Last Day To File Income Tax Returns: What Will Happen If You Miss Deadline

Today, July 31, 2023 is the last date to file the Income Tax Returns for assessment year 2023-2024. The Income Tax department has been constantly urging people to file their returns within the due date as there will be no extension given this year. 

If the return is filed after the required last date, the taxpayer might invite penalties and troubles for himself. The latest update also showed that on July 30, by 6:30 pm, over 6 crores ITRs were filed. 

Our government is very vigilant when it comes to filing the ITRs. Earlier, extensions have been given but this year the finance ministry is planning not to extend the last dates. 

Do you know what will happen if you file the ITR after 31 July 2023? Here are some penalties and consequences-

Delay or Loss of Refund Claims

If you file your ITR within the given time then you can claim refund if there’s an excess tax deduction. Filing of an ITR makes you eligible to receive interest excess deduction. This can only happen if you adhere the prescribed schedule. 

Late Fees

If you don’t file your ITR within the scheduled period then you will still have the option to file it but with a penalty of ₹5000. All of these ITRs must be filed before 31 December 2023. The late fees will be restricted to ₹1000 if a tax payer’s total income doesn’t exceed ₹5, 00,000. 

Imprisonment and Fine

Not only the monetary fines but tax payer might face imprisonment if he/she does not file the Income Tax Return. If your tax payable is more than ₹25, 000 then the imprisonment may last upto 6-7 years with fine. 

No losses or remaining amounts

If you don’t file your ITR within the due date then you may carry forward your due tax that may lead to losses for the future years. However you shall be allowed to carry forward the losses occurred under “ Income from house property “ or “unabsorbed depreciation”.

Interest on the Taxabale amount

If there is a delay in filing of the ITR then the government may charge an interest of 1% per month on the amount which is taxable. The interest will be applicable on TCS ( tax collected at source), TDS (tax deducted at source), advance tax and other tax credits available under the law. Even a delay of a single day might invite interest for a month.

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