When is the final day to file an income tax return?
To prevent having to pay a late filing charge, you must be sure to submit your income tax return (ITR) on time, that is, before the deadline. If taxes are paid after the ITR reporting deadline has passed, there may also be interest penalties under Section 234A of the Income-tax Act, 1961.
It’s crucial to remember that various taxpayers have varying deadlines for reporting ITRs. The Deadline to file an Individual Tax Return (ITR) under current income tax legislation is July 31 for individuals and Hindu Undivided Families (HUFs) (unless the date is extended by the government). For taxpayers whose accounts do not need to be audited, July 31 is the deadline for reporting ITRs.
ITR filing deadlines for different taxpayer types
For the purpose of completing an ITR, taxpayers must comprehend the concepts of a financial year and an assessment year. The taxpayer’s income is earned during the financial year (FY). The year after the financial year in which the income you generate is assessed is referred to as the assessment year (AY). The year that you file your ITR for the previous fiscal year is known as AY. For example, the AY for the FY 2021–22 is 2022–23. You will submit your ITR for either the FY 2021–22 or AY 2022–23 this year.
“The government has not yet made a formal announcement about extending the ITR reporting date. As a result, the ITR for FY 2021–22 (AY 2022-23) must be submitted no later than July 31, October 31, or November 30, 2022, as appropriate.”
Consequences of failing to file an ITR by the deadline
Individuals are permitted by current income tax legislation to submit ITRs even after the deadline has passed. A belated ITR is one that was submitted after the deadline. There are financial repercussions for Filing an ITR late.
If an individual’s ITR is submitted after July 31 there will be a late filing fee of Rs 5,000 assessed. The section 234F will be used to assess this late filing fee. If the Itr Filing deadline is missed, a fine of Rs 1,000 would be assessed for small taxpayers with taxable incomes under Rs 5 lakh.
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Keep in mind that December 31 is the deadline for submitting a late ITR (unless date is extended by the government). The government shortened the window for filing a belated or updated ITR by three months in Budget 2021, moving it from March 31 to December 31.
Therefore, if the ITR filing date of July 31, 2022 (for FY 2021-22) is missed, you have until December 31, 2022 to file a late ITR (for FY 2021-22).
Adding, Bangar “Section 234A allows for the imposition of interest penalties in addition to late filing penalties. If a person settles their self-assessment tax debt after July 31—i.e., after the ITR filing deadline—this interest penalty is assessed. If advance tax obligations are still unpaid at the time of ITR filing, interest penalties under sections 234B and 234C may also be applied.”
Who is excluded from paying the late ITR penalty?
In accordance with income tax legislation, some people are excused from paying a late filing fee, even if they submit a late ITR.
An individual will not be compelled to pay late filing fees if they file a delayed ITR if their gross total income does not exceed the basic exemption level (unless they are mandated to file an ITR even if their total income is below the basic exemption limit).
The fundamental exemption threshold differs depending on whether a person chooses the old tax system or the new income tax system.
There is a caveat, nevertheless, regarding the non-levy of late filing fees on delayed ITR in the aforementioned case. Even if a resident’s gross total income does not go above the tax exemption level, a late filing fee will be assessed if they file their ITR late and have income from foreign assets.
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