Income Tax Return Filing: Here's What You Can To Expect Next If You Don't File ITR By July 31

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New Delhi: The government gives taxpayers a four-month opportunity each Assessment Year (AY) to properly aggregate their income information for the applicable fiscal year and file their ITR. April 1 marks the start of the four-month period, which ends on July 31 (unless it is extended).

You will be subject to penalties and may get a notification from the Income Tax Department if you fail to submit your ITR by the deadline.

You can claim a variety of deductions and exemptions on your ITR, which can lower your tax obligation. You might be eligible to write off things like house loan interest, insurance, and medical costs.

Penalty For Missing ITR Deadline

The option to submit a late ITR is available to taxpayers who miss the deadline. The deadline to submit a late ITR for FY 2022-23 (AY 2023-24) is December 31. A late filing charge will be assessed if the ITR is submitted after the deadline (which is July 31) but on or before December 31.

If you file your ITR after the due date of July 31 but before December 31, 2023, you will be subject to a maximum penalty of Rs 5,000 under Section 234F of the Income Tax Act.

Up to Rs. 5 lakh in total annual income will result in a Rs. 1,000 fine. The fine would be Rs 10,000 if the ITR is filed after December 31, 2023.

Penal Interest

If you file a late return and have any unpaid taxes, you will be assessed punitive interest on the sum, depending on your situation. The taxpayer won't be obligated to pay this interest if there is no tax owed—just because the ITR was submitted late.

Prosecution

The income tax officer may begin legal action if a person willfully fails to file a return after being notified. For failing to file an ITR, a prison sentence of three months to two years may be imposed.

If the amount of tax evasion surpasses Rs. 25 lakh, a prison sentence of 6 months to 7 years may be imposed.