Missed Filing Income Tax Returns By July 31? Pay Upto Rs 10,000 Penalty & More (Check Full Details)
The last for filing an income tax return (ITR) was 31 July for any common citizen, who does not have to get their accounts audited.
For the last two years however, due to Covid-19 pandemic the government of India extended the due date for filing the ITR. Also there were some glitches in the revamped income-tax e-filing portal which needed to be fix last year.
However, the deadline was July 31. So, what happens in case you miss filing ITR on time? There is a penalty. Read to know more.
A Penalty of 1,000 to 5000 Rupees
The ITR which is filled post the deadline, is called as belated return and can be filed after the deadline. However, there is a penalty of Rs 1,000 in case it is below Rs 5 lakh per annum. But if the income is above Rs 5 lakh per annum, then there is a late fee of Rs 5,000.
Sudhir Kaushik, founder, taxspanner.com said that “Carry forward of losses (other than the loss from house property), if any, is not allowed if you miss the due date such as losses on the sale of property/shares/capital assets”.
For instance, if you have losses from the sale of shares and securities, in a normal course, you can carry forward such losses for 8 years. If in future, you have any gain from the sale of shares and securities, the gain is reduced by the losses for earlier years and only the net gain is charged to tax. Now, if the return is filed late, after 31 July 2022, the taxpayer cannot avail of this benefit of carrying forward losses. Similar is the case where the taxpayer has sold an immovable property which results in a loss for tax purposes, particularly because of the indexation benefit.
Interest on tax liability & No Revision
If you file your return late and there is any tax payable at the stage of filing the return of income, then the person is liable to pay interest @ 1% per month for delayed filing of the tax return. This interest is in addition to the penalty that is payable on delayed payment of taxes.
There are chances of error while filing the ITR and the same can be corrected if the ITR is filled well within the stipulated deadline. These ITRs can be revised by 31 December 2022.
However, if the ITR is filed late that there is no provision of revision in the same.
Following are the key points to remember:
• Those less than 60 years of age with an income of Rs 2.5 lakh per annum need to file ITR.
• Those above 60 years of age but less than 80 years with an annual income of more than Rs 3 lakh per annum need to file ITR.
• Senior citizens above 80 years of age with a yearly income of more than Rs 5 lakh are also required to
• file ITR.
• Taxpayers with annual income up to Rs 5 lakh will need to pay a late fee of Rupees 1,000.
• You can file belated ITR by December 31, 2022.
• On belated ITR, you will have to pay a late fee.
• Those with income over Rs 5 lakh per annum, will have to pay Rupees 5,000 as a late fee penalty.
• You will also have to pay interest on late payment of taxes and also for delayed filing of return.