The income tax return (ITR) deadline for the fiscal year 2021–2022 has passed.
It is fine if you have already submitted the return but for any reason if you failed to file your return by July 31, you still have time until December 31, 2022, by paying a late fee. However there are other repercussions too along with the late fee.
“Missing deadlines have several consequences in addition to the late fees. You will have to pay interest on the late tax payment if you miss the deadline” said, Himachal based Charted Accountant, Umesh Waliya.
According to the Income Tax Act of India, income tax is charged on every individual, HUF, partnership, LLP, and corporate income. If an individual’s income exceeds the minimal threshold limit, they are subject to the slab system of taxation (known as basic exemption limit )
Talking about the basic exemption , Waliya, said that” the basic exemption threshold is determined by the income tax system one select. The baseline tax exemption ceiling is Rs 2.5 lakh under the new concessional income tax regime, regardless of the taxpayers’ age. The basic exemption threshold for those aged 60 to 80 is set at Rs 3 lakh. The exemption ceiling for those above 80 is set at Rs. 5 lakh.
Adding further about the late fine he explained that , For taxpayers with a yearly income up to Rs 5 lakh, there is a Rs 1,000 late fine. The late fee is Rs 5,000 if your yearly income exceeds Rs 5 lakh. However, you won’t be required to pay a late filing penalty if your gross total income is less than the basic exemption amount”.
According to ITR guidelines, If any one file return before the due date, can simply deposit the unpaid tax. But if someone miss the deadline, than one has to submit the unpaid tax, as well as the interest, retroactively from July 31. If the outstanding balance is not paid before the 5th of the month, the interest for the entire month must be paid at a rate of 1% per month.
A taxpayer’s burden can be reduced by offsetting losses from company activities or the sale of property against other income. However, losses can be carried forward only if the ITR is filed before the deadline.
If the ITR is not submitted by the deadline, a taxpayer will not be permitted to carry forward any losses for the current year. As a result, no loss under the “business income,” “capital gains,” or “housing property” heading over Rs 2 lakh may be carried over to the following year.
In case you miss the , December 31, 2022, deadline for submitting a late income tax return for the fiscal year 2021–2022 one would have to submit an appeal for condonation with the commissioner of income tax of your ward for a refund and losses carried forward