Income Tax Rules: If you do not file ITR by the due date for the financial year 2022-23, then belated returns will have to be filed. For this, you are being given time till December 31, 2023 by the department.
If you have not yet filed ITR, then do it before 31 July. Filing ITR on time is good for you in many ways. If you do not file ITR by the due date for the financial year 2022-23, then belated returns will have to be filed. For this, you are being given time till December 31, 2023 by the department. If you are also unable to file ITR by July 31, 2023 for any reason, then you may suffer the following losses.
Late ITR filing attracts a penalty of Rs 5,000 for individuals with income above Rs 5 lakh. The fine is Rs 1000 on income up to Rs 5 lakh. Also, non-filing of ITR on time may result in loss of certain tax deductions and exemptions. Eventually, this may increase your tax liability. If you file ITR after December 31, 2023, then you will have to pay a fine of Rs 10,000.
Interest on Late Filing
If your income is taxable, then for not filing the return by 31st July, you will be charged additional interest at the rate of 1% every month till the ITR is filed. Under this, an interest of 1% is levied till the date of filing the return. After 31st December the assessee shall have the option to file the updated return only in case tax is due but is to be paid for the updated return up to 31st March 2024.
The prosecution
can be fined up to 50% for under-reporting income and up to 200% for misrepresenting income. Experts say that if the tax return is not filed despite the reminder, the authorities may have to start the prosecution process on the basis of outstanding tax. In this, there can be imprisonment from three months to 7 years.
There is no benefit of the new tax regime,
if you are late from March 31, then the salaried employees cannot select the option of the new tax regime. If they select this option with the employer, then additional tax and interest will have to be paid for late filing of ITR. Let us tell you that in the budget presented on February 1, the Finance Minister had kept income up to Rs 7 lakh tax free under the new tax regime.
Delay in refund
Another disadvantage of filing late ITR is that if you get tax refund then it can be delayed. Such delays can lead to unnecessary financial stress and inconvenience. Additionally, late filing of ITR may attract the attention of the authorities. This increases the chances of audits and inquiries in their tax matters.
