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.

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