A total of 58.3 million income tax returns have been filed in the assessment year 2022-23 till July 31. To file the return of income earned during the financial year 2021-22 in the assessment year 2022-23. Interestingly, 7.24 million or nearly one-eighth of the total returns were filed on July 31, the last day of filing. In fact, a press release issued by the Finance Ministry on August 1 stated: “The e-filing portal…set…the benchmarks include as on July 31, 2022 – the highest per second rate of ITR filing: 570 (4 :29 at :30 pm), highest per minute rate of ITR filing: 9,573 (7:44 pm), and highest hourly rate of ITR filing: 5,17,030, between 5 pm and 6 pm.”
These records tell us many things.
Firstly, after many years of problems, the income tax filing system seems to have finally sorted itself out. The system has come a long way since it was launched almost a decade and a half ago. In the early days, anyone could hack into someone else’s income tax account as long as they had access to some basic information such as PAN and date of birth. Second, the fact that around one-eight filings took place on the last day tells us that many tax return filers were confident and if not they were at least hoping that the government would extend the last date as in the past few years. Is. ,
It is a good thing that the government has not extended the last date as it fools those who file returns on time. And it shouldn’t be a thought. In fact, it was prudent to extend the deadline during the peak of the COVID pandemic, but there was no logic to do so this time, especially when the website was not breaking.
The question is why do people delay in filing their income tax returns. The answer probably lies in the fact that many of us take our money management decisions very lightly. While we may spend weeks on end deciding which mobile phone to buy, where to take a vacation, etc., decisions about money management that don’t provide the same kind of thrill that money spending decisions tend to put off.
A good example of this is the fact that many people are ready to invest their tax savings in March, when they have a full year to do so. In the process, they burn their fingers and invest in the wrong product. Similarly, from the end of the financial year in March to the end of July, there is more than enough time to file income tax returns. In case of salaried, Form 16 is not available immediately. But by mid-June, it becomes available in most cases. It still has at least six to eight weeks left to file the return. Nevertheless, many people postpone it until the very end. It also stems from the fact that in many cases people have little understanding of how the income tax system works in their specific cases. Things can get complicated on this front, but for those who make massive money through their salary early in their career, they are quite simple. So, as one starts his career, it makes sense to have a basic understanding of taxes. Over the years, as income increases and the system becomes more complex as different types of income are earned, things can always be learned incrementally. Even after hiring a Chartered Accountant (CA) to file tax returns, it doesn’t hurt to understand how the system works. Even a CA makes a mistake.
Finally, now that the income tax return has been filed, the income tax refund will start coming. In their mind, many people regard it as free money and prefer to blow it off. But the fact is that it is basically delayed income. For salaried, it is deferred payment of salary. Or simply put, it is your hard earned money being returned to you. So, treat it as if you would treat your salary income or your business income and not as free money.
Vivek Kaul is the author of Bad Money.
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