Now only two weeks are left for the last date to file income tax return for the financial year 2022-23. Like last year, this time also the last date for filing income tax return is 31st July. Still crores of taxpayers have not filed their ITR. If you are also among these crores of people, then let us tell you that the consequences of not filing ITR till the deadline can be very heavy. In such cases, you may also have to go to jail.
Law and order of income tax
There are many disadvantages of not filing income tax return on time. On one hand you are deprived of many benefits. On the other hand, there are many direct disadvantages too. First of all, you will have to pay penalty for filing ITR after the deadline, which can be quite high in some cases. At the same time, in some circumstances, you can also be sent to jail for many years. Today we are going to tell you what the rules and regulations of income tax say about late ITR filing…
So many returns filed so far
Income Tax According to the department’s portal, about 3 crore ITRs have been filed so far this season. Last time this figure was more than 5.50 crores. This means that there are still more than 2.50 crore people who have not been able to file ITR due to some reason. Such people can file returns even after the July 31 deadline, but after incurring some losses.
Can also file returns till December
Income Tax Department billed to taxpayers Gives the facility of returns ie delayed returns. You have to pay the cost to file belated ITR. Under Section 139 (4) of the Income Tax Act, 1961, filing income tax return after the due date is called belated return. Belated returns can be filed up to 3 months before the end of the current assessment year or completion of the assessment year. Belated returns can be filed by 31 December 2023 for the financial year 2022-23 i.e. assessment year 2023-243. Means taxpayer has 5 months even after the deadline to file belated ITR.
How much penalty for filing belated ITR?
As per income tax rules, any taxpayer, who has Has not filed return till 31st July, can file belated return by paying late fee. The late fee will be Rs 5,000 for income above Rs 5 lakh. For small taxpayers, whose income is less than Rs 5 lakh, the penalty will not exceed Rs 1,000.
Disadvantages of ITR filing after the deadline
If a taxpayer fails to file income tax return by the deadline and files belated return, then the loss (except house property loss) will not be allowed to be carried forward to the next years. These losses can be carried forward up to 8 years.
Taxpayer gets interest at the rate of 0.5 per cent per month on the refund amount if ITR is filed on time. Suppose someone filed the return before July 31, then interest will be received from April, until the refund is received. If someone files the return in September, he will not get interest for 2 months (August and September).
If any kind of tax liability arises while filing belated ITR, interest will be charged as penalty. Penal interest under section 234A, 234B and 234C will be applicable depending on the type of tax owed. Penalty under section 234A is applicable for not depositing self-assessment tax before 31st July. Similarly, failure to pay 90 per cent of advance tax before March 31 will attract penalty under section 234B. Penal interest @ 1% per month is applicable.
Refund is delayed in filing belated returns. If your tax refund is made, it will be available only if it is verified after filing the return. Delay in ITR filing will result in delayed processing and delayed refund.
If any discrepancy is detected after filing the belated return, the taxpayer can revise the belated ITR. If the Income Tax Department has doubts even after that, it can investigate the matter and in such a case the taxpayer can be imprisoned for up to 7 years.
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