Missed filing ITR? December 31 is the last day to file belated income tax returns
As the saying goes, «Better late than never,» but when it comes to filing your income tax return (ITR), failing to meet the deadline can have serious consequences.
Taxpayers who have yet to file their income tax returns for the financial year 2022-2023 should take immediate action. The deadline of December 31, 2023, represents the final chance for individuals to fulfil this obligation. However, failure to meet this deadline comes with penalties and interest for late filing. Therefore, it is vital to understand the consequences and the significance of timely filing.
The initial deadline for submitting income tax returns for the fiscal year 2022-2023, also known as the assessment year 2023-2024, expired on July 31, 2023. Individuals who were unable to meet this deadline now have until December 31 to file their ITRs.
It is important to realise that the December 31 deadline applies to all taxpayers, including individuals, corporations, those undergoing audits, and those not undergoing audits.
In accordance with Section 234F of the Income Tax Act, individuals who fail to file their returns before the due date will be subject to a late filing fee. For those who missed the deadline, the penalty is ₹5,000. However, taxpayers whose total income remains below ₹5 lakh will only have to pay a reduced penalty of ₹1,000.
In addition, if a taxpayer files their return late, they will be charged interest under section 234A. This interest is calculated at a rate of 1 percent for every month, or part of a month, on the amount of unpaid tax.
Failure to file ITRs at all can have significant consequences. Taxpayers will not be able to carry forward losses from the current assessment year, and penalties may be imposed for non-compliance.
Read more on livemint.com
