ITR Filing 2022: What Are The Disadvantages of Filing Income Tax Return After July 31

ITR Filing Deadline Extension Latest News Today: According to income tax laws, a late filing fee of up to Rs 5,000 is imposed if a belated ITR is filed.

ITR Filing Latest News Today: After Revenue Secretary Tarun Bajaj said that the Central Government is not considering extending the last date for filing income tax returns, it is almost certain that the deadline for filing ITR is July 31. This deadline is applicable for individual taxpayers whose accounts are not required to be audited. If the taxpayers do not file ITR within the deadline, they will not only have to pay a late filing fee but there are other disadvantages as well.

According to income tax laws, a late filing fee of up to Rs 5,000 is imposed if a belated ITR is filed. However, for small taxpayers, the late filing fee is of Rs 1,000 if the income is not going beyond Rs 5 lakh. The fee for late filing of ITR is imposed under section 234F of the Income-tax Act, 1961. The late filing fee needs to be paid before the belated ITR is filed.

What are the disadvantages of filing belated ITR:

• If the individual taxpayers file an income tax return after the deadline, then they will not be able to carry forward the losses on income from capital gain, business and speculation. You can only adjust the losses from the sale of house property.
• Moreover, if there is an income tax refund due, then tax refund will be payable only if the ITR is filed and verified.
• The taxpayer is eligible for interest on income tax refund at the rate of 0.5% per month. However, if they file belated ITR to claim an income tax refund, then no interest is payable on the income tax refund.
• Under section 234F of the Income Tax Act, 1961, the taxpayer is required to pay a penalty of Rs 5,000 for delaying the ITR.
• If you file a belated ITR, you are not eligible to carry forward the losses
• With the timely filing of the ITR, the taxpayer is eligible to get an interest of 0.5 per cent per month on the refund amount. However, no such benefit is given in the case of a belated ITR.