ITR filing last date 2023: What happens if you miss July 31 deadline?
If you happen to miss the July 31 due date, you can file a belated return until December 31, but keep in mind that a late fee will be imposed. Late fees A late fee of Rs 5,000 will be imposed if the return is furnished after the deadline under Section 139(4). But if an individual's total income does not exceed Rs 5 lakh, the late fee will be limited to Rs 1,000. Penal interest on the due tax amount In addition to the late fee, any tax amount due will also incur penal interest until it is paid. According to the Income Tax Act, a taxpayer must pay simple interest at the rate of 1 per cent for every month or part of a month, starting from the day immediately following the due date – July 31 – until the actual date of filing the return. So the longer taxpayers delay the process of filing tax returns, the more interest they incur. Loss of interest on refunds Missing the deadline can also result in the loss of interest on refunds. Filing your income tax return is the only way to claim a refund for excess taxes deducted. Just like interest on due taxes, taxpayers are eligible to receive interest on refunds as well, but only if they adhere to the prescribed schedule for filing the return. If the return is filed within the due date, interest at 0.5 percent per month is paid from April 1 until the date of refund. But if the return is filed after the due date, the interest on the refund will be computed from the date of filing the return to the date when the refund is granted, excluding the period from April 1.
Cannot carry forward losses
Apart from these financial consequences, filing a belated return can also have other drawbacks. Losses can only be carried forward to future years if the return is filed by July 31, with the exception of house property losses. CLICK ON THE LINK FOR COMPLETE VIDEO, https://youtu.be/kxmnXb0r5gE
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