Taxpayers are hoping for an extension in the deadline for income tax return (ITR) filing, however, the chances are bleak. The due date for filing ITR for financial year FY2021-22 of the assessment year 2022-23 ends on Sunday. ITR Filing: Fail to file before deadline, here is chance to file. Earlier this month, the government has already made it clear that there will be no extension in the deadline, and taxpayers are required to file their ITR on or before July 31.
Even if a taxpayer misses the deadline for filing income tax return ITR, the government does allow taxpayers to complete the process by December 2022-end. However, there will be an added penalty after July 31. If you miss the July 31 deadline, you can still file the return by December 31, 2022. However, you will have to pay a late fee. It will also have some other financial consequences.
The late fee for the taxpayers whose annual income is up to Rs 5 lakh is Rs 1,000. If your annual income is more than Rs 5 lakh the late fine is Rs 5,000. However, if your gross total income does not exceed the basic exemption limit, you will not be liable to pay a penalty for the late filing.
The basic exemption limit depends on the income tax regime you choose. Under the old income tax regime, the basic tax exemption limit stands at Rs 2.5 lakh for taxpayers below 60 years of age. For people between 60 and 80 years of age, the basic exemption limit is fixed at Rs 3 lakh. For people above 80 years of age, the exemption limit stands at Rs 5 lakh.
Under the new concessional income tax regime, the basic tax exemption limit stands at Rs 2.5 lakh, irrespective of the age of the taxpayers. Gross total income refers to the total income before taking into account the deductions under sections 80C to 80U of the Income Tax Act. Apart from the late fee charges missing deadlines have several other implications.
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If you miss the deadline you will be required to pay interest on the late payment of taxes. “There could be some tax payable while filing ITR for example interest and dividend. TDS deducted at 10 per cent, but you are in say 20 per cent or 30 per cent tax slab, hence the differential amount of tax is to be paid with interest as per Section 234 A at the rate of 1 per cent per month.
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If you file the return before the due date you can just deposit the outstanding tax. However, if you miss the deadline, you will be required to deposit the outstanding tax along with the interest, retrospectively from July 31. If the outstanding dues are paid after the 5th of any month, the interest of the full month will have to be paid at a rate of 1 per cent per month.
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