ITR Filing for FY 2021–22 (AY 2022–23): Penalties And Loss Of Benefits If You Miss Income Tax Return Deadline

The last date to file an income tax return (ITR) for the financial year 2021-22 or assessment year 2022-23 is July 31, 2022. Individuals should file the returns within the stipulated time to avoid any kind of penalty. The deadline is applicable for those taxpayers whose account are not required to be audited however, the deadline for taxpayers whose accounts must be audited is October 31.

Anyone missing the July 31 deadline may file their ITR after paying a late fee of up to Rs 5,000 by the end of December. According to section 234F of the Income Tax Act, filing the ITR past the due date can attract a late fee of Rs 5,000 for people having an annual income of over Rs 5 lakh if they file their ITR by December 31 of the Assessment Year. This will rise up to Rs 10,000 if the ITR is filed after December 31st but before March 31 of the Assessment Year. ITR Filing for FY 2021–22 (AY 2022–23): From Claiming TDS Refunds to Loan Processing, Here Are 5 Important Benefits of Filing Income Tax Returns

This apart, if a person fails to file ITR within the due date and has an outstanding unpaid tax, then as per Section 234A of the I-T Act, interest on the outstanding tax amount is charged at 1 per cent per month since the prescribed due date. ITR Filing for FY 2021–22 (AY 2022–23): Key Things to Keep in Mind As Income Tax Return Filing Deadline of July 31 Nears

If a taxpayer misses the July 31 deadline of ITR filing other benefits in addition to the penalties will also be lost. This includes offsetting the losses from business operations or under the ‘Capital Gains’ option. If the ITR is filed within the due date, the government allows to carry them forward to the subsequent years.

The Income Tax department may send a notice in case of a delay or failure, which would prolong your legal issues. A court case may also follow if the I-T department is still dissatisfied with the notice's response and determines that it has a valid point. 

(The above story first appeared on LatestLY on Jul 30, 2022 04:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).