The deadline to file the earnings tax returns (ITR) for the evaluation yr 2023-24 ends immediately. As per the newest replace, over 6 crore ITRs had been filed until 6:30 PM on July 30. The Earnings Tax division has urged taxpayers to finish the submitting course of on the earliest, emphasising there will likely be no extensions within the deadline this yr. In case a taxpayer fails to file the returns earlier than the deadline, it might invite penalties and different penalties.
Here is what occurs when a taxpayer fails to file the ITR earlier than the top of the deadline:
Taxpayers nonetheless have the choice to finish the tax submitting course of after the top of the preliminary deadline however with a late charge of Rs 5,000. All such ITRs should be filed earlier than December 31. In case, the taxpayer’s whole earnings does not exceed Rs 5,00,000, the penalty shall be restricted to Rs 1,000. For taxpayers whose whole earnings is lower than the essential exemption restrict, there shall be no late submitting charges.
Curiosity On Taxable Quantity
The Earnings Tax division costs curiosity on the fee of 1 per cent per thirty days on the taxable quantity in case of delay in submitting the return. The curiosity shall be relevant on the web taxable earnings after the deduction of TDS (tax deducted at supply), TCS (tax collected at supply), advance tax and different reliefs/ tax credit accessible below the regulation. In these instances, even a single-day delay is charged with curiosity for a month.
No Carry Ahead Of Losses
Not submitting the tax return by the due deadline will even result in a lack of carry ahead of losses to future years. Nevertheless, losses below the header “earnings from home property” or unabsorbed depreciation shall be allowed to be carried ahead.
High quality And Imprisonment
Aside from financial fines, failure to file tax returns may result in imprisonment. Late submitting of returns the place the tax payable or evaded is greater than Rs 25,000, might result in imprisonment of 6 months to 7 years and a advantageous.
Delay Or Loss Of Refund Claims
A taxpayer can declare their refund for extra tax deducted solely after submitting earnings tax returns. Taxpayers are eligible to obtain curiosity on such extra deductions, supplied they adhere to the prescribed schedule for submitting the return. Not submitting ITR on time might lead to a chronic wait or lack of the receipt of the tax refund.