If you haven’t already, file your ITR by July 31. There are various benefits to submitting your ITR on time. Belated returns must be filed if you fail to submit your ITR by the deadline for the financial year 2022–2023 (due date). The department has given you until December 31, 2023, to complete this. The following losses may occur if you are also unable to file an ITR by July 31, 2023, for any reason.
Penalty
Individuals with incomes over Rs 5 lakh must pay a penalty of Rs 5,000 for filing ITRs late. On income up to Rs 5 lakh, there is a fee of Rs 1000. Additionally, failing to submit an ITR on time may result in the loss of specific tax breaks and exemptions. In the long run, this can make you owe more money in taxes. A charge of Rs 10,000 will be imposed if you file your ITR after December 31, 2023.
Interest for Filing ITR Late
If your income is taxable, you will be assessed additional interest at a rate of 1% per month until the ITR is filed if the return is not done by July 31. In accordance with this, 1% interest is charged up until the date the return is filed. Only in cases where tax is owed but must be paid for the updated return up until the end of March 2024 will the assessee have the opportunity to file an updated return after December 31.
Underreporting income can result in fines of up to 50%
and misrepresenting income can result in fines of up to 200%. According to experts, the authorities may have to begin the criminal prosecution procedure if the tax return is not filed despite the reminder. Three months to seven years in prison are possible penalties under this.
If you are beyond March 31 then you cannot choose the new tax regime
thus there is no benefit to it. Salaried employees cannot choose the new tax system either. They will have to pay more tax and interest for the late ITR filing if they choose this option with the employer. Let us inform you that the Finance Minister maintained income up to Rs. 7 lakh tax-free under the new tax regime in the budget announced on February 1.
Reimbursement is delayed
The possibility of a delayed tax refund is yet another drawback of filing ITRs beyond the deadline. Such delays may cause unneeded tension and difficulty with money. Additionally, the authorities may become involved if an ITR is filed late. The likelihood of audits and inquiries into their tax affairs rises as a result.
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