Did you miss the ITR 2021-22 deadline? Here’s what you should do next.
The income tax return (ITR) deadline for fiscal year 2021-22 (FY22) was July 31, 2022. Despite claims by netizens that they were unable to file their ITRs due to technical difficulties, the government of India did not extend the deadline.
Over 50 million ITRs are likely to be submitted in FY22. However, the exact figure has yet to be released. On the final day, July 31, nearly 6.5 million documents were filed by 11 p.m.
But what if you were unable to file the ITR 2021-22 by the deadline? What can you do today to avoid being sued by the Central Board of Direct Taxes (CBDT)?
Belated ITR
Taxpayers who missed their original Deadline can file a belated ITR. It must be filed by December 31st of the same year. As a result, the deadline for filing a late ITR this year is December 31, 2022. However, the administration may announce an extension later.
A late ITR, on the other hand, carries a penalty. If the Itr Deadline is missed, the taxpayer must pay a late fee of Rs 10,000 under section 243(F) of the Income Tax Act, 1961. Nirmala Sitharaman, the finance minister, lowered this amount to Rs 5,000 in her Budget 2021 speech.
This charge is only applicable if your taxable income exceeds Rs 5 lakh per year. The late cost is Rs 1,000 for taxpayers with an annual income of less than Rs 5 lakh.
Furthermore, because the exemption level under the new tax regime is Rs 2.5 lakh per year, anyone earning less than that is not required to pay any late fees.
What are the consequences of failing to submit your ITR on time?
There are also more drawbacks to filing the ITR after the deadline.
Interest on overdue taxes
The taxpayer is obligated to pay interest on overdue taxes. It is derived from the last day the ITR was filed. The interest rate is now 1%.
Read More: GSTR-3B Advisory on Impending Changes
Losses cannot be carried forward
A person submitting a late ITR is also ineligible to carry forward any losses accrued from capital expenditures, etc. The loss from the sale of property, on the other hand, may still be carried forward.
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