The late payment fee for taxpayers with an annual income of up to Rs 5 lakh is Rs 1,000.
New Delhi:
The due date for filing an income tax return (ITR) for fiscal year 2021-22 or assessment year 2022-23 is July 31, 2022. If you filed a return or managed to file by the due date, good and good. However, what happens if you don’t file your ITR by the July 31 deadline?
If you miss the July 31 deadline, you can still file your tax return by December 31, 2022. However, you will have to pay a late fee. It will also have some other financial consequences.
The late payment fee for taxpayers with an annual income of up to Rs 5 lakh is Rs 1,000. If your annual income is more than Rs 5 the late penalty is Rs 5,000.
However, if your gross income does not exceed the basic exemption limit, you will not have to pay a penalty for late filing.
The basic exemption limit depends on the income tax regime you choose. Under the old income tax regime, the basic exemption limit was Rs 2.5 lakh for taxpayers under 60 years old. For those aged 60 to 80, the basic exemption limit is Rs 3 lakh. For those over 80 years old, the exemption limit is Rs 5 lakh.
Under the new preferential income tax scheme, the basic tax exemption limit is Rs 2.5 lakh, irrespective of the age of the taxpayer.
Gross income is gross income before accounting for deductions under sections 80C to 80U of the Income Tax Act.
In addition to late fees, lack of deadlines has a number of other effects. If you miss the deadline, you will have to pay late tax interest.
“There may be some taxes to be paid while filing the ITR, such as interest and dividends. TDS is 10% deductible, but you’re saying that the tax is 20% or 30%, so the tax difference. The difference is payable with interest under Section 234 A at the rate of 1% per month,” said Sudhir Kaushik, Co-Founder and CEO, TaxSpanner.
If you file your return before the due date, you can simply deposit the unpaid tax. However, if you miss the deadline, you will have to deposit the outstanding tax amount with interest, which will be arrears from July 31. If the fee is unpaid after the 5th of any month, the interest will of the whole month will have to be paid at the rate of 1 percent per month.
Taxpayers can reduce their liability by offsetting business losses from the sale of the property with other income. However, losses can only be carried forward if the ITR is filed before the due date.
“Losses are not allowed to be carried forward (except for losses from residential properties), if any if you miss the due date. Loss due to sale of property/shares/capital property that is forced to be sold during the period. corona must be declared and filed before Sudhir Kaushik, Co-Founder and CEO, TaxSpanner, said.
Under Income Tax law, business (non-speculative) business losses can be calculated on any income except wage income. Any unadjusted loss can be carried forward for eight fiscal years immediately following the current fiscal year and offset against any business income, as required. For example, business losses incurred in fiscal year 2020-21 can be deducted from business income in fiscal year 2021-22 and subsequent years.
You may receive a notice from the Income Tax Department about a failure to file or a mismatch.
Regarding the possibility of announcements from the Income Tax Department, Kaushik said, “during the Covid pandemic, many individuals have invested in equity as we are witnessing while filing ITR and AIS (informational reporting). annually) is also expected.”
In case you missed the July 31 deadline, the last day to file your income tax return for the 2021-22 fiscal year is December 31, 2022.
In case you miss even the 31 December 2022 deadline, for returns and losses you will have to file an apology appeal with your ward income tax commissioner for refunds and losses are carried over. “If the reason is not justified, you can ask for permission,” Kaushik said.
There will be a huge penalty if you owe taxes. “If you find additional income in the AIS or other documents that were not declared on the original return or were not filed at all, you must pay an additional 50% of this pending tax if you file the return. updated declaration within one year and 100% additional if filed after one but before two years,” he said.
In case you miss the December 31 deadline, a new form ITR U must be used to update your return and state your reason for updating your income. Possible reasons are: previous return not filed; income is not reported correctly; wrong selection of income heads; forward loss reduction; reduce unabsorbed depreciation; reduce tax credit u/s 115JB / 115JC; wrong tax rate and other amounts.
