Individual taxpayers (other than those situation to tax audit), who didn’t file their Income Tax Return (ITR) before the due date of July 31, 2022 have the option to record their go back of earnings by using December 31, 2022 by way of paying a nice of as much as Rs five,000 as overdue fee for submitting the ITR late, which could get doubled or up to Rs 10,000, after the stop of the 12 months 2022.
“The due date for man or woman taxpayers (aside from the ones difficulty to tax audit) for the purpose of furnishing tax returns for Financial Year (FY) 2021-22 (AY 2022-23) changed into thirty first July 2022 as in line with phase 139(1) of the Income Tax Act (IT Act). Where a taxpayer who is required to grant the go back of profits, fails to do inside such prescribed time restriction, he/she will be prone to late expenses Rs five,000 under section 234F. However, if the entire earnings of the person does now not exceed Rs five lakh, overdue expenses could be restrained to Rs 1,000,” said Dr. Suresh Surana, Founder, RSM India.
Interest of Tax Payable
Apart from the past due charge, a taxpayer will also need to pay hobby on tax payable, if any, consistent with month.“In accordance with Section 234A of the IT Act, interest on the rate of one in keeping with cent consistent with month or a part of month might be relevant throughout delay in return filing at the tax amount excellent,” stated Dr. Surana
Last Date of Filing Return
So, if you are nonetheless to file your ITR and may’t do it earlier than December 31, 2022, you have to pay a double quality to report it till March 31, 2023 – the last date of submitting return for the Assessment Year (AY) 2022-23 (Financial Year 2021-22).
“Any taxpayer who fails to provide such return by means of 31st July 2022 can also furnish a belated tax go back u.S.139(four) of the IT Act on or before 3 months prior to the quilt of the applicable assessment year (i.e., On or earlier than December 31, 2022, for returns referring to FY 2021-22) or earlier than the of completion of evaluation, whichever is in advance,” said Dr. Surana.
Consequences of Non-Filing of ITR
However, in case you fail to report your ITR before the quilt of the Assessment Year – that is March 31, 2023 – you’ll be in more trouble.
“The sales government have a proper to carry out Best Judgement assessment united states148 of the IT Act in case any person fails to supply his go back who’s in any other case required to grant return u.S.A.139 of the IT Act. Further, such defaulting taxpayers would also be subjected to a penalty america270A for upto 50 consistent with cent of such underneath-pronounced income. Further, taxpayers who willfully fail to furnish their tax returns united states of america139(1), 142(2)(i), 148, and many others. Within due time may be subjected to prosecution usa276CC of the IT Act. Such prosecution may be for a length of 6 months to 7 years in case the amount of tax evasion exceeds Rs.25 lakh and from three months to 2 years in different instances,” said Dr. Surana.