The deadline for filing the Income Tax Return (RTI) for the 2020-2021 fiscal year, i.e. the 2021-2022 tax year for the general category of all taxpayers, whose accounts do not are not subject to verification and that covers all employees is generally July 31. every year but has been extended to December 31, 2021 from now. What happens if an individual taxpayer whose accounts are not subject to verification exceeds the deadline and does not file their ITR by December 31, 2021 for the tax year 2021- 2022? Let’s discuss.
Is the due date also the last filing date of the ITR?
People generally have the impression that the due date is also the last date beyond which you cannot submit your ITR, which is incorrect. There are two relevant dates for filing the ITR: one is the due date and the other is the last date. If you don’t submit your ITR by the due date, you can still file it before the due date. The due date for filing the ITR for each year, for all taxpayers whose accounts are not audited, is July 31 of the year following the year for which the ITR is to be filed and the last date according to the amended law is December 31 of the following year. The due dates and the deadline for filing the ITRs for these taxpayers have been extended to December 31, 2021 and March 31, 2022 respectively for the 2020-2021 fiscal year.
What happens if you miss the deadline?
If you do not submit your current ITR by the extended due date, i.e. December 31, 2021, you can still do so before March 31, 2022, but you lose your right to carry forward any loss for the current year and which cannot be deducted from the current year. Income. So if you have losses, in respect of business income or capital gains or losses in excess of two lakh rupees under the title of the property of the house, during the current year and you are otherwise entitled to defer for compensation the following years, will not be able to do so if you miss the deadline of December 31, 2021.
In the event that the taxes paid by you or on your behalf are greater than your tax payable and are therefore entitled to a refund of the overpaid taxes, you lose your right to collect interest on such overpaid taxes. for the delay period that is assigned. yours. In the event that the taxes paid by you or on your behalf are less than your total tax payable, in addition to the interest for this shortfall, you will also have to pay interest for the period of delay in submitting your same ITR. if you have already paid the shortfall after March 31, 2021.
Late payment for filing your ITR after the due date
In addition to the above consequences, you will be required to pay a lump sum late fee of five thousand rupees at the time of filing your ITR if the ITR is submitted after the due date, in case your taxable income is more than five lakhs. The late charge, however, is limited to Rs. 1,000 / – in the event that the taxable income is less than Rs. Five lakhs.
So, if you are required to submit your RTI for any reason even though no tax is payable by you, you will have to pay a late fee of one thousand rupees. This can happen when your total gross income exceeds the basic exemption threshold applicable to you but does not exceed five lakhs and no tax is payable as a result of the refund available under section 87A. This can also happen when you need to file an RTI because you own assets outside of India or are a signatory to an account outside India or for having spent on electricity or traveling to the foreigner beyond the specified threshold.
What happens if you don’t submit your RTI even before the last date?
If you do not file your ITR by the extended due date, which is March 31, 2022, the income tax department may impose a minimum penalty equal to 50% of the tax that would have been avoided by you by not filing the ITR, in addition to the income tax and interest payable until the date you file your ITR in response to tax department notices.
Only a few people know that the government has the power to sue you and put you behind bars if you don’t file your ITR by the due date. Current income tax laws provide for a minimum sentence of three years in prison and a maximum of seven years. It’s not that the department can sue you for every failure to file the ITR. The Ministry of Revenue can only initiate proceedings in the event that the amount of tax to be avoided exceeds Rs. 10,000 / -.
I’m sure after reading this article you have decided to file your RTI by December 31, 2021.
The author is a tax and investment expert and can be contacted at [email protected] and @jainbalwant on Twitter
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