Financial transaction

Five Important Tax Deadlines a Taxpayer Needs to Know


It is important that taxpayers know and understand all tax deadlines. If you miss the deadline, you may have to pay a penalty, interest or additional taxes.

Here are some important tax deadlines a taxpayer should consider:

1. Filing of annual tax returns:

Any taxpayer whose income is taxable is required to file an annual tax return.

• Due date for individuals/businesses (not subject to audit) – July 31 each year.

• Due date for individuals/firms/corporations (subject to audit but not transfer pricing) – 31 October.

• Due date for individuals / firms / companies (subject to audit and transfer pricing) – 30 November.

“Late filing/non-filing is subject to interest and other criminal consequences. Additionally, it is mandatory to file tax returns to claim and carry forward losses to future years,” warns Anita Basrur of Sudit K Parekh and Company LLP.

2. Filing of the tax audit report:

Any taxpayer whose gross receipts/turnover exceeds the specified limits is required to have their accounts audited by a public accountant.

• Due date for individuals/firms/corporations (subject to audit but not transfer pricing) – September 30

• Due Date for Individuals/Companies/Companies (subject to audit as well as transfer pricing) – October 31.

“Failure to comply with this requirement results in a penalty of Rs 1.50,000 or 0.5% of total sales/turnover,” Basrur adds.

3. Filing of withholding tax declarations (TDS and TCS)

Every taxpayer (except non-audited individuals/businesses) is required to withhold tax at applicable rates from payments made by them for services and purchase of goods subject to prescribed thresholds. In addition, the tax must be collected in the event of the sale of goods.

In addition to withholding tax/tax collection, the taxpayer is required to file withholding tax returns on a quarterly basis.

Quarter TDS Returns TCS Returns Q1 July 31 July 15 Q2 October 31 October 15 Q3 January 31 January 15 Q4 May 31 May 15

Failure to file these declarations results in a penalty of Rs 200 per day until such failure continues.

4. Filing of SFT declarations

Persons who have entered into specific prescribed financial transactions are required to report such transactions to the tax authorities no later than May 31 of the fiscal year following the fiscal year in which the transaction is registered.

“While most entities often fail to report such transactions, failure to provide such a report results in a penalty of Rs 500 per day from the expiry of the due date until the date of the notice and Rs 1,000 per day from the date the notice expires. Further, inaccurate provision of such reports also incurs a penalty of Rs 50,000 and hence it is imperative to report such transactions,” Basrur adds. .