What happens if you fail to file your Income Tax Return on time?

The income tax return (ITR) filing deadline for the fiscal year 2021-22 or assessment year 2022-23 is July 31, 2022. Most of the taxpayers have already filed their ITR but for the ones who are unaware or are missing out to pay the tax on time, here is what you need to know..

The taxpayers who miss out the deadline of July 31 can still file their taxes by December 31. However the Income Tax Department of India charges fine for the late payers. The late fee is Rs 1,000 for taxpayers with an annual income of up to Rs 5 lakh. The late fee is Rs 5,000 if your annual income exceeds Rs 5 lakh. If you do not exceed the exemption limit, then no penalty is fined on you.

The basic exemption limit is determined by the income tax scheme you select. Under the previous income tax regime, the basic tax exemption limit for taxpayers under the age of 60 was Rs 2.5 lakh. The basic exemption limit for those between the ages of 60 and 80 is Rs 3 lakh. The exemption limit for those above the age of 80 is Rs 5 lakh.

The basic tax exemption level under the new concessional income tax regime is Rs 2.5 lakh, regardless of the taxpayer’s age.

Gross total income is the sum of all earnings before deductions allowed by sections 80C through 80U of the Income Tax Act.

Missing deadlines has a variety of other expenses in addition to the late fees. You will be required to pay interest on your tax bill if you miss the deadline.

You can simply deposit the outstanding tax if your return is submitted before the deadline. If you don’t meet the deadline, you’ll be required to submit the unpaid tax and interest going back to July 31. The interest for the entire month must be paid at a rate of 1% each month if the outstanding balance is not settled by the fifth of the month.

If you miss even the December 31, 2022 deadline for refunds and losses, you must file an appeal for condonation with the commissioner of income tax of your ward for refunds and losses carried forward.