The deadline for filing income tax returns (ITR) for the fiscal year 2023-24 is today. Over 6 crore ITRs have been filed as of 6:30 p.m. on July 30. The Income Tax Department has said unequivocally that there will be no deadline extensions this year, asking taxpayers to complete the filing procedure as soon as possible. Failure to file taxes on time may result in fines and other repercussions.
If a taxpayer misses the ITR deadline, the following will occur:
Taxpayers can still file their tax forms beyond the first deadline, but they will be charged a late fee of $5,000. These postponed ITRs must be submitted by December 31. If the taxpayer’s total income is less than $5,000,000.
The fine will be capped at $1,000. Late filing costs will not apply to taxpayers whose total income is less than the basic exemption level. In situations of late filing, the Income Tax agency assesses a monthly interest rate of 1% on the taxable amount. This interest is calculated on the net taxable income after deducting TDS, TCS, advance tax, and any other available tax reliefs and credits.
A single day’s delay might result in a whole month’s interest charge. Failure to file the tax return on time may also result in the loss of the ability to carry forward losses to future years. However, losses classified as “income from house property” or “unabsorbed depreciation” can still be carried forward.
In addition to financial penalties, failing to file tax returns might result in incarceration. Late filing with tax owed or avoided in excess of 25,000 may result in jail for 6 months to 7 years, as well as a fine. Only after submitting income tax returns may you claim a refund for excess tax deducted. If taxpayers follow the specified filing schedule, they may be entitled for interest on such excess deductions. Failure to file the ITR on time may result in delays or possibly the loss of the tax refund receipt.