What To Do If You Have Missed Your Deadline

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New Delhi: The due date for filing the income tax return (ITR) for the financial year 2021-22 has passed.  If you have already filed the return or manage to file it before the due date, it’s well and good. However, if you miss the July 31 deadline due to any reason, you can still file the return by December 31, 2022. But, for this now you will have to pay a late fee, and it will also have some other financial consequences.Also Read – ITR Filing Deadline Today, Users Complain of Technical Glitches

How Much Late Fee You Have To Pay?

The late fee for the taxpayers whose annual income is up to Rs 5 lakh is Rs 1,000. If your annual income is more than Rs 5 lakh the late fine is Rs 5,000. However, if your gross total income does not exceed the basic exemption limit, you will not be liable to pay a penalty for the late filing. Also Read – More Than 65 Lakh ITRs Filed Till 11 PM Of Last Date; IT Dept Issues Helpline Numbers

The basic exemption limit depends on the income tax regime you choose. Under the old income tax regime, the basic tax exemption limit stands at Rs 2.5 lakh for taxpayers below 60 years of age. For people between 60 and 80 years of age, the basic exemption limit is fixed at Rs 3 lakh. For people above 80 years of age, the exemption limit stands at Rs 5 lakh. Also Read – ITR Filing Deadline Today: Income Tax Dept Shares Helpline Numbers To Address Your Last Minute Queries

Under the new concessional income tax regime, the basic tax exemption limit stands at Rs 2.5 lakh, irrespective of the age of the taxpayers.

Gross total income refers to the total income before taking into account the deductions under sections 80C to 80U of the Income Tax Act. Apart from the late fee charges missing deadlines have several other implications. If you miss the deadline you will be required to pay interest on the late payment of taxes.

If you file the return before the due date you can just deposit the outstanding tax. However, if you miss the deadline, you will be required to deposit the outstanding tax along with the interest, retrospectively from July 31. If the outstanding dues are paid after the 5th of any month, the interest of the full month will have to be paid at a rate of 1 per cent per month.

A taxpayer can reduce liability by offsetting the losses from business operations of the sale of property against other incomes. However, the losses can only be carried forward if the ITR is filed before the due date.

Losses not allowed to be carry forward after dur date

A taxpayer will not allowed to carry forward any losses for the current year if the ITR is not filed by due date. Therefore, any loss incurred under the business income or capital gains or loss beyond Rs 2 lakh under the house property head, cannot be carried forward to the subsequent year.

What happens if you miss last date?

In case you miss the 31st July deadline, the last date for filing the belated income tax return for the financial year 2021-22 is 31st December 2022. If you also miss the December 31 deadline, you would be required to file an appeal for condonation with the commissioner of income tax of your ward for refund and losses carried forward.

A new form ITR U has to be used for updated return and give reasons for updating your income. The reasons could be: return previously not filed; income not reported correctly; wrong heads of income chosen; reduction of carried forward loss; reduction of unabsorbed depreciation; reduction of tax credit u/s 115JB/115JC; wrong rate of tax and others.

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