Rs 5,000 Penalty in case you Miss Income Tax FY22 Deadline; Know Details

ITR Filing for AY22-23: Tax season is sort of coming to an finish with the deadline to file earnings tax returns ending this week on July 31, which is that this Sunday. The CBDT and the Income Tax Department have refused to increase the deadline to file ITR for evaluation yr 2022-23which suggests taxpayers will positively have to keep up the due date with a purpose to keep away from penalties.

The Income tax division on its Twitter deal with has been reminding folks to file taxes by July 31 as there can be no extension. It has additionally been sending SMSes and e mail communications to taxpayers urging them to file their tax returns. “Over 3.4 crore ITRs filed till 26th July, 2022 & about 30 lakh ITRs filed on 26th July, 2022 itself. The due date to file ITR for AY 2022-23 is 31st July, 2022. File Now if not filed as yet! Avoid late fee,” it stated in a tweet dated July 27.

What Happens if You Miss ITR Filing Deadline?

Late Fees

Taxpayers who could not be capable of file their IT returns by July 31 can nonetheless file them until December 31 as belated return. However, that comes with a worth. The late submitting of tax return attracts a charge beneath Section 234F of the Income Tax Act and the penalty payable by assesses submitting a late return relying upon the diploma of delay.

As per Section 234F, a penalty of Rs 5,000 must be paid if one recordsdata belated ITR after July 31 by taxpayers with whole earnings of Rs 5 lakh and up. For taxpayers with lower than Rs 5 lakh whole earnings, the high quality quantity is Rs 1,000 whereas those that are exempt from paying earnings tax don’t have to pay any penalty.

Interest on Unpaid Tax

An curiosity of 1 per cent on excellent quantity is payable if one doesn’t pay an earnings tax after July 31, 2022. It doesn’t matter on this case whether or not the quantity was filed wrongly by mistake or not. As per the foundations, a taxpayer must pay the excellent tax together with this curiosity from July 31.

Moreover, if somebody pays this quantity after the fifth day of any month, the curiosity quantity of the complete month is to be paid.

No Option to Carry Forward Losses

If a taxpayer misses the July 31 deadline of ITR submitting different advantages along with the penalties will even be misplaced. This consists of offsetting the losses from enterprise operations or beneath the ‘Capital Gains’ choice. If the ITR is filed inside the due date, the federal government permits to hold them ahead to the next years.

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