How much do payroll services cost for small businesses?

The cost of payroll services can vary depending on the features you need and the size of your business. On average, most small businesses can expect to pay between $20 and $200 per month for payroll services

Can payroll services handle tax filing?

Yes, most payroll services automatically handle federal, state, and local tax filings, ensuring compliance with tax laws.

Is it better to outsource payroll or manage it in-house?

Outsourcing payroll saves time and reduces the risk of errors. It is often more cost-effective for small businesses to outsource payroll rather than hiring a full-time staff member to manage it in-house.

Can payroll services handle benefits administration?

Many payroll services also offer benefits administration, helping small businesses manage health insurance, retirement plans, and other employee benefits.

What happens if payroll errors occur?

If errors occur, most payroll services offer guarantees and will correct the mistake and handle any penalties resulting from their error.

Can I use payroll services for both full-time and part-time employees?

Yes, payroll services can handle payments for all types of employees, including full-time, part-time, and contract workers.

Hurry File Belated Income Tax Returns – File ITR For FY 20-21 now ( AY 21-22) if not Filed earlier

Are you late in filing your income tax returns and you are wondering what to do? You don’t have to wait for the Tax department to chase after you. There is an option of filing Belated Income tax returns and this article will give you insights on how to go about it. The due date for Income Tax Return (ITR) filing for the fiscal year 2020 – 2021 elapsed on 31st December 2021. However, you still have time till 31st March 2022 to file belated returns.

What is a Belated Income Tax Return? Just like the name implies, a Belated Income tax return refers to a return filed after the due date has lapsed.

Who can file a Belated ITR?

Any assess whether an individual or a business owner who has missed filing ITR by the regular due date can file a Belated ITR on payment of a nominal late fee U/S 234F.

Why you Should File It?

Filing ITR year on year offers numerous advantages as follows

Makes you Tax Compliant
Acts as Income proof while obtaining any kind of loan
Helps in Quick VISA Processing
Enables you to obtain a refund of excess taxes paid with interest
Enables carry forward of losses to future years which helps in reducing the tax liability of future years
Saves you from the stress of receiving Income Tax Notices for Tax Demands

Filing Belated ITR gives all the above-mentioned advantages except that current year losses cannot be forward to future years in case of Belated Filing.

What are the Timelines for Filing Belated ITR?

The Regular and Belated ITR filing due dates are shown below:

	FY 20-21		FY 21-22
Category of Taxpayer	Extended Due date as per the CBDT Circular	Belated ITR Filing Due Date	Regualr Due dates	Belated ITR Filing Due Date
Individuals/HUF/AOP/BOI ( Cases where Books of Accounts are not required to be Audited	31.12.2021	31.03.2022	31.07.2022	31.12.2022
Businesses Requiring Audit	15.03.2022	31.03.2022	31.10.2022	31.12.2022
Businessess where Transfer Pricing Audit is applicable	15.03.2022	31.03.2022	30.11.2022	31.12.2022

A provision under the Income Tax Act section 139(4) states that, when a taxpayer is unable to file their returns before or on the due date of the relevant Assessment Year (AY), they have an option to file Belated returns before the end of the relevant AY. The due date for filing Belated Income Tax Returns is normally 31st December. However, the Covid pandemic made the Central Board of Direct Taxes (CBDT) push the actual income tax return filing dates from 31st July 2021 to 30th September 2021 and then to 31st December 2021. Thus for AY 2021-22 you can file your belated returns by 31st March 2022.

What are the Penalties for Filing Belated ITR?

Late Fees U/S 234F

Belated income tax return filing attracts a late fee u/s 234F of the Income Tax Act. The Late fee depends on the Total Income of the assesse and is calculated as per the below table.

Late Fee U/S 234 F
Total Income	Late Fee -234F
Upto Rs 2.5 lacs	Nil
Above Rs 2.5 lacs – Upto Rs 5 lacs	Rs 1000
Above Rs 5 lacs	Rs 5000

Interest U/S 234A

Assesses that have already surpassed the regular due date of ITR Filing attract a penal interest

under section 234A @ 1% per month of the outstanding tax amount on the due date of ITR Filing

For Instance, Mr. Shantanu’s Net Tax Payable as of 31.03.2021 for the FY 20-21 is Rs 1,00,000. Now he misses filing ITR by 31st December ’21 and intends to complete the Belated ITR Filing by 15.02.22. He would be liable to Interest U/S 234A for the delay in filing of ITR as follows

Outstanding Tax – Rs 1,00,000

Due date of ITR – 31.12.2021

Date of Filing ITR- 15.02.2022

Period for Calculating Interest U/S 234A- 01.01.20222 TILL 15.02.2022 ( 1 month 15 days but will be considered as 2 months as part of month is considered as Full month)

Rate of Interest -1% per month

Penal Interest U/S 234 A = Rs 1,00,000 *1%* 2= Rs 2,000

Calculate Penal Interest U/S 234 A , B and C – Use Online Calculator

https://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx

*Source Income Tax India

What are the disadvantages of Filing Belated ITR over a Regular Filed ITR?

Under Belated Income Tax Return filing, you cannot carry forward losses from capital gain, business, and profession to upcoming years. Only losses from house property and unabsorbed depreciation can be carried forward.

Under Belated Income Tax Return Filing Interest is not paid on the Tax refund due as per the provisions of Section 244A Income Tax Act 1961.

For Filing Belated ITR you would be liable to pay Late Fee u/s 234F and Penal interest u/s 234A.

Statistics on Belated ITR

The following table shows the statistics of ITR’s filed, in different Assessment years since 2017:

Assessment Year (AY)	Approximate ITRs Filled
2020-2021	4.86 crore
2019-2020	7.38 crore
2018-2019	6.78 crore
2017-2018	6.74 crore

Source https://search.incometaxindia.gov.in/pages/results.aspx?k=STATISTICS

As it’s evident the number of ITR’s filed is increasing every year. However, there is a shortfall in ITR’s filed for the AY 2020-21. This means that there is a total number of about 2.9 crores assesses who have not yet filed ITRs. If you are among this number then the only step you have to take is to go for Belated ITR Filing and become Tax Compliant and Stress-Free.

What are the documents required to file Belated ITR and Who can do it for you?

The process of filing a Belated ITR is the same as filing the Regular ITR. The documents to be kept handy before proceeding to File your ITR are

PAN Card
Aadhar Card
Form 16
Form 16A ( If you have income other than Salary)
26AS
Annual Information Statement
Bank Statements for all bank accounts
Details of Investments u/s 80C, 80D, Home loan payments, and other savings or deductions which qualify for Deduction from Income

If your income details are simple, straightforward plus you have the time and patience to complete the Belated ITR Filing on your own, you can visit the E Filing Portal of the Income Tax Department and complete the filing on the below link

https://eportal.incometax.gov.in/iec/foservices/#/login

*Source Income Tax India

However, if you are willing to complete Belated ITR Filing with the below advantages

Accuracy in calculating the Taxable Income
Claiming all possible Deductions as applicable to you
Minimizing your Taxes
ITR form filled with precision by professionals
Reducing the possibility of receiving ITR notices due to defective ITR Filing

Then make your choice wisely, Choose The Tax Planet

The Tax Planet Tip

After 31st March 2022, it will ITR Filing option for AY 21-22 will no longer be available. Your returns will no longer be belated but missed returns. Missed ITR filing is more complex as it can only be done with a notice from the IT department. Therefore, file ITR now to avoid notice from the IT department.