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HomeIncome TaxMissed ITR: Penalty For Late Filing (ITR For AY 2022-23)

Missed ITR: Penalty For Late Filing (ITR For AY 2022-23)

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The Income Tax Department has established certain penalties for taxpayers who submit their forms after the deadline. Penalties vary based on how late the return is filed. The Income Tax Department has also established various interest rates for various taxpayer categories. Taxpayers should be aware of the dates for submitting their returns. For Assessment Year 2022–2023, income tax returns must be filed by July 31st, 2022.    

Taxpayers who file their returns after the due date have to pay a late filing fee. Taxpayers who do not submit their returns within the due date will also have to pay interest on the taxes due. The interest is payable from the due date till the date of actual payment of taxes. Taxpayers should file their returns on time to avoid paying penalties and interest.  

Did You Know that if you are late in filing your ITR for AY 2022-23, you may have to pay a penalty of up to ₹10,000?

What is ITR Filing?

An Income Tax Return is a document filed by individuals and businesses with the Income Tax Department annually. The ITR form calculates an individual’s or business’s tax liability. The ITR is also used to claim refunds if any. Individuals and businesses must file their ITRs by the due date, usually 31st July of the assessment year. If an individual or business misses the due date, they can file their ITRs by 31st March of the following year. However, they will have to pay penalties and interest on the outstanding tax amount. 

The ITR form must be accompanied by relevant financial documents, such as the Income tax return form, balance sheet, profit and loss account, and supporting documents. These documents are used to calculate tax liability. Once the ITR is filed, the Income Tax Department will process the return and calculate the tax liability. 

Also Read: Guide For Uploading TDS Returns On The Income Tax Portal

Who is Eligible to File an ITR?

ITR stands for Income Tax Return and is a document filed by an individual or business entity with income exceeding the minimum exemption limit set by the government. The ITR calculates the tax liability of an individual or business and helps the government track income earned by individuals and businesses. 

Individuals who are required to file ITR include: 

  • Those who are salaried and have an annual income of more than 2,50,000 
  • Those who are self-employed and have an annual income of more than 2,50,000 
  • Those who are partners in a partnership firm and have an annual income of more than 2,50,000 
  • Those who are directors in a company and have an annual income of more than 2,50,000 
  • Those who have income from sources other than salary and have an annual income of more than 2,50,000 

Business entities that are required to file ITR include: 

  • Partnership firms 
  • Limited liability partnerships 
  • Companies 
  • Trusts 
  • Association of persons 
  • Body of individuals 

Documents Required for Filing ITR  

There are a few documents that you will need to file your ITR. These include:  

1. Your PAN card 

2. Your bank statements 

3. Your salary slips 

4. Any investment documents 

5. Any documents relating to any deductions or exemptions that you are claiming 

These are just some of the main documents that you will need. It is always advisable to consult a professional tax advisor to ensure that you have all the necessary documents before filing your ITR.  

Also Read: TDS Refund: How To Claim TDS Refund

Steps for Filing ITR  

The steps for filing income tax returns (ITR) in India are as follows: 

1. Gather all the necessary documents, including your income statements, bank statements, and investment records. 

2. Choose the correct ITR form. There are seven ITR forms in total, and each one is for a different type of taxpayer. 

3. Fill out the ITR form with all the required information. 

4. Calculate your tax liability using the tax slab rates. 

5. Pay your taxes online or offline. 

6. E-file your ITR form or submit it to the concerned authorities. 

What was the Last Date to File ITR in 2022?

The last date to file ITR for FY2022 is July 31, 2023. For AY2022-23, the last date is May 31, 2023. An individual must file an Income Tax Return (ITR) if the total income of such person or assessee during the previous year exceeds the maximum amount that is not taxable. 

Can I File an ITR After the Due Date? 

It is advisable to file your Income Tax Return on or before the due date. However, if you missed the due date, you could file your return within 1 year from the end of the relevant assessment year. For instance, if you have not filed your return for the assessment year 2019-20 by 31st March 2020, you can file it by 31st March 2021. 

However, it is important to note that if you file your return after the due date, you will have to pay interest and a penalty for delayed filing. The interest rate for delayed filing is 1% per month or part of the month. In addition, a penalty of 5,000 will be levied if your total income does not exceed 5 lakhs. If your total income exceeds 5 lakhs, the penalty will be 10% of the tax due or 10,000, whichever is higher. Therefore, filing your return on or before the due date is advisable to avoid paying interest and penalties. 

Penalty For Late Filing Of ITR  

If individual taxpayers fail to file their Income Tax Return (ITR) on or before the due date, they may be liable to pay a late filing fee. The late filing fee is a penalty the government charges for ITR after the due date. The late filing fee for AY 2020-21 (FY 2019-20) is 5,000 for taxpayers whose total income is less than 5 lakh. For taxpayers whose total income is more than Rs 5 lakh, the late filing fee is 10,000. If you file your ITR after the deadline, you may also have to pay interest on the unpaid tax. The interest rate is 1% per month or part of the month. An income tax return is an important document and should be filed on time to avoid penalties.

Consequences of Late Filing of ITR  

Income tax returns are due on July 31 every year and one should consider themselves a defaulter if they file their return after this date. The late filing of income tax returns attracts a penalty of 5,000. This penalty is demanded under section 271F of the Income Tax Act. If you do not file your return, you may have to pay a penalty of up to 10,000. You may also be prosecuted and jailed for up to seven years. The late filing of ITR can also result in the disallowance of certain deductions and exemptions. So, filing your ITR on time is advisable to avoid any penalties. 

Also Read: Tax Deducted At Source For Business

Tips to Avoid Penalties for Late Filing of ITR 

It is important to file your Income Tax Return (ITR) on time to avoid penalties. Here are some tips to help you avoid penalties for late filing of ITR: 

1. File Your ITR As Soon As Possible 

The sooner you file your ITR, the lower the chances of getting penalized for late filing. 

2. File Your ITR Online

Filing your ITR online is the easiest and fastest way to file your return. 

3. Use e-filing Software

Using e-filing software can help you file your ITR accurately and on time. 

4. Keep Track of Deadlines 

Keep track of the deadlines for filing ITR. 

5. File Your ITR Even if You Do Not Have All the Required Documents

In case you do not have all the required documents, you can still file your ITR. However, you will need to provide the missing documents later. 

6. File a Revised Return if Required

If you have made any mistakes in your ITR, you can file a revised return. 

7. Seek Help from a Professional

If you are unsure how to file your ITR, you can seek help from a professional. 

Also Read: Time Limit To Deposit TDS And File TDS Return

Conclusion 

The penalty for late filing of ITR can be rather severe, ranging from a minimum of 5,000 to a maximum of 10,000. In some cases, the penalty can even be higher. The penalty for late filing of ITR can be quite severe, depending on the amount of tax owed. The interest rate is also quite high, so filing your return as soon as possible is critical. If you have a valid reason for filing late, you may be able to get a waiver of the penalty. However, filing on time is always advisable to avoid penalties.  
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