If the return has not been filed by July 31, then a late fee of up to Rs 5000 will be charged for filing the return by December 31 after that. After that from January 1 to March 31, the late fee will be Rs 10,000.
In any case, fill the return by 31st July.
If you have filed your return yet (income tax returnIf not done then there is a chance till 31st July. To avoid any kind of hassle, it is necessary that the income tax return should be filed before the deadline. A large number of filers reach at the last moment, in such a situation a problem with the website of the tax department is possible. If you do not do this important work by July 31, then it is not that you will not get a chance to file your return further. Filing the return on or after August 1 will attract late fees, as well as many other problems.
CMA Rajesh Kumar Jha Said that there are many disadvantages of filing late return. Talking about late fee under section 234F, the maximum penalty for filing return from August 1 to December 31 is Rs 5000. If the net taxable income is less than 5 lakhs then the late fee will be Rs 1000. If the net taxable income is more than 5 lakhs, then a fine of Rs 5000 will have to be paid. For filing returns after December 31, the amount of penalty will be Rs 10,000. It doesn’t matter which tax bracket you fall in.
Major Disadvantages of Filing Late Returns
- If a taxpayer files his return by July 31, it becomes easy for him to file a revised return. In such a situation, if you have not given any information about your income or if a notice comes from the Income Tax Department, then the revised return can be filed easily. If you file your return after July 31, you will not get a chance to file the revised return.
- If a taxpayer wants to file return after July 31, then there is a chance to file return with late fee till March 31, 2023. In addition to the late fee, interest will also have to be deposited on filing the return from August 1.
- TDS of 10% is deducted on interest income and dividend income. If you fall in the tax slab of 20 or 30 percent, then after July 31, you will have to deposit interest in addition to tax on the differential amount if you file your return. This rule is applicable under section 234A.
- If the return is filed on or after August 1, interest will have to be deposited on the tax outstanding amount. Its calculation will be done from July 31. After the 5th of the month, the interest for the entire month will have to be deposited. Interest of 1% is charged for every month.
- Any loss cannot be carried forward if the return is filed after July 31. In this, the loss arising from the sale of the house property has been kept aside. If there is a loss on selling the house property, then its benefit can be availed in any situation. If there is any loss due to business operation, then to carry forward it, it is necessary that the return has been filed by July 31. If there is a loss on the sale of any share or capital asset and want to take advantage of it, then it is necessary that the income tax has been paid by 31st July.