Cost summary for filing an Income Tax Return (ITR) varies depending on the chosen method and level of assistance. The most cost-effective option is using the official government portal, which allows individuals to file their tax returns for free.
For those who prefer the convenience of private tax filing portals but wish to file their taxes independently, the charges typically range from Rs 200 to Rs 250.
So, many individuals opt for expert assistance to ensure accurate filing and maximise deductions.
7.4 crore ITRs filed in FY2022-23: FM
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Adv Ashish Mishra, Founder of Daily Tax, said :
“Using a private portal with tax expert assistance costs around Rs 1,500 to Rs 2,000. The complexity of compliance requirements may necessitate higher costs for individuals with foreign assets. Those with relatively straightforward foreign asset cases may pay around Rs 3,000 to Rs 4,000 for expert assistance, while individuals with more complex situations could incur Rs 4,500 to Rs 7,000 charges. Those with extensive foreign assets and intricate reporting requirements may need to pay between Rs 7,000 to Rs 10,000 for expert help. It is crucial to consider these costs and choose the appropriate option based on individual tax situations and requirements.”
It is crucial to file ITR correctly, or, it may have many financial implications.
Adv Ashish Mishra said :
“Though the assessee can file returns after the due date of 31st July 2023, the same comes with certain consequences. The most important of the same being that the losses, if any other loss from house property, shall not be allow to be carried forward and set off in the subsequent years.”
The late filing fees would be either Rs 5000 or Rs 1000 until 31st December, depending on income levels.
Adv Ashish Mishra said :
“Interest shall be levied at 1% p.m. till the date of filing of the returns. Beyond 31st December, the assessee would have the option to file updated returns only in the case of if there is a tax payable, but an additional tax of 25% is to be paid for updated returns filed till 31st March, 2024 and 50% of additional tax after that till 31st December, 2024.”
The assessing officer shall also have the option to initiate assessment under the best judgement method if returns are not file or have been filed, not providing further details as request by the assessing officer.
Adv Ashish Mishra said :
“Penalties up to 50% could be levied for underreporting income and up to 200% for misreporting of income. In the event of non-filing, the assessing officer shall have the option to issue notice for prosecution with imprisonment from 3 months to 7 years and a fine. Considering the financial impact of losses not being allowed to be carried forward, Interest and penalty coupled with the risk of prosecution in extreme cases, the assessees should strive to file the returns on time by taking advantage of the improved e-filing experience/resources,”.
So, if you face any difficulty filing your ITR, getting help from a chartered account is necessary.
