If your income is subject to tax, if the return is not filed by July 31, you will be charged additional interest at the rate of 1% every month until the ITR is filed.
Bengaluru: It is mandatory to file ITR before 31st July. If the ITR is not filed by the due date for the financial year 2022-23, then a billed return will have to be filed. Time is being given till December 31 to file billed return. If the ITR is not filed by July 31, 2023, the following losses will have to be incurred.
Penalty to be paid:
Individuals with income above Rs 5 lakh will have to pay a penalty of Rs 5,000 if they file ITR late. 1000 for income up to 5 lakhs. A fine has to be paid. Also, not filing ITR on time may result in loss of certain tax exemptions . In this case the tax liability may increase. 10,000 if ITR is filed after December 31, 2023. A fine has to be paid.
Interest on Late Filing :
If your income tax return is not filed by July 31, you will be charged additional interest at the rate of 1% every month till the ITR is filed. If the tax is due after December 31, they have the option to file an updated return. But the updated return is due till 31st March 2024.
Penalty of up to 50% for under-declared income and up to 200% for false declaration of income. If the tax return is not filed despite the reminder , the authorities may have to initiate the prosecution process on the basis of the outstanding tax. It can be punished with imprisonment from 3 months to 7 years.
No benefit from new tax regime:
If it is later than March 31, salaried employees cannot opt for the new tax regime option. If he chooses this option with the employer, he will have to pay additional tax and interest if the ITR is filed late. In the budget presented on February 1, the Finance Minister has exempted income up to Rs 7 lakh under the new tax regime.
Delay in Refund:
Another disadvantage of filing ITR late is that the tax refund may also be delayed. Such delays add unnecessary financial stress and inconvenience. Late filing of ITR can also attract the attention of the authorities. Increases chances of facing audits and inquiries in tax matters.
