ITR Filing: What If You Miss The Deadline? Penalties And Loss Of Benefits After July 31

ITR filing: The last date to file income tax return for FY 2021-22 (AY 2022-23) is July 31. As the government has made it clear that there will be no extension on the deadline to file ITR, a taxpayer must ensure that ITR is filed on or before Sunday.

Income Tax Return: 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. Unlike in the previous years, the deadline for ITR filing this time may not get an extension. So, 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. The income tax department via its official Twitter account, emails and SMSs has been reminding taxpayers about the last date to file ITR.

Penalty for missing the ITR filing deadline

As the government has made it clear that there will be no extension on the deadline to file ITR, a taxpayer must ensure that ITR is filed on or before Sunday (July 31). If the ITR is filed after the deadline, then it is termed as a belated ITR.

A taxpayer will be required to pay a late filing fee for filing a belated return. This fee of Rs.5,000 is levied under section 234F of the Income-tax Act, 1961. However, for small taxpayers having total income up to Rs.5 lakh, late filing fee will not exceed Rs 1,000. This fee must be deposited before the belated ITR is filed.

Why should you file ITR on time?

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.

What happens if taxpayers do not file ITR at all?

Now, if taxpayers do not file ITR at all, they will not be able to carry forward the losses of the current assessment year. Also, a penalty may be levied, which is a minimum of 50 percent of the assessed tax or a maximum of 200 percent of the assessed tax.

What are the benefits of filing ITR on time?

• Having a good track record of filing ITR makes it easier in getting loans approved.
• If an ITR is filed before the deadline, the income tax regulations permit carrying over losses to the following fiscal year. This enables taxpayers to pay less tax on their future income.
• Filing ITR on time can help you in getting visas quickly i.e. an application for a visa can be processed more quickly if you have a better record of filing your taxes, as it clearly shows your income and acts as a proof document.

How to file ITR on the Income Tax Website

1. Go to https://eportal.incometax.gov.in/
2. Login using PAN/Aadhaar
3. Click on File Return
4. Select Mode of Filing, Relevant Assessment Year
5. Follow all instructions. And select the correct ITR form (ITR-1 for individuals with salary income)
6. Validate pre-filled return. This will have all the details provided by your employer to the tax department through Form 16.
7. Edit Pre-filled return if required and submit.
8. Verify your ITR and wait for the refunds (if any)

What ITR form is applicable to you?

One must choose the correct ITR form while filing their tax return. If the wrong ITR form is used for filing income tax return, then such return will be termed as defective return, and the tax department will send you a notice in this regard.

The income tax return form applicable to you will depend on the sources of income earned by you during the financial year.

If an individual has income from salary, one house property, other sources such as interest income, dividend, agricultural income up to Rs 5,000, then he/she is eligible to file tax return using ITR -1.

However, if the total income exceeds Rs 50 lakh or he/she has income from capital gains, or holding unlisted equity shares, then he/she will be required to file ITR-2.

For individual having income from business or profession, one must file income tax return using ITR-3 or ITR-4 as applicable.