Wednesday, May 25, 2022

Missed income tax return filing deadline? Know the penalties and option you have

The final date of submitting earnings tax return for the monetary 12 months 2019-20 was 10 January 2021. Issuing an official order final night, the earnings tax division has rejected requests for additional extension of the due date for submitting tax returns saying that beneficiant further time has already been given. The deadline was prolonged a number of occasions within the wake of the covid-19 outbreak. Usually, 31 July of the evaluation 12 months (AY) is the final date for submitting the earnings tax return. This 12 months it was prolonged 3 occasions.

For those who haven’t filed your tax return even now, you continue to have the time to file a late or belated ITR. An earnings tax return filed after the due date is named belated return.

You’ll have to pay a late submitting penalty in case you’re submitting a belated return. The penalty shall be 10,000 because the final date was prolonged past 31 December. Usually, yearly the final date for submitting earnings tax return is 31 July of the related evaluation 12 months. In case you miss the ITR due date, a flat penalty of 5,000 is levied while you file belated returns until 31 December of the evaluation 12 months and 10,000 in case return is filed between 31 December and 31 March of the evaluation 12 months.

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For small taxpayers with earnings of as much as 5 lakh, a penalty of 1,000 is relevant in case of submitting belated ITR until 31 March.

The penalty together with the due tax must be paid earlier than you submit your belated ITR. Keep in mind that you would be able to’t escape paying penalty on belated return, regardless of whether or not any tax is due or not.

Points with belated return

Moreover paying a penalty, you’re additionally alleged to pay curiosity on due taxes every month till you file ITR. Additionally, you will not be allowed to hold ahead sure losses to subsequent years for set-off. “As an illustration, capital loss that’s loss on sale of capital asset and or loss beneath the top earnings and positive factors of enterprise or career can’t be carried ahead if the return is belated,” stated Prakash Hegde, a Bengaluru-based chartered accountant.

If any tax refund is due and the ITR is filed throughout the stipulated time, you’ll be able to earn curiosity on the refund claimed. A refund is claimed when extra tax is paid in your earnings throughout the 12 months as per Part 244A of the Revenue-tax Act, 1961. Nonetheless, in case of belated returns, you might lose the curiosity that will be due on the refund quantity.

Keep in mind that in the event you fail to file your ITR in any respect, the tax division can ship you a discover and it might probably even result in prosecution. There’s a provision of jail time period from three months to 2 years in the event you fail to file your ITR. Additionally, if the due tax is greater than 25 lakh, the jail time period could be as much as seven years.

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