How to overcome the challenge of fixed return filing deadlines

FBR blunder sparks confusion over manual tax return filing rules In a surprising and controversial move, the Federal Board of Revenue (FBR) has proposed making electronic filing of income tax returns mandatory for all individuals, effectively phasing out manual filing completely. https://lnkd.in/dZkH_J6m

The Most Common (and Costly) Tax Extension Mistake Filing a tax extension can be a smart move, but many taxpayers misunderstand its core function. An extension provides more time to file your return, not more time to pay your tax liability. This common misconception can lead to significant penalties and interest, even if your Form 4868 was approved. Our latest article details how to properly manage your extension and payment deadlines to ensure compliance and avoid costly surprises. How does your firm advise clients on the "file vs. pay" distinction during tax season? Read the full guide: https://lnkd.in/gT3Ai8Ac #TaxExtension #TaxPlanning #CPA #Accounting #TaxLiability #SWAccounting

🔍 Are you ready for the next step in tax compliance? From April 2026, individuals who are self-employed or landlords with gross income of £50,000 or more will need to join Making Tax Digital for Income Tax (MTD IT). But did you know that not every individual falls into the requirement? Some income exemptions — and even digital exclusion criteria — may apply. Our latest article breaks down: • Which types of income qualify for exemptions • When the £50k threshold applies • What to do if you believe you meet a “digital exclusion” 👉 Read on to make sure you are fully prepared — and not caught off-guard. https://lnkd.in/eWBnNjwe #MakingTaxDigital #MTDIT #tax #accounting #landlords #selfemployed

𝐌𝐚𝐧𝐲 𝐩𝐞𝐨𝐩𝐥𝐞 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐢𝐟 𝐧𝐨 𝐧𝐨𝐭𝐢𝐜𝐞 𝐜𝐨𝐦𝐞𝐬 𝐰𝐢𝐭𝐡𝐢𝐧 𝐚 𝐲𝐞𝐚𝐫 𝐨𝐫 𝐭𝐰𝐨 𝐨𝐟 𝐟𝐢𝐥𝐢𝐧𝐠 𝐭𝐡𝐞𝐢𝐫 𝐫𝐞𝐭𝐮𝐫𝐧, 𝐭𝐡𝐞𝐲’𝐫𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐥𝐞𝐚𝐫. 𝐁𝐮𝐭 𝐭𝐡𝐚𝐭’𝐬 𝐧𝐨𝐭 𝐞𝐧𝐭𝐢𝐫𝐞𝐥𝐲 𝐭𝐫𝐮𝐞. Even after your return is processed and no scrutiny is initiated, the Income Tax Department can 𝐫𝐞𝐨𝐩𝐞𝐧 𝐲𝐨𝐮𝐫 𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 if it has reason to believe that 𝐢𝐧𝐜𝐨𝐦𝐞 𝐡𝐚𝐬 𝐞𝐬𝐜𝐚𝐩𝐞𝐝 𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭. This is done through Section 148 — one of the most powerful reassessment provisions of the Income Tax Act. Let’s understand what Sections 148 and 148A mean and the timelines involved. 🔹 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖𝐀 — 𝐓𝐡𝐞 𝐏𝐫𝐞-𝐍𝐨𝐭𝐢𝐜𝐞 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 (𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞 𝐟𝐫𝐨𝐦 𝟎𝟏.𝟎𝟒.𝟐𝟎𝟐𝟏) Before any notice u/s 148 can be issued, the Assessing Officer (AO) must: 1️⃣ Conduct an enquiry, if required, with prior approval. 2️⃣ Issue a 𝐬𝐡𝐨𝐰-𝐜𝐚𝐮𝐬𝐞 𝐧𝐨𝐭𝐢𝐜𝐞 explaining why reassessment may be needed. 3️⃣ Allow the taxpayer an 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐭𝐨 𝐫𝐞𝐩𝐥𝐲 (𝐮𝐬𝐮𝐚𝐥𝐥𝐲 𝟕–𝟏𝟓 𝐝𝐚𝐲𝐬). 4️⃣ Pass a reasoned order with approval, deciding whether to issue the notice. This ensures that reassessment is not initiated mechanically — the 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫 𝐠𝐞𝐭𝐬 𝐚 𝐟𝐚𝐢𝐫 𝐜𝐡𝐚𝐧𝐜𝐞 𝐭𝐨 𝐫𝐞𝐬𝐩𝐨𝐧𝐝 before action is taken. 🔹 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖 — 𝐓𝐡𝐞 𝐑𝐞-𝐎𝐩𝐞𝐧𝐢𝐧𝐠 𝐨𝐟 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 Once the process under Section 148A is completed and approval is obtained, the 𝐀𝐎 𝐜𝐚𝐧 𝐢𝐬𝐬𝐮𝐞 𝐚 𝐧𝐨𝐭𝐢𝐜𝐞 𝐮/𝐬 𝟏𝟒𝟖 𝐫𝐞𝐪𝐮𝐢𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫 𝐭𝐨 𝐟𝐢𝐥𝐞 𝐚 𝐫𝐞𝐭𝐮𝐫𝐧 𝐨𝐟 𝐢𝐧𝐜𝐨𝐦𝐞 𝐚𝐠𝐚𝐢𝐧 for that year. After the return is filed, the AO proceeds to reassess the income under Section 147 — 𝐭𝐡𝐢𝐬 𝐢𝐬 𝐰𝐡𝐞𝐫𝐞 𝐭𝐡𝐞 𝐚𝐜𝐭𝐮𝐚𝐥 𝐫𝐞𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 𝐛𝐞𝐠𝐢𝐧𝐬. 𝐈𝐧 𝐬𝐡𝐨𝐫𝐭, 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖𝐀 𝐠𝐢𝐯𝐞𝐬 𝐲𝐨𝐮 𝐭𝐡𝐞 𝐜𝐡𝐚𝐧𝐜𝐞 𝐭𝐨 𝐞𝐱𝐩𝐥𝐚𝐢𝐧, 𝐰𝐡𝐢𝐥𝐞 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖 𝐢𝐧𝐢𝐭𝐢𝐚𝐭𝐞𝐬 𝐭𝐡𝐞 𝐫𝐞𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 𝐢𝐟 𝐭𝐡𝐞 𝐀𝐎 𝐢𝐬 𝐧𝐨𝐭 𝐬𝐚𝐭𝐢𝐬𝐟𝐢𝐞𝐝. 🔹 𝐓𝐢𝐦𝐞 𝐋𝐢𝐦𝐢𝐭𝐬 (𝐚𝐬 𝐩𝐞𝐫 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟗) A notice under Section 148 can be issued up to 𝟑 𝐲𝐞𝐚𝐫𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐞𝐧𝐝 𝐨𝐟 𝐭𝐡𝐞 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 𝐲𝐞𝐚𝐫 in normal cases. However, where the income escaping assessment 𝐞𝐱𝐜𝐞𝐞𝐝𝐬 ₹𝟓𝟎 𝐥𝐚𝐤𝐡, the time limit extends up to 𝟓 𝐲𝐞𝐚𝐫𝐬. Beyond this, reassessment cannot be initiated except in very limited cases. 🔹 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲 A notice under Section 148A(b) is not yet reassessment — it’s your opportunity to explain before the case is reopened. A timely and well-prepared response here can often prevent the matter from escalating further.

How to respond to Notice Under Section 142(1) of the Income Tax Act? A notice under Section 142(1) is sent by the Income Tax Department when they need more details or documents about your return or if you haven’t filed one yet. It’s not a penalty, but a request for clarification before final assessment. When it’s issued: • If you haven’t filed your return within the deadline. • If you have filed, but the Assessing Officer (AO) needs more documents or explanations to verify your details. What you need to do: • Read the notice carefully to see what’s required. • File or re-submit your return if asked. • Upload the requested documents through your e-filing account under “e-Proceedings.” • Respond within the given time to avoid penalties. If you ignore it: • ₹10,000 penalty under Section 271(1)(b). • A “Best Judgement Assessment” where the AO decides your tax liability without your input. • Possible prosecution or search warrant in serious cases. To stay safe: • File your return on time and e-verify within 30 days. • Keep all records and proofs of income, deductions, and expenses. • Always respond promptly to notices. • Seek professional help if unsure about your reply. Act quickly, stay transparent, and comply within time. Need expert support? Contact us.SMBC & Company LLP #IncomeTaxIndia#TaxCompliance#FinancialAwareness#TaxFilingTips

🚨 Income Tax Alert: ITR-B Filing Now Live for Block Assessment After Search Notices The Income Tax Department has launched ITR-B, a new form for taxpayers who’ve received notices under Section 158BC (Block Assessment after Search). 💡 What is Block Assessment? It’s a reassessment of undisclosed income found during a search or seizure, covering the past 6 years plus part of the current year in which the search occurred. Now, taxpayers can file ITR-B online via the e-Proceedings tab on the Income Tax portal. This simplifies compliance for individuals and businesses under investigation. 💰 How to Pay Tax for Block Assessment: ✅ If Logged In: Go to 👉 e-File > e-Pay Tax > New Payment > Self-Assessment Tax for Block Assessment ✅ If Not Logged In: Go to 👉 Quick Links > e-Pay Tax > Self-Assessment Tax for Block Assessment

🆕 Income Tax Portal Update: Now You Can See When Tax Officers Review Your Submissions 1️⃣ The Income Tax Department has introduced a new transparency feature on its e-filing portal that allows taxpayers to see the exact date and time when their submissions in faceless proceedings are viewed or reviewed by the 👉 Assessing Officer (AO) or 👉 Commissioner of Income Tax (Appeals) [CIT(A)]. 2️⃣ This enhancement ensures taxpayers are informed about the status of their responses, confirming that their submissions have been accessed by the concerned tax authority. 3️⃣ The feature aims to: Eliminate uncertainty about whether a response has been reviewed, Enable better monitoring of case progress, and Reduce disputes or allegations of non-consideration and procedural delays. 📊 This update is a positive step towards greater accountability and transparency in the Income Tax Department’s Faceless Assessment & Appeal framework. For Regular updates on Tax Research and Analysis, Pls join my WhatsApp channel: https://lnkd.in/gTuKsdgj --- 📌 Tax Research and Analysis An Initiative by CA. PANKAJ KUMAR MISHRA FCA, LL.B, M.Com, B.Com 📞 Contact: 9899407778

📢 Important Update: CBDT Extends Income Tax Due Dates for AY 2025–26 The Central Board of Direct Taxes (CBDT) has extended the deadlines for filing Income Tax Returns and Tax Audit Reports for the Assessment Year 2025–26. Here are the new dates: 🔹 Tax Audit Report Earlier Due Date: 31st October 2025 New Due Date: 10th November 2025 🔹 Income Tax Return (for audit cases) Earlier Due Date: 31st October 2025 New Due Date: 10th December 2025 This extension gives more time to complete audits, finalize accounts, and file returns without last-minute stress. It’s a helpful move for businesses, professionals, and taxpayers managing year-end compliance.

NEW FEATURE IN INCOME TAX E-FILING PORTAL A new feature has been introduced in the Income Tax E-filing portal that displays the date & time when the Assessing Officer (AO) or Commissioner of Income Tax (Appeals) has viewed the taxpayer’s submissions. This functionality has been enabled for submissions viewed by the Officers from October 2025 onwards. Key Benefits: 1. Promotes transparency & accountability in faceless assessment & appeal framework. 2. Enables taxpayers to verify whether their submissions were actually reviewed before a notice is issued or order is passed. Practical considerations: 1. The feature only confirms that a submission was viewed, not necessarily examined in detail. 2. Timestamp proximity to order dates might lead to debates on the adequacy of review. 3. Taxpayers could potentially rely on this data in appeals to allege procedural lapses. Overall, while this is a welcome move towards greater procedural transparency, its success would rest on fair procedural application by the authorities.

🧾 ITR Filing FY 2024-25: Choosing Between Old vs New Tax Regime As taxpayers file their ITR for AY 2025–26, a critical choice awaits: Old Tax Regime or New Tax Regime? ⚠️ The New Regime is now the default, so unless you opt out while filing your return, it applies automatically. ✅ Key Points to Know: Salaried taxpayers can switch every year, but must file the original return before the due date to choose the old regime. The ITR form (1/2) asks: “Do you wish to opt out of the new regime u/s 115BAC(6)?” – Select ‘Yes’ for old regime. Late filers can’t choose the old regime. Business/professional income earners have limited flexibility – can switch only once after opting out. Form 10-IEA is required to opt out for business/profession taxpayers before the due date. ITR-4 filers under presumptive tax must disclose Form 10-IEA details if filed earlier. 💡 Tip: Compare both regimes based on actual income, deductions & exemptions. If deductions exceed ₹4L, the old regime may offer more savings.