Do you fear the process of filing income tax return? Does the thought of late filing and income tax penalty fill you with dread? Well, the income tax season can be a bit overwhelming for most of us. Getting our finances together and furnishing proof of said investments is a hectic time for all of us. While some people find filing their income tax returns an annual chore, some don’t have the time for it, and some just hate the complexities of the process so much, they pass it on to a professional. No matter which category you belong to, you shouldn’t miss filing your ITR on time.
Filing income tax is essential for every tax-paying citizen. If you miss the deadline, you will incur a penalty on top of the inconveniences you must face. For FY 2022-23, the last date to file your income tax returns is July 31, 2023. According to the Revenue Secretary, the date will not be extended for taxpayers whose ITR doesn’t require an audit.
If individuals fail to submit their ITR by the deadline, they will have to pay the penalty of ₹5000 for late filing of an income tax return. It has been revised from the earlier upper limit of ₹10,000.
In case your annual income is less than ₹5,00,000, then your penalty for late filing is ₹1000.
|July 31, 2020||Rs 0||Rs 0|
|July 31, 2023 to March 2024||Rs. 1,000||
Beside paying the penalty, here are some compelling reasons as to why you should not miss the ITR filing deadline. Listed below are a few of them.
Less time for revisions – One of the most common reasons people dread filing their Income Tax Returns is because of the chances of making an error. And even the smallest mistake can cause you unnecessary worry and stress. Add to that the deadline for filing income tax returns, and you have to be doubly sure that no mistake is made. As per the revised government rules, you only have time until the end of that particular assessment year to make any changes or revisions to your ITR.
Earlier, the window to rectify mistakes and resubmit the ITR was 2 years. Then the government changed this period to just 1 year from the end of the financial year. Which means that the sooner you get done with your Income Tax filing, the longer you have to spot errors and apply for rectifying your ITR file. Apart from having to pay an income tax penalty, avoiding the hassle of having to resubmit an erroneous ITR is another good reason why you should pay heed to the deadline.
Interest due on tax– When you don’t file your income tax returns by the given deadline, you don’t just end up paying the penalty for late filing of income tax return but also have to pay interest at the rate of 1% on the tax amount you are liable to pay. And the longer you delay filing your Income tax returns, the more interest you end up paying. So, the smarter and more cost-efficient choice is to follow the deadline and submit your income-tax return well before that.
No interest on a refund– Very often, individuals who have paid excess taxes end up getting a refund from the government after they have filed their Income Tax Return. However, if you miss the deadline, you not only pay an income tax penalty, but your refund will also get delayed.
Cannot carry forward losses– Usually, when you incur business losses or capital losses, you have the provision of carrying those losses forward to the next financial year. However, if you fail to file the income tax returns on time, you lose the benefit of carrying forward your losses to be set off against income in future years.
Some Important Dates to Keep In Mind For 2023
The deadline for filing an Income Tax Return for FY 2022-23 is July 31, 2023. If you miss this deadline, you can submit a belated ITR within one year of the closing of the relevant assessment year or before that under the provision of Section 139(4). However, you’ll be liable to pay an income tax penalty of ₹ 5,000 for the late filing.
Collect TDS certificates from your employers and banks starting June 15. Your employer will have to give you Form 16, which is crucial for filing ITR.
The deadline for filing belated ITR for FY 2022-2023 is March 31, 2024.
These days, filing Income Tax Returns isn’t as complicated as it used to be. With e-filing possible, a lot of taxpayers choose to file their ITR by themselves. However, if you need assistance or are unable to understand how to go about filing your ITR, it is best to consult an expert. They will not only guide you on how to file ITR easily but also explain why this process is so important. Every taxpayer should aim to file their ITR before the deadline. It might be a necessary chore, but it is better than having to pay an income tax penalty or not getting the refund for which you’re eligible. So, file your income tax returns on time and save yourself from having to deal with legal hassles later on.