homepersonal finance NewsHere is what happens now if you missed to file ITR

Here is what happens now if you missed to file ITR

The taxpayers who managed to edge it within the nick of time need not worry. But for individuals who are still lagging in this regard, there could be potential financial consequences impending.

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By CNBCTV18.com Aug 2, 2022 4:17:56 PM IST (Updated)

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Here is what happens now if you missed to file ITR
The final date for filing the income tax return (ITR) for 2021-22 (FY22) was July 31, 2022, and about 4 lakh people just managed to edge it on the last hour of the deadline. The government of India refused to extend the ITR deadline earlier, despite people on social media claiming that they could not file the ITR due to technical glitches.

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Statistics of Income Tax Returns filed today.
This year 5.83 crore ITRs were filed till July 31, 2022. Out of this, around 72.42 lakh ITRs were filed in a single day on July 31.
 
The taxpayers who managed to edge it within the nick of time need not worry. But for individuals who are still lagging in this regard, there could be potential financial consequences impending.
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What happens if you do not file your ITR by the deadline?
If an individual fails to file ITR within the deadline, they will have to pay a fine for belated filing and an interest on dues may also be levied. There are other consequences of not filing ITR too such as the government may investigate the individual or not filing taxes can backfire while securing a loan.
Fine for belated filing of ITR
A maximum fine of Rs 5,000 (reduced from Rs 10,000) is applicable for individuals with income above Rs 5,00,000.
For individuals with income less than Rs 5,00,000 a fine of Rs 1,000 will be levied for filing ITR after the deadline.
This late fee may go up to Rs 10,000 if late taxpayers file ITR after December 31, 2022 but before March 31, 2023.
However, for individuals whose annual income does not fall in the taxable category (less than Rs 2,50,000) there is no late fine.
Disadvantages of missing the ITR deadline:
There are other disadvantages of filing the ITR after the last date.
Interest on dues: The taxpayer will be liable to pay interest on the due tax in case of late filing. The total interest is calculated from the last date of filing the ITR and the interest rate stands at 1 percent of the dues.
No carry forward of losses: Individuals filing the belated ITR are also not eligible to carry forward the losses they incurred from any capital expenditure or other financial losses. Only the loss from the sale of property may still be carried forward.
 

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