Today is the last day for filing the Income Tax Return (ITR), with no extension. What if you miss

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Today, July 31, is the last day to submit your tax return

Today, July 31, is the due date for filing the income tax return (ITR) for the 2021-22 fiscal year or the 2022-23 tax year.

It does not matter if you have already submitted the declaration or if you can do so before the deadline. But what if you don’t submit the ITR by the July 31 deadline?

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If you miss the July 31 deadline, you still have until December 31, 2022 to file the return. However, there will be late fees. There will also be other financial implications.

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For taxpayers whose annual income does not exceed Rs 5 lakh, there is a late fine of Rs 1,000. The late fee is Rs 5,000 if your annual income exceeds Rs 5 lakh.

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However, you will not be required to pay a late-filing penalty if your total gross income is less than the basic exemption amount.

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The tax system determines the base exemption threshold you select. For taxpayers under the age of 60, the basic tax exemption cap under the old regime is Rs 2.5 lakh.

The basic exemption threshold for people aged 60 to 80 is Rs 3 lakh. The exemption threshold for those over 80 is set at Rs 5 lakh.

Under the new concessional income tax scheme, the basic tax exemption limit stands at Rs 2.5 lakh irrespective of the age of taxpayers.

Total gross income is the amount before any deductions permitted by Sections 80C through 80U of the Income Tax Act.

Failure to meet deadlines has several consequences in addition to late fees. If you miss the deadline, you will have to pay interest on the late tax payment.

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“There might be tax payable when filing an ITR, for example, interest and dividends. The TDS is deducted at 10%, but you are, say, in a 20% tax bracket or 30%; therefore, the differential amount of tax is payable with interest in accordance with Section 234 A at the rate of 1% per month,” Sudhir Kaushik, co-founder and CEO of TaxSpanner, told ANI. .

You can file the unpaid tax if you file the return before the deadline. However, if you miss the deadline, you will be required to retroactively file the unpaid tax and interest to July 31.

Interest for the entire month shall be paid at a rate of 1% per month if the outstanding balance is paid after the fifth day of any given month.

A taxpayer can reduce liability by adjusting losses from business activities or selling property against other income. The ITR must be filed before the loss carry-forward deadline.

“Carry-forward of losses (other than loss of home ownership), if any, is not permitted if you miss the due date. Losses on the sale of property/shares/fixed assets forced to sell during corona must be declared and filed before the due date,” Sudhir Kaushik, co-founder and CEO of TaxSpanner, told ANI.

According to the income tax law, corporate losses (except speculative losses) can be set off against any income item except wage income.

Any unadjusted loss can be carried forward eight years after the current year and deducted from any allowable business income. For example, business losses in fiscal year 2020-2021 may be offset by business profits in fiscal years 2021-2022 onwards.

The income tax department can give you a notice of non-filing on time or of mismatch.

On the possibility of an opinion from the Income Tax Department, Mr. Kaushik said that “during the Covid pandemic, many people have invested in stocks, as we see when filing ITR and AIS (Annual Information Statement). Thus, tax notices for income mismatches/declared loss can also be expected.”

If you miss the July 31 deadline, submitting a late tax return for the 2021-2022 fiscal year is December 31, 2022.

In the event that you even miss the December 31, 2022 deadline for refunds and losses, you would be required to file a petition for tolerance with your local income tax commissioner for refund and losses carried forward. “If the reason is in good faith, you can get permission,” Kaushik said.

There is a huge penalty if you owe taxes. “If you find additional income in the AIS or other documents that was not declared in the original declaration or was not filed at all, then you must pay 50% additional tax on this amount of pending tax if you file an updated return within one year and an additional 100% if filed after one but before two years,” he said.

If you submit your revised return after December 31 but before that date, you must use a new form, ITR U, and explain why your income has changed.

Here are the possible causes:

  • Returns not filed previously.
  • Income that has not been accurately reported.
  • Poorly selected revenue leaders.
  • Reduced losses carried forward.
  • Reduction of unabsorbed depreciation.
  • Reduction of tax credits under Sections 115JB and 115JC.
  • Incorrect tax rate.
  • Others.

How to file tax returns

Here’s how to file your ITR via the e-filing portal:

* Go to the e-filing website, https://www. incometax.gov.in/iec/foportal.

* Log in to your account if you are already registered or create a new registration by providing the required personal and communication information.

* Once connected to the portal, click on the “e-file” tab then on “File Income Tax Return”.

* Select the assessment year and click “Continue”.

* Submit your choice if you want to file your returns online or offline.

* Select “Individual” in the status applicable to your return and then choose the tax returns (ITR) you wish to file. Most salaried persons file their declarations with the ITR -1 form.

* You will then be asked to specify the reason for submitting the RTI from the available options. Validate your choice and go to the next step to fill in your bank details or validate them.

* Declaration tab – Once the taxpayer has completed all the details of the ITR-1 form, he is responsible for filling in the information required in the declarations by verifying that all the details provided in return are correct and complete.

* Check the information submitted to avoid any errors and click on “Proceed to validation”.

* Once the tax return has been filed, taxpayers will receive an SMS/email notification confirming the filing of the ITR.

How do I download the tax return?

It is crucial to file ITRs on time to avoid stress and last minute fines.

The IT department creates the income tax verification form after you submit your ITR so that taxpayers can confirm the integrity of your electronic return. These requests are if you filed your returns without a digital signature.

The tax return verification form can be downloaded in a few easy steps:

1. Log in to the Income Tax India website: click here or visit https://portal. incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng

2. View electronically filed tax returns by clicking on the “View Returns/Forms” option

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