New Delhi: The due date for income tax return (ITR) filing for the financial year 2021-22 or assessment year 2022-23 is July 31, 2022. If you have previously documented the return or figure out how to record it before the due date, it’s great. But, what happens if you fail to file the ITR before the July 31 deadline?
If you miss the July 31 deadline, you can still file the return by december 31, 2002. However, you will have to pay a late fee. It will also have some other financial consequences.
The late expense for the taxpayers whose yearly pay really depends on ₹ 5 lakh is ₹ 1,000. Assuming your yearly pay is more than ₹ 5 lakh the late fine is ₹ 5,000.
Be that as it may, in the event that your gross all out pay doesn’t surpass the fundamental exclusion limit, you won’t be obligated to suffer a consequence for the late documenting.
The fundamental exception limit relies upon the personal expense system you pick. Under the old annual assessment system, the fundamental duty exception limit remains at ₹ 2.5 lakh for citizens under 60 years old. For individuals somewhere in the range of 60 and 80 years old, the essential exception limit is fixed at ₹ 3 lakh. For individuals over 80 years old, as far as possible stands at ₹ 5 lakh.
Under the new concessional income tax regime, the basic tax exception limit remains at ₹ 2.5 lakh, independent of the age of the taxpayers.
Gross total income refers to the total income before taking tax exemption into account the deductions under sections 80C to 80U of the Income Tax Act.
Apart from the late fee chargers missing deadlines have several other implications. If you miss the deadline you will be required to pay interest on the late payment of taxes.
“There could be some tax payable while documenting ITR for example interest and profit. TDS deducted at 10%, yet you are in say 20% or 30% expense chunk, hence the differential measure of duty is to be paid with revenue according to Section 234 A at the pace of 1% per month,” said Sudhir Kaushik, Co-Founder and CEO, TaxSpanner.
If you fill the return before the due date you can just deposit the outstanding tax. However, if you miss the deadline, you will be required to deposit the outstanding tax along with the interest, retrospectively from July 31. If the outstanding dues are paid after the 5th of any month, the interest of the full month will have to be paid at a rate of 1% per month.
A citizen can lessen responsibility by balancing the misfortunes from business tasks of the offer of property against different salaries. Be that as it may, the misfortunes must be conveyed forward assuming the ITR is filed before the due date.
“Carry forward of losses (other than misfortune from house property), in the event that any isn’t permitted assuming you miss the due date. Losses on sale of property/shares/capital assets those were forced to sell during corona should be declared and filed before the due date,”said Sudhir Kaushik, co-Founder and CEO, Taxspanner.
As per the Income Tax law, business loss (other than speculative business) can be set off against any head of income except income from salary. Any unadjusted loss can be carried forward for eight financial years immediately succeeding the current financial year and set off against any business income, as prescribed. For example, business losses incurred in the financial year 2020-21 can be set off against business income in the financial year 2021-22 and subsequent years.
You might get notice from the Income Tax Department for not filing or mismatch.
On the chance of notice from the Income Tax Department, Kaushik said, “during Covid pandemic numerous people have put resources into value as we are seeing while at the same time recording ITR and AIS (yearly data proclamation). So charge sees for confuses of pay/misfortune pronounced can likewise be anticipated.”
On the off chance that you miss the 31st July cutoff time, the last date for documenting the late annual government form for the monetary year 2021-22 is 31st December 2022.
On the off chance that you miss even the 31st December 2022 cutoff time, for discounts and misfortunes, you would be expected to document an interest for approbation with the chief of personal assessment of your ward for discount and misfortunes conveyed forward. “Assuming the explanation is bonafide you might get the consent,” said Kaushik.
There is a colossal punishment in the event that you owe charges. “In the event that you find extra pay in AIS or different reports which were not pronounced in unique return or not documented by any stretch of the imagination then you need to pay 50% extra duty of this forthcoming expense sum if recording refreshed return in something like a year and 100 percent extra if recording following one however before two years,” he said.
In the event that you miss the 31st December cutoff time, another structure ITR U must be utilized for refreshed return and give purposes behind refreshing your pay. The reasons could be: return already not recorded; pay not announced accurately; wrong heads of pay picked; decrease of conveyed forward misfortune; decrease of unabsorbed devaluation; decrease of tax break u/s 115JB/115JC; wrong pace of expense and others.