Missed Filing Income Tax Returns: You Must Read This!
By : DC Web Desk
Update: 2024-07-18 12:24 GMT
Hyderabad: The deadline to file an Income Tax Return (ITR) is July 31, 2024, and failing will result in penalties and interest charges that can range from a fixed price to a percentage of the tax payable which depends on how late the filing is.
A person can shield himself from these needless financial hardships by filing the ITR on time. Also, the timely submission of ITR guarantees that, if a person is eligible for a tax refund they will get their return sooner.
Postponing the filing of ITR can simply cause a delay in the processing of refunds.
Additionally, It is unlikely that the deadline of July 31 will be extended because the finance minister has not yet made a formal notification. The current deadline for submitting an ITR for the 2023–2024 fiscal year is July 31, 2024.
If a person misses the deadline, they can still file their tax return, but there will be a late fee, which is called filing a belated return. The deadline for filing a delayed return for the financial year 2023–24 (assessment year 2024–25) is December 31, 2024.
If an income return is not filed by the deadline specified in section 139(1), there will be a charge of Rs 5,000 for noncompliance. If an assessee's total income is less than Rs. 5 lakh, then the fee is Rs. 1,000.
In addition to any late filing penalties, a person will also be responsible for interest on any unpaid taxes. This interest is accumulated from the first due date until the entire amount is paid.
There are other consequences associated with filing a late return, in addition to penalties and interest, such as If a person misses the deadline of July 31st, he will not be able to carry over some losses to subsequent years.
In the event of a late filing, only losses of real estate can be carried forward. According to Section 276CC, if the amount of tax avoided or owed exceeds Rs 25,000, the penalty for filing income tax returns beyond the deadline is six months to seven years in prison and a fine.
Refunds for excess taxes deducted can only be obtained by filing income tax returns. Furthermore, taxpayers who file their returns within the specified schedule may be eligible to receive interest on their refunds, similar to the interest levied on past-due taxes.
When an ITR is filed late or not at all, the Income Tax Department has the authority to send letters or start a scrutiny process. By filing your ITR on time, a person can reduce the likelihood of receiving such queries, and save themselves from needless worry and possible legal repercussions.