The last date to file Income Tax Return (ITR) is near. The Income Tax Department is constantly asking people to file ITR before the deadline.
The last date for filing Income Tax Return (ITR) for the financial year 2022-23 is 31 July 2023. The government has made it clear that the deadline for filing income tax return will not be extended.
Therefore, if you come under the purview of Income Tax and have not yet filed your ITR, then get this work done as soon as possible. If you do not complete this work before the deadline, then later you will have to pay a fine for this work.
If you do not file your ITR by 31 July 2023, then you will get opportunities to complete this work. But you may have to face financial loss. Late filing option is available till December 31, 2023. But for this you have to pay fine.
How much can be fined?
Individuals having a total income of more than Rs 5 lakh can be fined up to Rs 5,000 for late filing of ITR. SAG Infotech Managing Director Amit Gupta said in a conversation with Business Today that late ITR filers face an immediate penalty of Rs 5000. This is the late fine, which depends on the period of delay.
Loss in deduction
Apart from this, those who do not file their ITR on time may have to face loss in tax deduction. This may eventually increase the tax liability. If you file ITR after December 31, 2023, you may have to pay a fine of up to Rs 10,000. If you fail to file ITR by 31 July 2023, an additional interest of one per cent per month will be charged till the return is not filed. Sundar Rajan TK, partner, DVS Advisors, said that one per cent interest would be levied till the date of filing the return.
Penalty for giving false information
While filing ITR, there can be a penalty of 50 percent for declaring less income or 200 percent for giving wrong income information. This penalty will be imposed on the total tax bill amount. Sudhakar Sethuraman, partner, Deloitte India, said non-filing of tax returns despite reminders may lead to prosecution proceedings on the basis of outstanding tax dues, which can lead to imprisonment of three months to seven years.
Tax refund delay
Loss (except house property loss) cannot be carried forward to the next year if a taxpayer fails to file income tax return by the deadline. Another tax refund of late ITR filing can also be delayed. Such delays can lead to unnecessary financial stress and inconvenience. Additionally, the details of late ITR filers can be scrutinized by the authorities and their chances of audit and inquiry in tax related matters increase.
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