The deadline for filing income tax returns for the financial year 2022-23 for salaried individuals and those who do not have to get their accounts audited ends today (July 31, Monday)
According to the Income Tax Department on Sunday, over 6 crore tax returns have been filed for the previous year, and over 11 lakh returns have been filed upto 12 pm on Monday, including 3.39 lakh in the last hour.. The number of ITRs filed has exceeded the number of returns filed last year till July 31.
“We extend our gratitude to taxpayers and tax professionals for helping us reach this milestone, and urge all those who haven’t filed ITR for AY 2023-24, to file their ITR at the earliest to avoid last minute rush,” the IT department tweeted on Sunday.
So what happens if you miss the deadline?
Missing the deadline for filing IT returns entails late fees and extra interest. However, the process can still be completed after the last prescribed date. Any salaried individual who has missed the ITR deadline can file a belated return till December 31, with the addition of a late filing fee.
Individuals whose income exceeds Rs 5 lakh per annum will have to pay Rs 5,000 as late filing fees, if they are filing ITR after the last date, under Section 234F of the Income Tax Act, 1961. The penalty for those who earn below Rs 5 lakh per year is Rs 1,000.
In the case of a belated ITR, many losses in the business or capital cannot be carried forward in the coming years. Additionally, late filers have to pay penal interest at the rate of 1% for each month after the due date has passed.
An individual is eligible for interest on income tax refund, if filed on time. However, no interest is payable in the case of a belated return. In some cases, such taxpayers can also face prosecution or imprisonment if they intentionally refuse to file their return after notices by the IT Department.
If a citizen does not submit the information specified in Section 44AA on time, he will be fined up to Rs. 25,000 under division 271A. If the assessed person enters the international exchange, the penalty is 2% of the international exchange or domestic order price.
A fine of Rs 1,50,000 or Rs 0, whichever is lower, if the evaluator fails to review their records, obtain an audit report, or issue such publications. 5% of all sales, turnover or total revenue. A fine of Rs 100,000 will be imposed if the assessor fails to submit audited documents relating to foreign trade.
If a citizen is deemed not to have paid his tax liability, for example, if he fails to pay within the specified time after notification under Article 156, the might force a punishment not exceeding the tax in arrears as per Section 221(1).
In case individuals miss the deadline for a belated ITR on December, they can still file an updated return, or ITR-U, for the previous financial year, which can only be done at the end of the current assessment year, i.e., April 1, 2024, with additional interest rates.
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