Taxpayers who miss the due date will still be able to file their Income Tax Return by the last date or the final deadline. But there’s a catch.
The due date to file Income Tax Returns (ITR) for the financial year 2021-22 is July 31. Many taxpayers faced several issues in recent weeks and demands have been made to extend the ITR due date. However, the government is unlikely to do so. Here’s what happens if you fail to file the ITR
Taxpayers who miss the due date will still be able to file their ITR by the last date or the final deadline. The last date is December 31 but there’s a catch. You will have to pay a fee.
The late fee for the taxpayers whose annual income is up to Rs 5 lakh is Rs 1,000. If your annual income is more than Rs 5 lakh the late fine is Rs 5,000. However, you will not be liable to pay a penalty if your gross total income does not exceed the basic exemption limit.
But the basic exemption limit depends on the income tax regime. Under the new regime, the exemption limit is Rs 2.5 lakh, irrespective of the age of the taxpayers. So any taxpayer, irrespective of age, who earns less than Rs 2.5 lakh a year is not liable to pay a penalty for late filing.
INTEREST FOR MISSING DEADLINE
An interest of 1 per cent is applicable on the outstanding amount if you don’t pay tax till July 31, 2022. This is irrespective of whether the tax amount was filed wrong or not.