Income tax return filing deadline today: What happens if you fail to file ITR?

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ITR filing last date: The due date for income tax return or ITR filing for AY 2021-22 is ending on 31st December 2021. Though, it is advisable for all taxpayers to file their income tax return before the ITR last date, in case, a taxpayers fails to file its ITR within the due date, he or she would still have a chance to file their income tax return.

According to tax and investment experts, due date for ITR filing is 31st December 2021 whereas last date for ITR filing for FY 2021-22 is 31st March 2022. However, in case of missing the ITR due date of 31st December 2021, a taxpayer will have to pay a flat late fine of 5000, in case its taxable income is more than 5 lakh. Apart from this, the taxpayer will have to lose some benefits like carry forward of losses, interest on the excess tax paid by you.

Loss of benefits after ITR due date

Speaking on the loss of benefits that a taxpayer will lose after failing to file ITR within the due date; Kartik Jhaveri, Manager — Wealth at Transcend Capital said, “There is difference between ITR due date and ITR last date. 31st December 2021 is ITR due date for AY 2021-22 whereas ITR last date for FY 2021-22 is 31st March 2021. However, it is advisable for a taxpayer to file ITR within due date i.e. by 31st December 2021 because after this due date, he or she can file ITR but will have to lose some benefits like carry forward of losses. After 31st December 2021, an income taxpayer won’t be able to claim carry forward of losses under the heads like business income or capital gains or loss beyond two lakhs rupees under the house property head.”

Kartik Jhavri of Transcend Capital went on to add that failing to file ITR within due date i.e. by 31st December 2021, taxpayer will be entitled for ITR refund but the taxpayer won’t be able to get interest on the income tax paid in excess to the actual income tax liability.

Late fine after ITR due date

Speaking on the ITR rules on late fine; Mumbai-based tax and investment expert Balwant Jain said, “A taxpayer will have to mandatorily pay a flat late fee of 5000 at the time of ITR filing, if the ITR is submitted by 31st December 2021, in case your taxable income is more than five lakhs. The late fee, however, is restricted to 1,000 in case the taxable income is below 5 lakhs.” Balwant Jain said that 1,000 late fee implies on them also who don’t have any income tax liability and they are filing their ITR after the due date i.e. 31st December 2021.

On what if a taxpayer fails to file its ITR by last date i.e. 31st March 2022; Balwant Jain said, “In case a taxpayer fails to file its ITR by the last date i.e. 31st March 2022 the income tax department can levy a minimum penalty equal up to 50 per cent of the tax in addition to the income tax and interest liability till the date a taxpayer files its ITR in response to the notices from the income tax department.”

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