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

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Updated: 25 Jul 2023, 12:30 PM IST