ITR filing 2023: If you have failed to file your income tax return (ITR) for the Financial year 2022-23 by July 31, you can still file a belated return till 31 December, but that comes with a cost. The last date to file ITR passed on July 31, and as expected the government did not extend the deadline for the same. While data showed that the total number of ITR filers has scaled a peak with over 6.50 crore ITR fillings till 6 pm Monday. Of the total, about 36.91 lakh ITRs have been filed today till 6 pm, Income Tax Department said in a tweet on July 31.
From jail to penalty: Repercussions of missing ITR filing deadline
ITR filing after the due date will attract penalties depending upon the income tax slab in which the individual taxpayers fall. They can even land in jail for such income tax return violations and the jail sentence can be to the tune of a minimum of three years and a maximum of seven years.
“The consequences of missing the deadline could result in penalties. Taxpayers who fail to file their ITR by the deadline may incur a penalty of ₹5,000 under Section 234F. However, for individuals with an income of less than ₹5 lakh, the penalty will be a reduced amount of ₹1,000.
Failing to file ITR by given last date, the income tax department may levy a penalty of 50 per cent to 200 per cent on taxpayer’s actual income tax outgo, in addition to the tax and interest liability till the date a taxpayer files its ITR in response to the income tax notice from the department.
He added that the Indian government has the power to initiate prosecution against the salaried individuals who have missed filing ITR by 31st December 2023.
The present income tax rules prescribe a minimum sentence of 3 years of imprisonment and a maximum sentence of 7 years of imprisonment. It is not that the department can launch prosecution against you in each and every instance of failure to file the ITR. The income department can launch prosecution only in case the amount of tax sought to be avoided exceeds ₹10,000.
What should you do now?
If you have missed the ITR filing deadline, then you must worry not. You can still your ITR, albeit by paying a late filing fee of a maximum of Rs 5,000. ITR filed after the expiry of the deadline is called belated ITR. This ITR is filed under section 139(4) of the Income Tax Act, 1961.
An individual not having any tax due will first be required to deposit a penalty amount. An individual can file a belated ITR once the penalty is deposited. For small taxpayers having taxable income up to Rs 5 lakh, a penalty of Rs 1,000 will be applicable.
There are certain disadvantages of filing belated ITR, apart from paying a penalty. A belated return does not allow carry forward of losses except those in the case of house property. If any taxes are due, then an individual will be liable to pay penal interest under section 234A, B or C as applicable.