The date of 31 July has passed when the Income Tax Return (ITR Filing) was to be filed. More than 63.47 lakh returns had been submitted till 10 pm on Sunday (July 31), the last date for submission of Income Tax Return (ITR) for the financial year 2021-22.
The tax department has been continuously requesting the people to submit the returns within the stipulated time to avoid the burden of late fines. Earlier, till July 30, more than 5.10 crore returns had been filed. Those who have filed their return by 12 midnight on 31st July will not be required to pay late fee. But those who missed this date, now they will have to pay the late fee.
Let us first know that what is the last date for filing ITR of different taxpayers for the financial year 2021-22 or assessment year 2022-23. The last date for individual or HUF or AOP or BOI (whose accounts are not to be audited) was July 31, which has passed. The deadline for the accounts to be audited is 31 October 2021.
Business people whose TP report is required can file ITR till November 30. But what will people do now, whose date of 31st July has passed and they could not file their returns due to some reason?
Such people will be able to file their return till December 31, 2022, but there will be some conditions. This return is called belated return, late return or revised return. Under this facility, if you fill the return, you will have to bear some loss. These disadvantages include penalty, interest and deprivation of setoff benefits.
how much interest will be charged
Interest will have to be paid on filing ITR after the due date. This interest will be added on your tax liability at the rate of 1%. For this, a special provision has been made in section 234A of the Income Tax Act. 1 percent interest is added at the rate of every month. The unpaid tax (unpaid tax) will attract 1% interest.
Late fee will also have to be paid
You have to pay late fee under section 234F. This fee is applicable when you file ITR after the due date. You may have to pay a fee of up to Rs 5,000 under section 234F. If your income is less than 5 lakhs in a year, then the late fee amount will be Rs 1,000.
Setoff will not be a loss
The biggest disadvantage is not setting off losses. When you file ITR before the stipulated time, you get a chance to show and set off losses in stock market, mutual fund, property or business along with next year’s income. But people filing returns after the due date cannot take advantage of this facility. Only those people who file returns before the deadline can show their losses in ITR.
So, you can definitely file belated, revised or late return, but keep in mind the disadvantages mentioned above. Be ready to face it. Failure to file the return on time can result in prosecution or even jail term. But this happens when the tax liability exceeds Rs.10,000.
