2022-08-21
What if you missed the ITR filing Due Date?
ITR Filing
For the Assessment Year 2022–23 and the Financial Year 2021–22, the deadline to file an income tax return was July 31. Some taxpayers and experts had been holding out hope for a last-minute miracle, but it never materialized because the government refused to extend the deadline for filing ITRs. So let us now comprehend what really happens if the ITR deadline is missed or what is rationale behind the mandate that tax returns must be submitted on time. Before we begin, let us understand who needs to file their ITR returns:
A tax return must be filed by everyone whose gross income (before deductions and exemptions) exceeds Rs. 2.5 lakh. Only seniors over 75 who meet specific requirements are excluded from filing taxes. You must file taxes even if your gross annual income is less than Rs. 2.5 lakh if you:
- recorded more than Rs. 60 lakh in total sales, turnover, or gross receipts.
- had above Rs. 10 lakh in total gross income from their profession.
- have a TDS or TCS of at least Rs. 25,000 (Rs. 50,000 for senior citizens) on capital gains income.
- paid more than Rs.1 lakh in electricity bills.
- spent Rs. 2 Lakhs or more on an international travel.
- possess foreign assets & income.
- deposited more than Rs. 1 crore in their current account.
- deposited more than Rs. 50 Lakhs in their savings account.
Can you file your ITR after the due date? Is there any penalty?
Yes, you can file your ITR after the respective due date. The same is referred as Belated Return. Some taxpayers will incur a minor fine, but if they wait any longer, their situation can deteriorate. The good news is that there is no penalty for paying taxes late if the individual's gross income is less than Rs. 2.5 lakhs. However, keep in mind that this is the total income before any deductions or exemptions. For example, if your income was Rs. 5.5 lakh but your deductions only made it Rs. 4.8 lakh, you will still be subject to a Rs. 5,000 non-filing penalty. The loss that late filers will experience is not limited to the penalty. Additionally, they will not be able to carry forward their losses (if any) for the next assessment years. These Capital losses can be carried forward for up to eight fiscal years by taxpayers who submitted their taxes by July 31.
Carrying forward is a provision or a term that permits taxpayers to apply a tax loss to a future tax year in order to offset a gain or profit. A professional or an organization might use this tax loss carried forward to lower future tax payments. Income from agriculture, for instance, is exempt from taxes. Therefore, a taxpayer's loss resulting from agricultural activity cannot be offset by any other taxable income. The Indian Income tax law gives taxpayers several benefits for suffering losses & this is one from it. However, you forfeit this tax benefit if you file your taxes after the deadline.
Do you need to take care of any further process while filing ITR?
Yes! It is, to e-verify your IT Returns. e-Verification is just one method of verifying your filed ITR. You have a choice between two ways to confirm your ITR filing: online e-Verify returns or. Send a hard copy of your ITR-V that has been properly signed to CPC, Bangalore. The time frame for e-verifying returns that were submitted after the deadline of July 31 has also been shortened by the government. According to a circular released, returns filed on or after August 1 will require e-verification by the assessee within 30 days after filing. Returns that are not e-verified within 30 days will be ruled invalid. The deadline for submitting a late return is December 31. Beyond that, you won't be allowed to file your return except in response to a notice from the tax department if you also miss that deadline!
Lastly, Even if you do not have taxable income, it is still a good idea to file a tax return. Your tax history can aid in future loan applications, just as your credit history. Additionally, a lot of nations verify the financial information of visa applicants, and the ITR can be a very helpful record in this regard. Thus, it is important to file your taxes on time in order to take advantage of the benefits offered and avoid any penalty for its delay.
- TEAM IFA