Report Wire

Tag: Income tax penalty rules

  • ITR submitting deadline: Penalties and different outcomes when you miss due date

    Income tax return (ITR) submitting for FY 2022-23: The due date for earnings tax return (ITR) submitting is thirty first July 2023, which implies taxpayers have only a week in hand to file their ITR. In order to keep away from late charges or penalties, the earnings tax division has been urging taxpayers to file their returns as quickly as potential and never wait till the final minute.   

    Will Govt prolong July 31 ITR submitting deadline?

    “As the deadline for submitting ITR for FY 2022-23 (AY 2023-24) nears on thirty first July 2023, over 4 crore taxpayers have already filed their returns. Despite some taxpayers hoping for an extension, it’s unlikely that the federal government will grant any additional delays past the set date,” mentioned Abhishek Soni CEO and Co-founder Tax2win.

    Here’s what occurs when you miss July 31 deadline

    Filing ITR on time is very advisable to keep away from last-minute errors. “The penalties of lacking the deadline may end in penalties. Taxpayers who fail to file their ITR by the deadline might incur a penalty of ₹5,000 underneath Section 234F. However, for people with an earnings of lower than ₹5 lakh, the penalty might be a diminished quantity of ₹1,000,” said Abhishek Soni

    Tax and investment expert Balwant Jain said, “If an incomes particular person misses submitting ITR inside the given due date, then she or he would have the option to take action by paying the late payment. The late payment could be ₹5,000 if the annual taxable earnings is ₹5 lakh or extra whereas the late payment could be ₹1,000 if the taxable earnings is beneath ₹5 lakh.” 

    Missed to file ITR? You may land in jail too

    Mumbai-based tax expert Balwant Jain added that the Indian government has the power to initiate prosecution against the salaried individuals who have missed filing ITR by 31st December 2023 

    “Current earnings tax guidelines prescribe a minimal sentence of 6 months of imprisonment and a most sentence of seven years of imprisonment. It shouldn’t be that the division can launch prosecution towards you in each occasion of failure to file the ITR. The earnings division can launch prosecution solely in case the quantity of tax sought to be prevented exceeds ₹10,000,” Balwant Jain mentioned.

    Over 4 crore ITRs filed for FY23 to date

    More than 4 crore earnings tax returns (ITRs) for the 2022-23 monetary 12 months have been filed to date and about 7 per cent of those are new or first-time filers, CBDT chairperson Nitin Gupta mentioned on Monday. He mentioned that greater than half of those ITRs have been processed resulting in 80 lakh refunds until now. The chairperson was talking at an occasion held right here to mark the 164th Income Tax Day on 24 July

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 25 Jul 2023, 12:30 PM IST

  • ITR submitting: Late payment to jail time period – If you miss due date

    Income tax return (ITR) submitting for AY 2022-23: The due date for revenue tax return (ITR) submitting is thirty first July 2022, which implies taxpayers have simply few hours in hand to file their ITR. The revenue tax division has been requesting incomes people to gasoline their I-T return throughout the given due date and keep away from late payment or penalty. However, for info to the taxpayers, on lacking the ITR submitting due date, incomes people must pay as much as ₹5,000 late payment whereas they could be prosecuted for six months to 7 yr jail time period as properly. Apart from this, they will not have the ability to carry ahead or set off losses in opposition to the revenue or revenue of the yr.

    Monetary penalty on lacking the ITR submitting due date

    Speaking on the financial penalty being levied on the taxpayers submitting their ITR after the due date, Mumbai-based tax and funding knowledgeable Balwant Jain mentioned, “If an earning individual misses to file ITR within the given due date, then he or she would be able to file its ITR on paying the late fee. The late fee would be ₹5,000 if the annual taxable income is ₹5 lakh or more whereas late fee would be ₹1,000 if the taxable income is below ₹5 lakh.” He mentioned that above-mentioned late payment will likely be relevant when the taxpayer information ITR after due date of thirty first July 2022 however earlier than the final date of thirty first December 2022.

    “If an earning individual misses to file ITR after the last date of 31st December 2022, the income tax department may levy penalty of 50 per cent to 200 per cent on taxpayer’s actual income tax outgo, in addition to the tax and interest liability till the date a taxpayer files its ITR in response to the income tax notice from the department,” Balwant Jain mentioned.

    You could land in jail too

    The Mumbai-based tax knowledgeable went on so as to add that the Indian authorities has the ability to provoke prosecution in opposition to the incomes particular person who has missed to file ITR by the given final date i.e. thirty first December 2022 for AY2022-23.

    “Current income tax rules prescribe a minimum sentence of 6 months of imprisonment and a maximum sentence of 7 years of imprisonment. It is not that the department can launch prosecution against you in each and every instance of failure to file the ITR. The income department can launch prosecution only in case the amount of tax sought to be avoided exceeds ₹10,000,” Balwant Jain mentioned.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Subscribe to Mint Newsletters

    * Enter a sound e-mail

    * Thank you for subscribing to our publication.

    First article