I am daily getting emails/messages from my clients inquiring about when we will be filing their annual income tax return for F.Y 2019-20. If you are also thinking that F.Y 2019-20 has already ended in India and now it’s time to file annual income tax return in India then you are right. But….
Please note in spite of our willingness to file we may have to wait for few more days or may be one or two more months!!
Here are the reasons:
Firstly we have to wait for new ITR forms applicable for F.Y 2019-20 to be notified by CBDT (Central Board of Direct Tax). Every year new ITR forms are issued by income tax authorities with few changes as compared to previous year. They may ask for few additional information from tax payers or they may delete unimportant information which they asked last year but not required now.
Secondly, even if new forms are available for filing we may have to wait for few more days. It is due to the fact that income and TDS detail of last quarter of F.Y 2019-20 takes time to get updated in tax payer’s 26AS*. We have to match TDS details in our hand with 26AS before uploading the ITR. Most of the NRIs are getting interest income on their savings in India on which the bank deducts TDS. This TDS details of last quarter i.e 1st Jan to 31st Mar may take time to get updated in 26AS. It is always better to wait for updated 26AS before filing annual tax return because income tax department process the ITR and issue refund based on the information in 26AS only.
*26AS – It is an annual tax statement of a tax payer which contains information like Tax deductor’s name, Tan no, date, amount paid/credited, TDS deducted on it, etc. It also contains information like advance/self-assessment tax paid by tax payer and details of refund received in that year. It contains only the TDS detail which tax deductor has updated with income tax department. In case, Tax deductor has deducted TDS but didn’t file respective TDS return with Income tax department then this TDS will not get reflected in tax payer’s 26AS. In that case, tax payer will not be able to claim credit of that particular TDS amount. To avoid this tax payer should make sure that whatever TDS is deducted from his income shall be properly reported by his tax deductor in the form of TDS return to income tax department. But it doesn’t mean he becomes too pushy and keep poking his tax deductor to file tax return immediately after tax deduction as to ease the process there are prescribed time limit for filing of each type of TDS returns. It is liability of Tax deductor to file TDS return with in specified time and shall issue TDS certificate to tax payer. At the filing of annual income tax return, tax payer shall match his TDS certificate detail issued by tax deductor with his 26AS to claim credit of TDS deducted.
My aim is to make a person understand especially non-resident who do not have any tax background and are not in touch with Indian tax norms anymore in simple words. I hope this clears the doubt most of the NRIs are having in their mind regarding tax filing in India for F.Y 2019-20.
Please do let me know if you still have any questions related to above. You can write to me at firstname.lastname@example.org