There is an important news for tax payers. Let us tell you that the last day of the year is the last chance to file ITR. If you miss paying tax on this day, you will have to pay a heavy fine.
ITR Update: The last month of the year 2023 has started and now we are just a few weeks away from the new year 2024. However, before the start of the new year, one very important task is yet to be completed for some tax payers, which is to file the Income Tax Return i.e. ITR for the financial year 2022-23. Let us tell you that the last day of the year, 31st December, is the last chance to file ITR. After this, if the taxpayer files ITR, then both penalty and interest can be imposed on him. Therefore, if you have not yet filed your ITR, then file it as soon as possible.
According to Section 234F of the Income Tax Act, if a taxpayer files his ITR after the last date, he faces a penalty of Rs 5,000. However, tax payers whose income does not exceed Rs 5 lakh. The fine for them has been reduced to only Rs 1,000.
Along with the fine, interest will also have to be paid
Apart from this, interest is also charged on late filing of ITR. According to the rules, in case of late filing of returns, tax payers have to pay 1 percent interest on the unpaid tax amount under section 234A.
What will be the way forward?
If taxpayers miss the last date for filing ITR (31st December), it can have a huge financial impact on them. This is because both penalty and interest will be imposed on filing returns after this date. However, tax payers can file ITR for this financial year anytime in the next 24 months (till March 31, 2026) along with penalty and interest. But he cannot file an updated return to get back the tax paid.
If a tax payer misses even the due date of filing ITR, he will not be able to file the return for this financial year. Unless he himself receives a notice from the department to file ITR.
However, if due to some urgent reason he is not able to file ITR, he can seek condonation of delay under section 119. Also, he can request for an opportunity to file ITR by telling the reason for the delay to the department. In this case, a fine of Rs 10,000 and 1 percent interest will be imposed on him.
Apart from this, if ITR is not filed, a case can also be filed under Income Tax Act 276 CC. Therefore, if you have not yet filed your ITR, then file the return before the last date to avoid various difficulties that may arise later.
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