ITR Filing AY 2022-23: Rs 5,000 Penalty if you Miss Income Tax FY22 Deadline; Know Details

ITR Filing for AY22-23: Tax season is almost coming to an end with the deadline to file income tax returns ending this week on July 31, which is this Sunday. The CBDT and the Income Tax Department have refused to extend the deadline to file ITR for assessment year 2022-23, which means taxpayers will positively have to maintain the due date in order to avoid penalties.

The Income tax department on its Twitter handle has been reminding people to file taxes by July 31 as there will be no extension. It has also been sending SMSes and email communications to taxpayers urging them to file their tax returns. “Over 3.4 crore ITRs filed till 26th July, 2022 & about 30 lakh ITRs filed on 26th July, 2022 itself. The due date to file ITR for AY 2022-23 is 31st July, 2022. File Now if not filed as yet! Avoid late fee,” it said in a tweet dated July 27.

What Happens if You Miss ITR Filing Deadline?

Late Fees

Taxpayers who may not be able to file their IT returns by July 31 can still file them till December 31 as belated return. However, that comes with a price. The late filing of tax return attracts a fee under Section 234F of the Income Tax Act and the penalty payable by assesses filing a late return increases depending upon the degree of delay.

As per Section 234F, a penalty of Rs 5,000 needs to be paid if one files belated ITR after July 31 by taxpayers with total income of Rs 5 lakh and up. For taxpayers with less than Rs 5 lakh total income, the fine amount is Rs 1,000 while those who are exempt from paying income tax do not have to pay any penalty.

Interest on Unpaid Tax

An interest of 1 per cent on outstanding amount is payable if one does not pay an income tax after July 31, 2022. It does not matter in this case whether the amount was filed wrongly by mistake or not. As per the rules, a taxpayer will have to pay the outstanding tax along with this interest from July 31.

Moreover, if someone pays this amount after the 5th day of any month, the interest amount of the full month is to be paid.

No Option to Carry Forward Losses

If a taxpayer misses the July 31 deadline of ITR filing other benefits in addition to the penalties will also be lost. This includes offsetting the losses from business operations or under the ‘Capital Gains’ option. If the ITR is filed within the due date, the government allows to carry them forward to the subsequent years.

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