Government might consider extension of ITR-2 due date (update)

The Income Tax Department this year planned to execute the Income Tax Return (ITR) completion process by 31St July, 2022. Due to the Covid-19 pandemic, the process in the last two years was allowed extension of dates consequently. However, in the financial year, 2022, the department tried to take back the process to how it used to be. The Central Body of Direct Taxes (CBDT) is also monitoring the ground situation before considering extension dates for this year. 

The Department however was expected to consider an extension of ITR-2 as a problem was reported to them. The due date for the assessment year 2022-23 came in after seven months of the previous years due date which was December 31, 2021. 

The problem came up when a senior taxpayer who draws regular income through systematic withdrawal plan (SWP) in debt-oriented mutual fund (MF) schemes and invests in senior citizen schemes, failed in an attempt to validate ITR-2 on July 30, 2022. 

The validation in the Tax Paid was resolved for the taxpayer; however, it wasn’t resolved in the Schedule Capital Gain Page. 

The CBDT soon after receiving the notice about the issue, tried to guide the taxpayer through online meeting around midnight. They realized that it wasn’t a case of entries in wrong places and thus withdrew from the help. The problem remained unsolved till the morning of July 31, 2022 which is the due date. 

Considering all of this it was cited that the government would extend due date to provide taxpayers some more time to complete the process. 

Update : The Income Tax Department informed today that there won’t be any extension of due date. Taxpayers have to complete the process by July 31, 200 i.e., today. On failing to file today they will have to pay a late fee as penalty to the department. A taxpayer who fails to file today will have to submit a penalty of  Rs 5,000 under section 234F of the IT Act, if the returns are furnished on or before December 31st of the assessment year.