Harshit Singh
- ITR filing deadline of July 31 is in four days.
- Belated returns will be charged a late fee.
- High fines and possible incarceration for non-compliance
It is critical to remember this significant date as the July 31 due date for filing income tax returns for the assessment year 2023–24 draws near.
The majority of tax professionals and chartered accountants appear to concur with the government’s suggestion that the deadline won’t be extended this year. Over 5 crore returns have been filed as of July 27 on the income tax e-filing platform, with scarcely any significant errors noted.
In order to avoid the last-minute rush, the agency has also advised the remaining taxpayers to finish the process before the deadline. What happens, though, if you miss the deadline of July 31? We shall examine the repercussions for taxpayers who miss the deadline for completing their income tax returns in this post.
Late payment for a late return submission
You have until December 31 to file a late return if you fail to submit it by July 31; nevertheless, a late charge will be assessed. If the return is submitted after the date stipulated in Section 139(4), a late fee of Rs 5,000 will be charged. However, if a person’s total income is less than Rs 5 lakh, the late fee is only allowed to be up to Rs 1,000.
penalty interest on the amount of the unpaid tax
Any unpaid tax balance will be subject to penal interest until it is paid in full, in addition to the late fee. The Income Tax Act states that a taxpayer is required to pay simple interest at a rate of 1% for each month or portion of a month, beginning on the day after the due date of July 31 and continuing until the actual day of submitting the return. Therefore, the longer taxpayers put off filing their tax returns, the more interest they pay.
loss of refunds or interest
The interest on refunds may also be lost if the deadline is missed. The only way to request a refund for extra taxes deducted is by filing your income tax return. Taxpayers can receive interest on refunds just like they do on past-due taxes, but only if they follow the guidelines for filing their returns on time.
Interest at a rate of 0.5 percent per month is paid from April 1 until the date of the refund if the return is submitted by the deadline. The interest on the refund, however, will be calculated from the day the return was filed to the date the refund was issued, excluding the period starting on April 1.
Losses cannot be carried forward
A late return submission may result in additional negative effects in addition to these financial ones. Except for losses on home property, losses may only be carried forward to subsequent years if the return is filed before July 31.
High fines and potential incarceration
Finally, it’s critical to be aware that failing to file a return on time can result in prosecution, jail time, and penalties that range from 50% to 200%. Not responding to a tax department notice, even for taxpayers who receive one, may result in punishment.
In order to avoid the numerous ramifications that could result from missing the ITR filing deadline of July 31, it is imperative that you give it top priority. Act right away and make sure your returns are sent in on time to preserve compliance and prevent needless fines.
