Important Due Dates for December 2023, Income Tax Updates – November 2023

Due Date for Income tax Compliance (December 2023)


Due Date Compliance
7th December 2023 Deposit of TDS/ TCS deducted/collected for the month of November, 2023.
15th December 2023 Issue of TDS Certificates for TDS deducted in the month of October, 2023 :

• Purchase of Immovable Property
• Payment of rent above ₹ 50,000 p.m. by Individual or HUF
• On Commission, Contractual Payment, Professional Fee above ₹ 50 Lakhs in a financial year
• Payment on transfer of Virtual Digital Assets

15th December 2023 Furnishing of Form 24G by an office of the Government where TDS/TCS for the month of November, 2023 has been paid without the production of a challan.

Third Instalment of Advance Tax for the Assessment Year 2024-25.

30th December 2023 Furnishing of Challan Cum Statement for TDS withheld in the Month of November, 2023:

• Purchase of Immovable Property
• Payment of rent above ₹ 50,000 p.m. by Individual or HUF
• On Commission, Contractual Payment, Professional Fee above ₹ 50 Lakhs in a financial year.
• Payment on transfer of Virtual Digital Assets

30th December 2023 Furnishing of report in Form No. 3CEAD for a reporting accounting year by a constituent entity, resident in India, in respect of the international group of which it is a constituent if the parent entity is not obliged to file report under section 286(2) or the parent entity is resident of a country with which India does not have an agreement for exchange of the report etc.
31st December 2023 Filing of belated/revised income tax return for the assessment year 2023-24 for all assessee (provided assessment has not been completed before December 31, 2023).

1. Income Tax Department provides “Discard Return” option. When it’s available for use:

The Income Tax Department has launched a new feature called ‘Discard Return’. This new feature allows an individual to completely discard, i.e., delete their previously filed unverified income tax return (ITR). This means that the ITR that was previously submitted by an individual but not verified can now be deleted from the income tax department’s records.

This will help an individual to avoid going through the revised ITR process of correcting mistakes in the originally filed ITR. “Earlier, if an individual wanted to correct a mistake in their submitted ITR, it could only be done once the original ITR was filed and verified. Once the original ITR was verified, then the individual was required to file a revised ITR to correct mistakes.

As per income tax provision, Income tax return filer is required to verify its return in 30 days. On failure to do so, original return is considered invalid and the taxpayer has 2 options:

• Verify it after 30 days and file a condonation application on receipt of invalid ITR intimation with valid reason for delay in verification.

• File belated ITR, provided the due date of filing belated ITR is not expired. In the 2nd option, unverified original return is not relevant.

Accordingly, taxpayer will be able to discard the said verified ITR with the new feature available at income tax portal. Earlier, in the absence of said feature, original return was required to verify before filing revised return and if the same is not done within 30 days, revised return was considered as belated return (not revised return). Consequently, all the provisions of belated return will follow.

Thus, New feature will be useful if person realise some mistake in preparation of ITR before its verification.

2. Change in reporting of capital gains transaction for AIS :

Depository Institutions are required to submit information relating to capital gains on transfer of listed securities or units of mutual funds.

As per corrigendum to Notification No. 3 of 2021 dated 15.11.2023, with effect from 1s t April 2023 the statement of financial transactions data will be submitted on half yearly basis instead of existing quarterly basis i.e. data relating to 1st half of the Financial Year ending 30th September and remaining half of the Financial Year ending on 31st March shall be furnished on or before 31st of October and 30th of April respectively.

Further, consideration for the transaction should be determined based on revised prescribed rate in corrigendum. However, the taxpayer will continue to be able to modify the sales consideration before filing the return.

3. Withholding of refund:

New Income tax Instructions for withholding of refund till assessment is made as per income tax provisions, where a refund becomes due to an assessee after processing of ITR and notice for assessment is issued to him, AO may withhold such refund till the date of such assessment being made; if he is of the opinion that the grant of refund is likely to adversely affect the revenue. Such withholding can be done after recording the reasons for doing so, with the prior approval of the PCIT and applicable to assessment years on or after 2017-18.

Vide instructions no.2/2023 dated 10th Nov 2023, it is stated that withholding of refund is applicable in above said cases, where the value of refund is 10 lakhs or more. Further, Faceless AO, on receipt from intimation from CPC, shall intimate the Jurisdiction AO with regard to demand likely to be raised in pending assessment. Jurisdiction AO with proper application of mind and after analysing the factual matrix of the case (i.e. financial condition, past demands, pendency of appeal etc), seek approval of PCIT and communicate the decision to CPC. Time limit for the above process is revised to 20 days for faceless unit and 30 days for Jurisdictional AO.

4. Anonymous donation :

Anonymous donation not taxable if Trust exists for charitable as well as for religious purpose but revenue can take action for 80G [In the Judgment of Shree Sai Baba Sansthan Trust – I.T.A. No.3049/Mum/2022 – Mumbai ITAT] Income of any trust wholly from a public religious purpose and for charitable purpose is exempt from tax subject to certain conditions.

However, anonymous donations above a certain limit are taxable. Section 115BBC along with CBDT Circular No. 14/2006 provides relaxation for the anonymous donations received in hundis/ donation boxes etc. for both religious & charitable, from their devotees. In the case of Shree Sai Baba Sansthan Trust, revenue observed that Assessee is registered under Section 80G, and eligible trust cannot be for the benefit of any particular religious community other than charitable purposes and thus, concluded that the Assessee is a charitable trust only having no religious purpose, thus, not entitled to benefit under Section 115BBC. Hon’ble Mumbai ITAT while deciding the case against the revenue, explained that it is not possible to maintain the name, details and records of donors/devotees making their donation/offerings at religious places, without any direction/ instruction. Thus such anonymous donations are kept out of the ambit of Section 115BBC. ITAT also said that if the objects of any trust is not solely charitable but is mixed purpose and the Revenue is of the view that such trust cannot be registered under 80G then it is up to Revenue to take appropriate action in accordance to law regarding the certificate issued under Section 80G and it cannot be the other way round.