The last date for filing income tax returns for the financial year 2020/21 (Assessment Year 2021/22) is March 31. Although it was earlier 31 July 2021, but due to Kovid, the government had made it 31 March 2022. Counting from today, there are total 3 days left including today. So if you are also one of those who have not filed returns, do so during this time period.
The Income Tax Return (ITR) given by the Income Tax Department to the taxpayers, if this work is not completed during that time, then such taxpayers will come under scrutiny under section 142(1) or 148. . Show cause notice can also be found under 142(1).
Under section 234F of the Income Tax Act, there is a fine of ₹5,000 for not filing income tax return. However, for those whose total income is less than ₹ 5 lakh, then this penalty amount will be ₹ 1,000 only.
This rule is applicable to all taxpayers and this penalty will also be applicable on those whose amount is not taxable. The Income Tax Department can also impose a penalty of 50 percent of the tax payable. Not only this, in some cases the rule of jail up to 3 years has also been kept. Apart from paying the penalty, the taxpayer may also have to pay interest. This interest will be 1 percent per month.
If you do not file your return then you may have to face TDS (Tax Deduction at Source) at a higher rate. Under a proposal in last year’s budget, non-filers will have to bear TDS at twice the normal rate or 5 percent. A ‘Non-Filer’ is a person who has not filed ITR in the first 2 years of the year in which the tax is deducted.
Not only this, if you do not file the return by the stipulated time then you will also not be able to get the refundable refund from TDS collection. The Income Tax Department tweeted last week that from April 1, 2021 to March 20, 2022, over ₹1,92,720 crore has been issued as refunds to 2.26 crore taxpayers.
So what to do now?
First of all, note down this date of filing ITR- 31 March 2022. This will be the last day of the 3-month grace period given by the Income Tax Department. Now you have to collect all your income from all sources and complete information about your investments and meet an expert who can file your return. But, if you want to fill it yourself, you can fill it online.