if your total spending exceeds Rs 2 lakh on foreign travel for yourself or someone else, or if your aggregate expenditure on electricity bills exceeds Rs1 lakh, an ITR must be filed.
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ITR Filing Deadline
The due date for Income Tax Return (ITR) filing is a crucial event that all taxpayers should earmark in their schedules. For the Financial Year (FY) 2022-23, the ITR needs to be filed by July 31, without any late charges. This return pertains to income generated from April 1, 2022, to March 31, 2023, which will be evaluated during the Assessment Year (AY) 2023-24.
What is Tax Collected at Source (TCS)
TCS is a type of indirect tax that the seller levies from the buyer at the time of sale of specified items, as stipulated by the Income Tax Act, 1961. This tax is then deposited with the government by the seller or collector. The TCS rate differs according to the goods category, as outlined in section 206C of the Income Tax Act.
Details on Tax Deducted at Source (TDS)
TDS is an advanced tax form, deducted from the income source, and is applicable to various income types like salary, bank interest, commission income, rent income, etc. The payer (deductor) deducts a certain percentage of the amount as TDS and pays the balance to the receiver (deductee). The TDS amount is then deposited to the government by the deductor.
Key Income Tax Sections
Section 234A: This section is invoked when taxpayers fail to file their ITR by the stipulated date. A penalty interest is applied to the unpaid tax amount.
Section 234F: This section stipulates that a penalty fee is levied if the taxpayer fails to file the ITR by the deadline, which is July 31.
Section 194-IA, 194-IB, 194M, 194S: These sections relate to the TDS applicable on certain types of payments, such as rent, payment to contractors, professional fees, etc. TDS certificates must be issued for tax deducted under these sections.
Taxpayers are encouraged to seek advice from tax professionals or refer to the official Income Tax Department website to fully understand their tax responsibilities. These sections and deadlines are of utmost importance.
Why July is an important month for income tax assessees
July is a crucial month for income tax assessees in India, owing to several tax-related activities and deadlines that coincide during this time. The primary reason being July 31, traditionally marked as the deadline for filing Income Tax Returns (ITR) for individual taxpayers and non-audit entities. July 15 is another important date when Tax Deducted at Source (TDS) certificates for tax deductions made in May must be issued. Tax deducted or collected in June is to be deposited by July 7, and the Quarterly Tax Collection at Source (TCS) certificate for the quarter ending on June 30 is also typically issued in July. Lastly, the Income Tax Department usually begins accepting e-filing of ITRs from the first week of July. The reason all these dates fall in July is mainly due
