The Central Board of Direct Taxes has released a notification regarding the new ITR Acknowledgement form, which includes the ITR-5 form. However, the ITR-5 form has undergone significant changes this year, and taxpayers need to read and follow the instructions carefully.
According to the e-Gazette portal, the CBDT has issued this notification by amendments to the Income Tax Act, 1961, as announced in Budget 2023. The notification was released on March 27, 2024, and the changes will be effective from April 1, 2024.
Submitting the ITR-5 form accurately and on time is crucial to avoid penalties. Tax experts advise that the ITR-5 and ITR Acknowledgement forms have remained the same. However, ensuring that the ITR-5 form reaches the income tax department on time is essential.
The CBDT has made two suggestions in the newly notified ITR-5 form.
- Firstly, suppose the ITR data is sent digitally. In that case, the date of electronic transfer of ITR data will be considered the date of ITR returns, provided that the ITR-5 form is submitted within 30 days.
- Secondly, the ITR-5 form must be submitted within 30 days of electronically sending the ITR data. If the verification is done within 30 days of filing, the ITR form submission date will be considered the ITR filing date. If the verification is done after 30 days, that date will be considered the ITR filing date, which may lead to penalties and other issues.
Filing income tax returns after the July 31 deadline will result in billed ITR, and a late fee of Rs.5000 must be paid. Additionally, interest on the tax amount will also have to be paid. Delaying ITR filing also means losing the opportunity to choose the tax system, as the new tax system will be defaulted. Taxpayers can only select the tax regime if they file before July 31.
