As the deadline to file the income tax return for FY 2022 or Assessment Year 22-23 draws near, sources shared that government has received close to 4.30 crore IT Returns till 4PM today.
“We have received close to 4.30 crore IT Returns till 4PM today, out of these in last hour itself (3PM-4PM) 3.13 lakh returns have been filed and about 21 lakh returns have been filed between 12 midnight till 4PM of July 29,” sources told CNBCTV18.
Out of the 4.3 crore returns filed so far, the tax department has received verifications for 3.09 crore returns. Out of this, 2.8 crore returns can be processed by the tax department and it has already processed 86 percent, that is , 2.42 crore returns, sources added.
However, tax practitioners and taxpayers continue to request the government to extend the deadline to file IT returns, but government sources added that there is no such decision taken by the government as of now and the current deadline of July 31 holds.
Going by the current filing rate, government expects 5.5 crore IT Returns to be filed by July 31, sources added.
Also, as per the data shared by sources, on an average 1 crore taxpayers pay a late fees and penalty every year and government has been taking efforts to reduce this number.
Not just this, taxpayers and tax practitioners continue to complain about IT glitches being faced by them. Sources at the tax department shared that “as and when genuine glitches are noted, the tax department proactively takes note of these glitches and immediately asks Infosys to rectify them to have a smooth filing process”.
Infosys maintains the IT backbone of the system through which taxpayers can file their returns.
But, does this mean, if you have missed the deadline you cannot file your return?
Well! the process to file your return continues to remain open for 2 years, but it has heavy costs and penalties attached to it.
According to experts, it is advised to file and pay your taxes in time. Sandeep Jhunjhunwala, Partner, Nangia Andersen LLP says, “Delayed filing of IT returns entails a fee of Rs 1000 and Rs 5,000 depending on your income bracket. Where the taxpayer has a tax payable i.e. advance tax and withholding tax credit is not sufficient to cover the overall tax dues, then, in addition to late fees, an interest liability also triggers".
"Such interest liability is calculated as a simple interest payable at the rate of 1 percent per month (including part of the month) on the taxes payable from the date immediately after the due date till the date of filing ITR form. Also, the period for which interest is payable on shortfall of advance tax, if any, gets extended upto ITR filing date resulting in additional interest liability".
"Such interest is payable only on taxes due and not on late fee. Where the taxpayer does not have any taxes payable, the taxpayer is liable to pay only the late fee on delayed filing of ITR form,” he added.
WHAT IT COSTS IF YOU DO NOT FILE YOUR IT Return IN TIME?
If we take the case of the IT returns due on July 31, 2022 and you miss the deadline. In this case, according to section 234 (F) of Income Tax Act a late fees will be levied. Even an interest is also charged by the tax department.
Here are the details:
If Taxable income is upto Rs 5 lakh/ annum – Rs 1000
If Taxable income is above Rs 5 lakh/ annum – Rs 5000
*if return is filed between Aug 1 - Dec 31
1 percent per month on tax due for late filing in addition to interest for late payment of tax
If you have loss then that cannot be carried forward if the return is not furnished by July 31, 2022
IF YOU FILE AFTER 31ST DEC, 2022:
You then treated as a NON- FILER
You GET 24 Months from the end of the Assessment Year (March 31 ‘2023) to update your return:
The updated return too comes with an additional cost:
Incase, you update your return between April 1, 2023 - March 31, 2024, then you will have to pay: TAX Due + Interest + 25 percent of aggregate of Tax and interest payable.
But, if you are still not able to file your return and chose to file it between April 1, 2024 — March 31, 2025, then you will have to pay: TAX Due + Interest + 50 percent of aggregate of Tax and interest payable.