Income tax return submitting deadline in the present day: What occurs in case you fail to file ITR?

ITR submitting final date: The due date for earnings tax return or ITR submitting for AY 2021-22 is ending on thirty first December 2021. Though, it’s advisable for all taxpayers to file their earnings tax return earlier than the ITR final date, in case, a taxpayers fails to file its ITR inside the due date, she or he would nonetheless have an opportunity to file their earnings tax return.

According to tax and funding specialists, due date for ITR submitting is thirty first December 2021 whereas final date for ITR submitting for FY 2021-22 is thirty first March 2022. However, in case of lacking the ITR due date of thirty first December 2021, a taxpayer must pay a flat late effective of ₹5000, in case its taxable earnings is greater than ₹5 lakh. Apart from this, the taxpayer must lose some advantages like carry ahead of losses, curiosity on the surplus tax paid by you.

Loss of advantages after ITR due date

Speaking on the lack of advantages {that a} taxpayer will lose after failing to file ITR inside the due date; Kartik Jhaveri, Manager — Wealth at Transcend Capital stated, “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 so as to add that failing to file ITR inside due date i.e. by thirty first December 2021, taxpayer will probably be entitled for ITR refund however the taxpayer will not be capable to get curiosity on the earnings tax paid in extra to the precise earnings tax legal responsibility.

Late effective after ITR due date

Speaking on the ITR guidelines on late effective; Mumbai-based tax and funding professional Balwant Jain stated, “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 stated that ₹1,000 late charge implies on them additionally who have no earnings tax legal responsibility and they’re submitting their ITR after the due date i.e. thirty first December 2021.

On what if a taxpayer fails to file its ITR by final date i.e. thirty first March 2022; Balwant Jain stated, “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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