The income tax return (ITR) deadline for the financial year 2021–2022 has passed. It’s OK if you have already submitted the return or if you are able to do so before the deadline. If, however, for any reason you fail to file your return by July 31, you still have until December 31, 2022. However, you will now be charged a late fee for this, and there will also be some additional financial repercussions.
FINE TO PAY
The late charge is Rs 1,000 for taxpayers with an annual income up to Rs 5 lakh. If your yearly income exceeds Rs. 5 lakh, the late fee is Rs. 5,000. You won’t be required to pay a penalty for the late filing, though, provided your gross total income does not exceed the basic exemption amount.
Your preferred income tax system will determine the basic exemption cap. The basic tax exemption limit for people under 60 years of age under the previous income tax system is Rs 2.5 lakh. The baseline exemption level is set at Rs. 3 lakh for those between the ages of 60 and 80. The exemption cap is set at Rs. 5 lakh for those above the age of 80.
The baseline tax exemption ceiling under the new favourable income tax system is Rs 2.5 lakh, regardless of the taxpayers’ age.
Gross total income is the total income before deductions are applied in accordance with sections 80C to 80U of the Income Tax Act. Missing deadlines can have more consequences than just being charged a late fee. You will be obliged to pay interest on the late payment of taxes if you miss the deadline.
You can simply deposit the unpaid tax if the return is filed prior to the deadline. If you don’t meet the deadline, you will have to retroactively deposit the tax balance plus interest as of July 31. If the unpaid balance is paid after the fifth day of any given month, interest will be charged at a rate of 1% per month for the whole month.
By adjusting losses from commercial activities or the sale of property against other revenues, a taxpayer can lower their responsibility. The ITR must be submitted prior to the deadline in order for the losses to be carried forward.
Losses Which Cannot Be Carried Forward After The Due Date
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 next year.
Consequences
In the event that you miss the July 31 deadline, the deadline for submitting a late income tax return for the financial year 2021–2022 is December 31, 2022. You would have to submit an appeal for condonation with the commissioner of income tax of your ward for a refund and losses carried forward if you too missed the December 31 deadline.
For revised returns, you must utilise a new ITR U form and provide justification for the changed revenue. The following are some possible causes: previously unfiled returns; income that was not reported accurately; incorrectly selected heads of income; reduction of carried forward losses; reduction of unabsorbed depreciation; reduction of tax credits under Sections 115JB/115JC; incorrect tax rate; and others.
Image Credit: IncomeTaxDepartment
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Excellent updates …keep it up…