ITR Filing 2023: Consequences of missing Income Tax Return deadline; last day alert
ITR Filing 2023: Today (July 31) is the last day to file income tax returns (ITR) for the assessment year 2023-24. As of 6:30 pm on July 30, more than 6 crore ITRs have already been filed.
The Income Tax department has issued an urgent appeal to all taxpayers to complete the filing process as soon as possible, as there will be no extensions in the deadline this year. Failure to file the returns before the deadline may lead to penalties and other consequences for the taxpayer. It is crucial to act promptly to avoid any adverse outcomes.
Consequences of late ITR filing
Taxpayers can complete the tax filing process even after the initial deadline has passed, but they will be subject to a late fee of Rs 5,000. The deadline for such late filings is December 31. However, if the taxpayer's total income is below Rs 5,00,000, the penalty will be limited to Rs 1,000. Taxpayers with total income lower than the basic exemption limit will not incur any late filing fees.
Interest on delayed tax filing: 1% per month
The Income Tax department levies interest at a rate of 1 per cent per month on the taxable amount if there is a delay in filing the return. This interest is applicable to the net taxable income after deducting TDS (tax deducted at source), TCS (tax collected at source), advance tax, and any other reliefs or tax credits allowed by the law. Even a single-day delay results in a full month's interest being charged in such cases.
Consequences of late tax filing on loss carry forward
Failing to file the tax return by the due deadline results in the forfeiture of carrying forward losses to future years, except for losses under the "income from house property" or unabsorbed depreciation categories, which can still be carried forward.
Imprisonment for late tax filing
Late filing of tax returns, particularly when the tax payable or evaded exceeds Rs 25,000, can result in imprisonment ranging from six months to seven years, in addition to monetary fines.
Importance of timely ITR filing
Claiming a refund for excess tax deducted is possible only after filing income tax returns. Taxpayers can receive interest on these excess deductions, but timely adherence to the prescribed filing schedule is essential. Failure to file ITR on time may lead to a delayed refund or even the loss of the refund altogether.
- With inputs from agencies
