There are only 3 days left for the presentation of the ITR, what happens if the deadline is not respected

There are only 3 days left for the presentation of the ITR, what happens if the deadline is not respected

The deadline for filing the ITR for the financial year 2020-21 (the evaluation year 2021-22) has been extended twice

Themes
tax return | Income tax | Electronic income tax return

SOUL Last updated December 29, 2021 21:02 IST

https://mybs.in/2ZjsAL0


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Income tax
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The filing of the tax return (ITR) is one of the most important financial tasks of every year. The deadline for submitting ITRs for the 2020-21 financial year is December 31st.

The deadline for filing the ITR for the financial year 2020-21 (the valuation year 2021-22) has been extended twice: first from the usual deadline of July 31, 2021, to September 30, 2021 and then to December 31, 2021.document.write(““);googletag.cmd.push(function(){googletag.defineOutOfPageSlot(‘/6516239/outofpage_1x1_desktop’,’div-gpt-ad-1490771277198-0′).addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();});

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The deadline of December 31 is for people whose accounts do not need to be verified. For companies whose accounts need to be audited, the deadline for submitting the ITR has been extended to February 15, 2022, from the previous extension of November 30 and the original deadline of October 31, 2021.

Until December 28, 4.86 crore ITRs were deposited. The total number of ITRs filed for the 2020-21 assessment year (FY 2019-20) was 7.38 crore. It stood at 6.78 crore for the 2018-19 fiscal year and 6.74 crore for the 2017-18 financial year. There has been a substantial increase in the number of ITRs filed over the years.

Clearly, a significant number of people have not yet filed their tax returns. The number of ITRs filed up to December 28 is 2.52 crore lower than the total number recorded in the previous year. If we follow the average daily ITR filing trend, around 2 crore of people are likely to miss the December 31 deadline.

What happens if the deadline of 31 December is not met? You can still file your statement, but it will have financial implications.

Before delving into the financial implications, it is important to note the difference between “due date” and “last date” for submitting the ITR. The expiry date is the date by which the ITR can be submitted without paying any penalty. The ITR can be filed up to the last date by paying the applicable late fees. The deadline for filing the ITR for the 2021-22 valuation year has been extended to March 31, 2022, compared to the original deadline of December 31, 2021.

The year of evaluation (YY) refers to the year following the financial year (FY) in which the income you receive is evaluated. For example, for fiscal year 2020-21, the valuation year is 20221-22.

If you are unable to submit the ITR by the deadline of December 31st, you can still submit the “Late Return” declaration. Late filing may be filed under section 139 (4) of the Income Tax Act, 1961. However, the valuer would be required to pay late filing taxes and criminal interest, and also waive the benefits of tax interest. overpaid.

The penalty for late filing of the ITR after the due date is up to Rs. 5,000. Small taxpayers whose total taxable income during the financial year under review does not exceed Rs. 5 lakh will have to pay a maximum fine of Rs. 1,000 if the ITR is submitted after the due date but before the last date of the March 31, 2022.

Please note that if your income is below the tax limit you will not be required to pay any penalties. However, there is a problem! If a resident individual has foreign asset income, late filing taxes will be collected even if the gross income does not exceed the tax exemption limit. The basic tax exemption limit is Rs.2.5 lakh regardless of the age of the taxpayer.

Until the 2016-17 financial year, there was no penalty for submitting late tax returns. In 2017, provisions were added in the Income Tax Act for the imposition of penalties in case of late filing of the return. The sanction was introduced from the 2017-18 financial year. The maximum penalty was set at 10,000 rupees. Starting from the 2020-21 fiscal year, the fine has been halved. Now the maximum penalty is 5,000 rupees.

However, it’s not just the late fee that should bother you. There are other financial implications as well of not filing the return by the due date.

If you fail to submit the ITR by the due date, you will be required to pay penalty interest on the unpaid tax liability, if any.

Furthermore, you will not be able to carry over your losses even if you have paid all your taxes on time. If there is a loss from business and professions, including speculation activities, short or long term capital losses or any other loss other than the loss of real estate up to Rs.2 lakh, they cannot be carried forward.

If you are entitled to carry over your losses, you must submit the declaration before the due date. Taxpayers can carry forward short-term and long-term losses up to a maximum of eight years of assessment immediately following the year of assessment in which the loss was first calculated.

Also, you can’t offset losses against current year’s income if you don’t file the return before the due date.

Another important factor to note is that if you do not file the return by the due date you will not receive interest on the refund for the excess fees paid for the overdue period.

It is speculated that the government may further extend the expiration date considering the COVID-19 situation. However, there are also chances that the date cannot be extended. So, if you haven’t filed your ITR yet, do it now.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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