ITR filing date is just knocking on the door. Hopefully, all taxpayers are aware of the deadlines. If you are worried regarding the whole ITR filling process, you are at the very right platform, we are here to aware you regarding the same and to answer all your queries.
As per the latest official update of income tax return, December 31, 2021, is the last date to file an income tax return (ITR) for the financial year 2020-21. Merely one day left to file the ITR, taxpayers are advised to complete the task prior to the stipulated date. Already, the Centre has extended the due date of filing all Income Tax Return (ITR) for FY 2020-21 to December 31 due to the current pandemic situation.
However, if you fail to file the same till the last prescribed due date, you can still file ITR by submitting the fee of penalty which differs from person to person as per their annual income. It is pertinent to note that taxpayers whose taxable income is more than Rs 5 lakh, will be levied with a fine of Rs, 5000 and if their income is less than the taxable amount, the late fee will be Rs 1000. More so, taxpayers can fill the ITR via both online and offline modes.
Taxpayers would be happy to know, that this year the penalized amount for filling ITR on the due date has been reduced by the Centre from Rs. 10,000 to Rs. 5000.
The ambiguity of due date and last date amongst taxpayers
It is seen that there is massive confusion amongst taxpayers regarding the due date and the last date of filing ITR. People think that the due date and the last date are similar after which no ITR can be filled.
There are two dates concerned with the submitting of ITR i.e., due date and last date. If taxpayers fail to file their ITR latest by 31 December 2021, they can also file the same last by 31 March 2022. In both the scenarios’ taxpayers will be levied with some penalty amount which is mandatory to deposit while submitting ITR for the financial year 2020-21.
What, if you miss the due date?
If you fail to submit your current ITR by 31st December 2021, you can still submit it by 31st March 2022, but you lose the right to carry forward any losses for the current year and which cannot be set off against the current year’s income.
So, if you have losses, under the head capital gains or business income or loss beyond two lakhs sum under the house property head, during the current year and which you are otherwise entitled to carry forward for set-off in subsequent years, will not be able to do so if you miss the 31st December 2021 deadline.
Additionally, the taxpayers need to be aware that if they are entitled to get a refund for the excess taxes paid for the period of delay, they won’t be able to enjoy the benefit of interest anymore because the delay will be attributed to taxpayers if they miss the due date.
People who fail to file their ITR by the due date will have to mandatorily deposit a fine of Rs 5,000 if their taxable income is more than Rs 5,00,000. The penalty fee will be Rs 1,000 if the taxable income is not above Rs 5,00,000
Punishments other than levying fine
Taxpayers need to know that the present income tax laws allow a minimum sentence of three years of imprisonment and a maximum of seven years in case the amount of tax sought to be avoided exceeds Rs 10,000.
Hopefully, we have answered all your query related to ITR filling. In case if we have missed anything, you can drop down the same in the comment section below.
Thanks for reading and showing your interest!