What in case you fail to file your ITR by 31 December, 2021
The due date for submitting of the Income Tax Return (ITR) for the monetary yr 2020-2021 i.e. evaluation yr 2021-2022 for normal class of all taxpayers, whose account usually are not required to be audited and which covers all salaried is normally thirty first July yearly however has been prolonged until thirty first December 2021 as of now. What occurs if a person taxpayer whose accounts usually are not required to be audited misses the deadline and fails to file his ITR by thirty first December, 2021 for the evaluation yr 2021-2022? Let us talk about.
Is due date additionally the final date of submitting of the ITR?
People are typically below the impression that the due date can be the final date past which you can’t submit your ITR, which isn’t appropriate. There are two dates related for ITR submitting: one is the due date and the opposite is final date. In case you fail to submit your ITR by the due date, you’ll be able to nonetheless file it by the final date. The due date for submitting ITR for annually, for all of the taxpayer whose accounts usually are not required to be audited, is thirty first July of the yr following the yr for which the ITR is to be filed and the final date as per the amended legislation is thirty first December of the next yr. The due dates and final date for submitting of the ITR for such tax payers have been prolonged to thirty first December, 2021 and thirty first March 2022 respectively for the monetary yr 2020-21.
What occurs in case you miss the deadline?
In case you fail to submit your present ITR by prolonged due date i.e. thirty first December 2021, you’ll be able to nonetheless accomplish that by thirty first March 2022 however you lose your proper to hold ahead any losses for the present yr and which can’t be set off towards present yr’s revenue. So in case you’ve losses, below the top enterprise revenue or capital positive factors or loss past two lakhs rupees below the home property head, throughout the present yr and which you’re in any other case entitled to hold ahead for set off in subsequent years, will be unable to take action in case you miss the thirty first December 2021 deadline.
In case the taxes paid by you or in your behalf are greater than your tax legal responsibility and due to this fact are entitled to get refund for the surplus taxes paid, you lose your proper to get curiosity on such extra tax paid for the interval of delay which is attributed to you. In case the taxes paid by you or in your behalf are decrease than your combination tax legal responsibility, along with the curiosity for such shortfall, additionally, you will should pay curiosity for the interval of delay in submitting your ITR even if in case you have already paid the shortfall after thirty first March 2021.
Payment of late for submitting of your ITR after the due date
In addition to the above penalties, you’ll have to mandatorily pay a flat late payment of 5 thousand rupees on the time of submitting of your ITR if the ITR is submitted after the due date, in case your taxable revenue is greater than 5 lakhs. The late payment, nevertheless, is restricted to Rs. 1,000/- in case the taxable revenue is under Rs. 5 lakhs.
So in case you’re required to submit your ITR for any motive even when no tax is payable by you, you’ll have to pay a late payment of 1 thousand rupees. This can occur when your gross complete revenue exceeds threshold of fundamental exemption restrict relevant to you however doesn’t exceed 5 lakhs and no tax is payable as a consequence of rebate obtainable below Section 87A. This may occur when it’s important to file an ITR as a consequence of proudly owning of any property outdoors India or you being a signatory to any account outdoors India or for having spent on electrical energy or overseas journey past specified threshold restrict.
What occurs in case you fail to submit your ITR even by the final date?
In case you fail to file your ITR by the prolonged due date i.e. thirty first March 2022 the revenue tax division can levy a minimal penalty equal upto 50% of the tax which might have been prevented by you by not submitting the ITR , along with the revenue tax and curiosity legal responsibility until the date you file your ITR in response to the notices from tax division.
Only a number of folks know that the federal government has powers to launch prosecution towards you and put you behind bars if you don’t file your ITR by the due date. The current revenue tax legal guidelines prescribe a minimal sentence of three years of imprisonment and a most of seven years. It just isn’t that the division can launch prosecution towards you in every occasion of failure to file the ITR. The revenue division can launch prosecution solely in case the quantity of tax sought to be prevented exceeds Rs. 10,000/-.
I’m certain after studying this text you’ve made up your thoughts to file your ITR earlier than thirty first December 2021.
The author is a tax and funding professional and will be reached at [email protected] and @jainbalwant on Twitter
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