What Happens If I Miss Deadline to File Income Tax Returns?

July 31, Monday, marks the final day for taxpayers to file their Income Tax Returns (ITR) for the financial year 2022-23. The deadline has arrived, and taxpayers are urged to act promptly to avoid potential penalties, and legal consequences in serious cases. However, there is no  information yet from the government if there will be an extension to the deadline.

As the clock ticks closer to midnight, tax authorities are witnessing a surge in last-minute tax filings. On Sunday, the Income Tax Department reported an overwhelming response with more than 6 crore returns. It reported nearly 27 lakh on the day.

“Kind Attention…A new milestone! More than 6 crore ITRs have been filed so far (30th July) of which about 26.76 lakh have been filed today till 6:30 pm! We have witnessed more than 1.30 crore successful logins on the e-filing portal today,” tweeted the Income Tax Department.

The Income Tax Department has been closely monitoring the situation and informed that its helpdesk is  functioning 24x7 to provide additional support to handle the anticipated influx of taxpayers seeking assistance in the eleventh hour.

The helpdesk will be assisting taxpayers in ITR filing, tax payments and related services. The IT department has informed that support is being provided through calls, live chats, WebEx sessions, and social media.

What happens if I miss the deadline?

Taxpayers who miss the deadline for filing their ITR face several potential repercussions. The primary consequence is the imposition of a late filing fee. According to tax experts, individuals who file their returns after the due date may be liable to pay a penalty, which can vary depending on the delay period and total tax owed.

What if I file a belated ITR?

The Income Tax Department has urged taxpayers to file ITRs before the deadline expires. However, in  case one is not successful in filing their tax returns, they can opt to file a belated ITR, but it will attract a maximum penalty of Rs 5000 if the date of closing is between August 1 and December 31. For taxpayers with total income of less than Rs 5 lakh in a fiscal year, the maximum penalty is Rs 1000.

The penalty exponentially rises if the ITR is submitted after December  31. The fine after December 31 is Rs 10000.

Does delaying in filing ITR free me from tax obligations?

It is essential for taxpayers to understand that missing the deadline does not exempt them from their tax obligations. Failing to file returns altogether may attract further legal consequences and, in extreme situations, even prosecution.

For those who still haven't filed their returns, there is still time to act. By utilising the e-filing portals provided by the Income Tax Department, taxpayers can complete the process swiftly and accurately.

The Income Tax Department urges all eligible taxpayers to fulfil their tax obligations responsibly and adhere to the deadline.