I am a salaried person. My employer withheld full tax from my salary. I failed to file my income tax return for the financial year 2021-2022 by 31st July. What should I do now?
As per the provisions of tax laws, there are two dates for filing your Income Tax Return (ITR). One is the deadline and the other is the last day. July 31, 2022 was the deadline for you to file your ITR for FY 21-22 as there are various benefits if you file your ITR on time. For example, only if you file your ITR on time, you are allowed to carry forward losses that cannot be offset against your income during the same year.
The last date is the date on which you cannot file ITR. December 31, 2022 is the last date you can file your ITR, but you have not been able to file it by the deadline i.e. July 31, 2022. If you file now, you will have to pay interest for delay in filing ITR. After your ITR expires but before the last date. If your taxable income exceeds five lakhs, you will have to pay a mandatory fee of five thousand rupees while filing your ITR on the last date. However, if your taxable income is below five lakhs, the mandatory late payment should not exceed one thousand rupees.
My brother who is an NRI has an NRE (Non Resident External) account in India. The bank offered him a life insurance policy from a sister company, to which my brother agreed. My brother does not have a PAN (Permanent Account Number) card. After five years of compulsory lock-in, my brother surrendered the policy and received the money from the insurance company after tax on 4th July 2022. After contacting the insurance company, they informed us that the tax was withheld. as per rules and advised us to submit his ITR to claim refund of tax deducted. Now my brother applied for PAN card. What should we do to get a tax refund?
Looks like your brother got wrong ULIP policy. Because the insurance company withholds tax, the proceeds of the insurance policy your sibling receives may be subject to tax. For tax deduction, your brother will get credit if he has PAN and is notified by the insurance company while filing his TDS (tax deducted at source) return. Since your brother does not have PAN, the insurance company will have to file its TDS return without your brother’s PAN. Hence, your brother will not be able to get credit for the tax deducted until his PAN is updated by the insurance company in the records of the income tax department against the tax deducted. Once your brother gets his PAN, he should submit the same to the insurance company and request them to revise his TDS report keeping his PAN in mind. Once the same is done, the TDS will be reflected in its Form No. 26AS/AIS (Annual Information Statement). Since the tax has been deducted during the current year, your brother will have to file an ITR to claim the TDS refund after the end of FY 22-23.
The author is a tax and investment expert.
(Disclaimer: Opinions expressed are those of the author and Outlook Money not necessarily subscribe to them. Outlook Money shall not be liable for direct or indirect damages to any person/organization.)