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Submitting Revenue Tax Returns after deadline


When you don’t file your revenue tax return until due date (31 Aug 22 for FY 2021-22 or  AY 2022-23) all will not be misplaced you can file your revenue tax return with advantageous or penalty. When you miss this deadline as properly, then you won’t be able to file ITR except you obtain a discover from the tax division to take action. This text explains Submitting Revenue Tax Return after the deadline, the final date for submitting Revenue Tax Returns, Penalty in file ITR late

As per part 139 (4) of the Revenue Tax Act, 1961, taxpayers are allowed to file their tax return after due date with a late price. Particular person taxpayers should pay a late price of Rs 5,000 in the event that they miss submitting the ITR by 31 July. If the overall revenue of the particular person is lower than Rs 5 lakh in a monetary 12 months, then he should pay a late price of Rs 1,000.

What is the penalty on Filing ITR Late

What’s the penalty on Submitting ITR Late

Process for Submitting Revenue Rax Return after the deadline

There is no such thing as a distinction within the submitting process earlier than or after the deadline. The steps to file belated ITR are the identical as how ITR is filed earlier than the deadline. Calculation of revenue, the tax stays the identical, however one has to pay a late price, additional tax.

    • Select the evaluation 12 months for which you’re submitting the belated return. For e.g., if you’re submitting the return for FY 2018-19 choose 2019-20 as evaluation 12 months.
    • Choose ITR kind relevant to you and fill in the identical method. The right kind is determined by your sources of revenue.
    • For ITR1/ITR4 you may file on-line or you may Obtain the utility associated to Evaluation 12 months for which you’re submitting from revenue tax web site. Our article The right way to fill ITR1 for Revenue from Wage,Home Property,TDS explains the method with footage.
    • You additionally can not carry ahead any losses. Those that file by the due date can carry ahead their capital losses as much as eight monetary years and alter them in opposition to any future capital positive factors.  For instance, if somebody suffered capital losses in 2013-14, these may be adjusted in opposition to positive factors made until 2021-22. Nevertheless, this profit will not be obtainable if the return is filed after the due date
    • It’s essential file your revenue tax return underneath Part 139(4). Submitting ITR underneath Part 139(1) is simply meant for taxpayers who’ve adhered to the deadline. Our article Fill Excel ITR1 Kind : Revenue, TDS, Advance Tax explains the method of submitting an revenue tax return intimately with footage.
    • File belated ITR under sections 139(4) after due date

      File belated ITR underneath sections 139(4) after due date

  • Penalty for submitting an revenue tax return after the due date underneath part 234F is obtainable from FY 2017-18. The federal government has launched a late price of Rs 5000 if filed between final date and 31 Dec. And Rs 10,000 from 1 Jan to 31 Mar. If a person’s gross complete revenue doesn’t exceed the essential exemption restrict, then he/she won’t be liable to pay late submitting charges if he/she information belated ITR.
  •  If there are any taxes due which is unpaid, penal curiosity at 1% monthly might be charged underneath part 234A, 234B and part 234C.  If there isn’t a tax due, you gained’t be charged any additional quantity.
  • After the ultimate submission, confirm your ITR. Your ITR wouldn’t be thought of legitimate till it’s verified by you. Or ship the ITR-V.
  • The processing of your ITR will start after the IT division receives your verified ITR. You’ll be notified concerning the standing of your ITR by way of SMS in your registered cellular quantity and e-mail.

Why folks miss submitting their Revenue Tax Returns

In some circumstances, it’s the unavoidable circumstances and in some circumstances, it’s sheer laziness. Many assume that My employer has already deducted tax on my wage revenue therefore I don’t must file my revenue tax returns!

Aside from being your authorized obligation Submitting of revenue tax returns is essential to have a three-year file of revenue tax returns for getting a mortgage from a financial institution,  for getting Visa. It’s proof of your monetary life. Our article If You don’t file the Revenue Tax Return on time explains it intimately.

Monetary Penalty on late submitting of ITR

If a person’s gross complete revenue doesn’t exceed the essential exemption restrict, then he/she won’t be liable to pay late submitting charges if he/she information belated ITR.

When you’ve got some tax due, aside from the late submitting price, additionally, you will must pay a month-to-month curiosity of 1% in your tax due until the month of fee.

Part 234F was launched within the Revenue Tax Act from the AY 2018-19 which made revenue tax return submitting obligatory.  Earlier than this was the only discretion of the assessing officer to levy penalty if the person didn’t file his/her tax return earlier than the tip of the related evaluation 12 months.

For small taxpayers whose complete revenue doesn’t exceed Rs 5 lakh, the utmost late price quantity won’t exceed Rs 1,000 no matter when it’s filed, i.e., earlier than March 31.

The late submitting price construction is as follows:

Date of submitting ITR FY 2021-22/AY 2022-23 Quantity (Rs)
After August 31 however on or earlier than December 31

5000
Between January 1 and Jun 30 10,000

Curiosity whereas submitting ITR underneath part 234A, 234B,234C

There are specific varieties of pursuits {that a} taxpayer has to pay for non-payment of taxes.  The picture and desk under present the rationale for the penalty and the part. Our article Part 234A,234B,234C : Curiosity Penalty for not paying Anticipated IncomeTax on Time explains it intimately.

  • Delay within the submitting of Revenue Tax Return underneath part 234A
  • Delayed Cost of Superior Tax underneath part 234B
  • Delayed Cost of Superior Tax Instalment underneath part 234C
Fine for not paying due Income tax on time under section 234A,234B,234C,234F

Advantageous for not paying due Revenue tax on time underneath part 234A,234B,234C,234F

Calculation of curiosity underneath part 234A

Curiosity penalty for delay in submitting an revenue tax return with tax due if any tax is due comes underneath Part 234A.  As per the Revenue Tax Act, when you have any excellent tax payable on the finish of a Monetary 12 months (FY), you should pay the steadiness tax quantity and file your revenue tax returns by final date(July thirty first) of the corresponding Evaluation 12 months (AY). That is referred to as Self Evaluation Tax. Our article  Self Evaluation Tax, Pay Tax utilizing Challan 280, Updating ITR explains it intimately.

When you file your returns after the due date, then underneath Part 234A you’re liable to pay 1% easy curiosity monthly on the steadiness tax payable, relevant from the month of August of the AY until the month during which return is filed. Word Part 234A penalty will not be relevant should you don’t have any steadiness tax payable

So, for instance, when you have an impressive tax payable of Rs. 8,000 and also you didn’t file ITR by the due date of 31 Jul.

  • you file your tax returns on 15 Oct, you’ll have to pay an curiosity penalty of 1% monthly x 3 months on the steadiness tax quantity of Rs. 8,000, i.e. Rs. 240.
  • should you file your returns on 5 Jan, you’ll have to pay an curiosity penalty of 1% monthly x 7 months on the steadiness tax quantity of Rs. 8,000, i.e. Rs. 560.

However When you’ve got excellent tax payable greater than Rs 10,000 along with curiosity underneath part 234A for submitting late you’ll additionally must pay curiosity underneath part 234B & 234C. This additionally applies should you file your revenue earlier than the due date.

Calculation of curiosity underneath part 234B

No less than 90% of the overall tax payable have to be paid by the tip of the Monetary 12 months (FY), i.e. March thirty first. So when you have steadiness tax payable on the finish of the FY, and the quantity is greater than 10% of your complete tax legal responsibility, then you’ll have to pay curiosity underneath Part 234B , a easy curiosity penalty of 1% monthly on the steadiness tax quantity, relevant from April 1 of the Evaluation 12 months (AY). For instance, when you have an impressive tax legal responsibility of Rs. 12,000 on the finish of an FY and pay this quantity on July of the AY, you’ll have to pay a penalty of 4% (1% p.m. x 4 months i.e .01 * 12000), i.e. Rs. 480.

NOTE: Part 234B penalty will not be relevant if the excellent tax legal responsibility is lower than 10% of the overall tax payable for the related FY.

Curiosity penalty for delay in periodic fee of tax underneath Part 234C

Part 234C mandates periodic fee of tax throughout the 12 months, referred to as as Advance Tax in order that not less than 90% of the overall tax due is paid by the tip of the Monetary 12 months. As per this part:

  • 15% of the overall tax quantity have to be paid by June 15.
  • 30% of the overall tax quantity have to be paid by September fifteenth of the FY.
    • If the tax paid by you by fifteenth September of the FY is lower than 30% of complete tax payable for the whole 12 months, then underneath Part 234C you’re liable to pay easy curiosity of 1% monthly for 3 months (i.e. complete 3%) on the shortfall under 30%.
  • 60% by December fifteenth.  If the tax paid by you by fifteenth December is lower than 60% of complete tax payable, once more it’s essential to pay 1% easy curiosity monthly for 3 months on shortfall under 60%.
  • 100% by March fifteenth of the FY.  If the tax paid by you by fifteenth March of FY is lower than 100% of complete tax payable, the easy curiosity of 1% on excellent quantity must be paid.

So in case your complete tax legal responsibility for a given FY is Rs. 1,00,000, then not less than Rs. 30,000 have to be deposited by September fifteenth, Rs. 60,000 by December fifteenth and full quantity, i.e. Rs. 1,00,000, by March fifteenth. When you don’t then it’s essential to pay penalty underneath part 234C. Our article Part 234A,234B,234C : Curiosity Penalty for not paying Anticipated IncomeTax on Time explains it intimately.

Final date for Submitting Revenue Tax Returns

The final date for submitting returns for a person is often 31 Jul of the evaluation 12 months however many instances it will get prolonged.

If one missed the final date for submitting returns, one can nonetheless file returns until thirty first Mar of the Evaluation 12 months. So one can nonetheless file for returns for FY 2018-19 which is AY 2019-20 until thirty first Mar 2020.

When you’ve got acquired a discover from the I-T Division asking you to file your returns which transcend 2 monetary years, then you need to put together your return and submit it to the Revenue Tax Workplace in your ward. Normally, outdated returns are filed as a response to an revenue tax discover.

Associated Articles:

It’s essential perceive that submitting IT returns isn’t just a authorized necessity but additionally a should train on your big-ticket mortgage functions comparable to house loans or getting Visa. It’s in your finest curiosity to file your Revenue Tax Returns well timed. It not solely makes you a law-abiding citizen but additionally saves you from being penalised by the federal government. By when do you file an revenue tax return? Is the method of submitting revenue tax return traumatic?

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