Income tax return: Missed ITR 2021-22 deadline? Here’s what to do next
The last date for filing the income tax return (ITR) for the year 2021-22 (FY22) was July 31, 2022. The government of India did not extend the ITR deadline, despite netizens claiming they could not file the ITR due to technical glitches.
In FY22, over 50 million ITRs are expected to have been filed. However, the exact number is yet to come out officially. On the last day, July 31, over 6.5 million were filed by 11 PM.
But what if you could not file the ITR 2021-22 before the due date? What can you do now to avoid any legal action from the Central Board of Direct Taxes (CBDT)?
A belated ITR can be filed by the taxpayers who have missed their original deadline. It can be filed before December 31 of the same year. So, this year the last date for filing the belated ITR is December 31, 2022. However, the government might later announce an extension too.
However, a belated ITR also attracts a penalty. Under section 243(F) of the Income Tax Act, 1961, the person must pay a late fee of Rs 10,000 if they miss the ITR deadline. In her Budget 2021 speech, finance minister Nirmala Sitharaman reduced this amount to Rs 5,000.
This fine is only applicable if the taxable income is more than Rs 5 lakh per annum. For taxpayers with an annual income of less than Rs 5 lakh per annum, the late fee stands at Rs 1,000.
Also, as the exemption limit under the new tax regime is Rs 2.5 lakh per annum, a person with an income less than that is not liable to pay any late fee.
What are the disadvantages of missing the ITR deadline?
There are several other disadvantages of filing the ITR after the last date.
Interest on dues: The taxpayer is liable to pay interest on the due tax. It is calculated from the last date of filing the ITR. The interest rate stands at 1 per cent.
No carry forward of losses: Also, a person filing the belated ITR is not eligible to carry forward the losses they incurred from any capital expenditure etc. However, the loss from the sale of property may still be carried forward.