There is no extension for filing Income Tax Return (ITR), and today, July 31, is the last day to file tax returns for the financial year 2021-22 or assessment year 2022-23.
While taxpayers have requested the government to extend the due date for filing ITR, the government has refused to do so.
Several users have complained of technical glitches on the e-filing website. However, the Center has made it clear that there is no plan to extend the due dates for filing ITR this year.
Hashtags “#Extend_Due_Date_immediatelyWas trending on Twitter with wide requests for immediate extension. But today is the last day.
It is okay if you have already submitted the return or can do so before the deadline. But what if you do not submit ITR by the 31st July deadline?
If you miss the July 31 deadline, you still have time till December 31, 2022 to file your return. However, there will be a late fee. There will be further economic loss.
There is a late penalty of Rs 1,000 for taxpayers with annual income up to Rs 5 lakh. If your annual income is more than Rs 5 lakh then the late fee is Rs 5,000.
However, if your total gross income is less than the basic exemption amount, you will not need to pay the penalty for late filing.
The income tax regime sets the basic exemption limit that you choose. For taxpayers below 60 years of age, the basic tax exemption limit under the old regime is Rs 2.5 lakh.
The basic exemption limit for those in the age group of 60 to 80 years is Rs 3 lakh. For people above 80, the exemption limit has been fixed at Rs 5 lakh.
Under the new concessional income tax regime, the basic tax exemption limit is Rs 2.5 lakh, irrespective of the age of the taxpayers.
Gross total income is the amount before any deduction allowed by section 80C to 80U of the Income Tax Act.
Apart from late fees, there are many consequences of missing deadlines. If you miss the deadline, you will have to pay interest on the late tax payment.
“Some tax may be payable while filing ITR, for example, interest and dividend. TDS is deducted at 10 per cent, but you are in 20 per cent or 30 per cent tax slab, so the difference amount of tax is TaxSpanner’s co- Founder and CEO Sudhir Kaushik told ANI that as per section 234A the payment is to be made with interest at the rate of 1 per cent per month.
If you file the return before the deadline, you may end up collecting unpaid taxes. However, if you miss the deadline, you will be forced to retroactively accrue unpaid taxes and interest by July 31.
If the balance is paid after the fifth day of any month, interest should be paid at the rate of 1 per cent per month for the entire month.
A taxpayer can reduce his liability by adjusting losses from commercial activities or by selling assets against other income. ITR must be submitted before the deadline to carry forward the loss.
“Loss (other than loss from house property) is not allowed to be carried forward, if you miss the due date. Loss must be declared on sale of property/shares/capital assets compelled to sell during Corona and should be filed before the due date,” Taxspanner co-founder and CEO Sudhir Kaushik told ANI.
As per the Income Tax Act, company losses (other than speculative losses) can be offset against any head of income, except salary income.
Any undue loss can be carried forward for eight financial years following the current financial year and can be offset against any permitted business revenue. For example, business loss in financial year 2020-21 can be offset by business income in financial year 2021-22 and onwards.
On the possibility of notices from the Income Tax Department, Mr. Kaushik said, “During the COVID pandemic, many individuals have invested in equities as we are seeing while filing ITR and AIS (Annual Information Statement). Hence due to mismatch of income. Tax notice/declared loss can also be expected for the same.”
If you miss the July 31 deadline, the delayed income tax return submission for the financial year 2021–2022 is December 31, 2022.
If you miss the deadline of December 31, 2022, refund and loss, you will have to file an appeal for condonation with the Commissioner of Income Tax of your ward to carry forward the refund and loss. “If the reason is genuine, you can get permission,” said Mr. Kaushik.
If you owe tax, there is a huge penalty. “If you find additional income in AIS or other documents that were not declared in the original return or were not filed at all, you will be liable to pay an additional tax of 50 per cent of this pending tax amount on filing the updated return within one year. And 100 per cent will have to be paid. Additional if filed after one but before two years,” he said.
If you submit your revised return after December 31, but before that date has passed, you must use a new form, ITR U, and explain why your income has changed.
The following are possible reasons:
- Return not filed earlier.
- Income that was not reported accurately.
- Incorrectly selected income tops.
- Reduction in forward losses.
- Reduction in unabsorbed depreciation.
- Reduction in tax credit u/s 115JB and 115JC.
- Wrong tax rate.
How to file income tax return
Here’s how to file your ITR through the e-filing portal:
*Visit the e-filing website https://www.incometax.gov.in/iec/foportal.
* If you have already registered then log in to your account or create a new registration by providing required personal and communication details.
* After logging into the portal, click on the “e-File” tab and then on “File Income Tax Return”.
*Select Assessment Year and click “Continue”.
* Submit your choice whether you want to file your return online or offline.
*Select “Individual” in the status applicable to your filing and then select the Income Tax Return (ITR) you wish to file. Most of the salaried individuals file their returns along with ITR-1 form.
* You will then be asked to specify the reason for filing ITR from the available options. Submit your choice and proceed to the next step to provide or verify your bank details.
* Declaration Tab – Once the taxpayer has filled all the details in the ITR-1 form, they have to fill the requisite information in the declarations, verifying that all the details given in the return are correct and complete.
* Verify the submitted information and click on “Proceed to Validate” to avoid any errors.
*Once the Income Tax Return is filed, taxpayers will receive an SMS/email notification confirming the ITR filing.
How to download Income Tax Return?
It is important to file ITR on time to avoid last-minute stress and penalty.
Once you submit your ITR, the IT department generates Income Tax Verification Forms so that taxpayers can verify the integrity of your e-filing. These applications are when you have filed your return without digital signature.
Income Tax Return Verification Form can be downloaded in easy steps:
1. Log in to Income Tax India website: Click here or visit https://portal.incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng.
2. View e-filed tax returns by clicking on ‘View Return/Form’ option