For the financial year, 2021–2022 or assessment year 2022–2023, income tax returns (ITRs) must be filed by July 31st, 2022. It's fine if you have already submitted the return or if you are able to do so before the deadline. But what happens if you don't submit the ITR by the deadline of July 31?
If you miss the July 31 deadline, you still have until December 31, 2022, to file the return. However, there will be a late fee. There will be further financial repercussions as well.
For taxpayers with an annual income up to 5 lakh rupees, there is a 1,000 rupee late fine. The late fee is 5,000 if your annual income is greater than 5 lakh rupees.
However, you won't be required to pay a late filing penalty if your gross total income is less than the basic exemption amount.
The basic exemption threshold is determined by the income tax system you select. For taxpayers under 60, the basic tax exemption level under the previous income tax system is set at 2.5 lakh. The fundamental exemption threshold for those aged 60 to 80 is set at 3 lakh. The exemption threshold for those over 80 is set at 5 lakh.
The basic tax exemption level is 2.5 lakh rupees under the new concessional income tax scheme, regardless of the taxpayers' age.
Gross total income is the amount of income before any deductions allowed by sections 80C through 80U of the Income Tax Act.
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.
"While filing an ITR, there may be some tax due on things like interest and dividends. TDS deducted at 10%, but you are in the 20% or 30% tax bracket, then the difference in tax must be paid with interest in accordance with Section 234A at a rate of 1% per month "declaring Sudhir Kaushik, CEO and Co-Founder of TaxSpanner.
You can just deposit the unpaid tax if you file the return before the deadline. However, if you miss the deadline, you will be compelled to retroactively deposit the unpaid tax and interest as of July 31. The interest for the entire month must be paid at a rate of 1% per month if the unpaid balance is paid after the fifth day of any given month.
If the due date is missed, you are not permitted to carry forward any losses (except the losses from the personal property). Losses on sales of real estate, stock, and capital assets that were compelled to be sold during the Corona should be reported and lodged prior to the deadline.