Income tax return (ITR) filing is an annual financial exercise carried out responsibly by millions of taxpayers around the world. It is a statement of the taxable income of a taxpayer from all possible sources and the tax paid on that income to the government in an assessment year. This article outlines the repercussion of missing the income tax return due date and is meant for individuals who are liable to pay income tax like Salaried persons, Business owners, self-employed professionals, income earners from a property or those with interest income.
Meeting ITR deadlines is crucial to evade interest and penalty imposed by the concerning authorities for late filing. This could lead to needless financial burdens you would want to avoid. Moreover, non-compliance with tax laws in your jurisdiction often attracts legal consequences
Individuals having an income that exceeds the limit prescribed by the income tax department must read this article.
Business owners and Self-employed professionals, who need to compute their annual, income can find this article helpful.
Those who earn a passive income like interest on savings deposit, rental income, could also benefit from understanding the consequences of missing the ITR due date.
A 'Fiscal Year' is a period of one year ending on 31st March every year, which taxpayers consider for filing their ITR.
'Income Tax Return' is a form used to file income tax with the Income Tax Department. It provides data of a taxpayer's income, tax payable, and the tax paid.
The 'Income Tax Return Due Date' is the last day by which you should file your ITR to avoid any late fee or penalties.
Your PAN, Aadhaar, bank account details, salary details, details of investments made under Section 80C, details of income from property, etc., are necessary for filing ITR. Ensure these are at hand when you are preparing to file it.
If you've missed the due date, your returns would come under 'Belated Return' category. File your belated returns in the same way you would have filed the original returns.
Visit the Income Tax e-Filing website and log in to your account. If you don't have an account, create one with your PAN number.
Select the 'File Income Tax Return' option and follow the onscreen steps to complete your ITR filing.
Ensure to select the correct assessment year and the ITR form applicable to you.
After filing, verify your return electronically.
Belated returns can be filed anytime before the end of the relevant assessment year or before completion of the assessment, whichever is earlier. Post this period, you cannot file a belated return.
Interest is charged under section 234A for not filing a return within the due date.
A late filing fee under section 234F will be charged for returns filed after due date.
Avoid delay in filing to prevent from paying interest and penalty.
Ensure to select the correct assessment year and ITR form relevant to your income source.
Avoid mistakes while entering your income details. Any discrepancy could lead to scrutiny from the tax department.
Q1. What happens if I don’t pay income tax?
A1. If you don't pay income tax, you may be liable to pay interest and penalties. In some cases, prosecution may also occur.
Q2. Can I file ITR after the due date?
A2. Yes, it is called belated return. However, it may attract late filing fees under section 234F of the Income Tax Act.
Q3. What is the last date to file an Income Tax Return for AY 2021-22?
A3. The last date to file an Income Tax Return for AY 2021-22 is 31st July 2022 for individuals and 30th September 2022 for businesses.
It is understandably difficult to keep up with multiple deadlines and forgetfulness can result in missing important ones. However, missing the ITR filing due date can lead you to pay fines and penalties. Timely payment of your taxes not only helps you avoid penalties and excessive burden, but also contributes towards your country's development.
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