CBDT Notified New ITR-V and ITR acknowledgement Forms: Ready to Face Penalty if instructions not followed:

CBDT Notified New ITR-V and ITR acknowledgement Forms: Ready to Face Penalty if instructions not followed The Central Board of Direct Taxes (CBDT) has issued a notification amending the ITR-V and acknowledgment forms. According to the e-gazette portal, the notification was issued due to changes made in the Income Tax Act of 1961, which were proposed in Budget 2023. The CBDT notification was released on March 27, 2024, and it is effective April 1, 2024. According to tax experts, no significant changes have been made to both forms; nonetheless, one must now be careful while submitting ITR-V to avoid penalties. The recently notified ITR-V (Income Tax Return - Verification) form includes two instructions for taxpayers, which are as follows:

• Where ITR data is electronically provided and an ITR-V is submitted within 30 days of data transmission, the date of electronic transmission is considered the date of submitting the return of income.
• Where ITR data is electronically transmitted but ITR-V is submitted after the 30-day data transmission deadline, the date of submitting ITR-V is treated as the date of furnishing the income return, and all consequences of late filing of return under the Income-tax Act, 1961 shall apply.

This means that if a taxpayer checks their income tax return within 30 days of submitting it, the date of submission of the ITR form will be considered the date of filing the ITR. However, if the income tax return form is confirmed after 30 days, the date of ITR verification will be used as the filing date. In such cases, the consequences of late ITR filing may apply. If an individual files an income tax return after the July 31 deadline (or as stated by the government), the return is referred to as a belated ITR. Individuals who file a belated ITR must pay a late filing fee of up to Rs.5,000. In addition to late filing fees, an individual must pay any applicable penal interest on pending tax amounts. If a belated ITR is filed, the taxpayer will be unable to select the desired tax regime. A taxpayer can only select the desired tax regime if the ITR is submitted on or before the deadline.