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Income tax return for the financial year 2022-2023 will have to be filed by 31 July. New ITR forms will be available for assessment year 2023-24 from April 1. It is mandatory for those who earn more than the basic exemption limit of Rs 2.5 lakh per annum to submit their ITR before the deadline. However, individuals with taxable income up to Rs 5 lakh who qualify for the exemption are exempted from paying tax.
The government had extended the ITR reporting deadline from July 31 to September 30 last year due to various reasons. However, no date has been given yet for this year’s extension.
What happens if the deadline to file ITR is missed?
Late fee: Under section 234F, a late fee of Rs 5,000 has to be paid. If the total income is less than Rs 5 lakh, then it will be reduced to Rs 1000.
Interest: If you file your return after the deadline, you will be required to pay interest under section 234A at the rate of 1% every month or a fraction of a month on the outstanding tax balance.
Belated Return: If the ITR filing deadline passes unnoticed, you can file a belated return after the deadline. You will not be able to carry forward the loss for subsequent adjustments, but you will still have to pay late fees and interest.
Loss set off: If you have incurred losses on investments in stocks, mutual funds, real estate, or any of your ventures, you can carry them forward and make up the difference against next year’s income. As a result, your tax liability will be greatly reduced. Loss adjustment is allowed only if you include a declaration of loss in your ITR and submit it to the Income Tax Department by the due date.
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