Deadline to file income tax return today: What happens if ITR is not filed?

According to tax and investment experts, the due date for filing ITR is 31 December 2021 while the last date for filing ITR for FY 2021-22 is 31 March 2022. However, in case of missing ITR due date of 31st December 2021, a taxpayer will have to pay a flat late penalty 5000, if its taxable income is . More than 5 lakhs. In addition, the taxpayer will have to forfeit certain benefits such as carrying forward the losses, interest on the additional tax paid by you.

Loss of profits after ITR due date

Speaking on the loss of benefits to the taxpayer after failing to file ITR within the due date; Karthik Jhaveri, Manager, Wealth, Transcend Capital said, “There is a difference between the ITR due date and the ITR last date. The ITR due date is December 31, 2021, for the year 2021-22, while that of ITR for the financial year 2021-22 is December 31, 2021. The last date is 31st March 2021. However, it is advisable for a taxpayer to file ITR within the due date i.e. 31st December 2021 because after this due date, he can file ITR but carry forward the loss. Certain benefits such as increase will have to be forfeited. After December 31, 2021, an income taxpayer will not be able to claim carry forward of business income or capital gains or losses exceeding Rs.2 lakh under the head House Property.

Kartik Jhavari of Transcend Capital said that in case of failure to file ITR within the due date i.e. by 31st December 2021, the taxpayer will be entitled for ITR refund, but the taxpayer will not get interest on income tax paid in excess of this. Actual income tax liability.

Late penalty after ITR due date

Speaking on ITR Rules on Late Fine; Balwant Jain, a Mumbai-based tax and investment expert said, “A taxpayer will mandatorily have to pay a flat late fee. 5000 at the time of ITR filing, if your taxable income is more than five lakhs, then ITR is to be submitted by 31st December 2021. The late fee, however, is limited to 1,000 if the taxable income is less 5 lakh.” Balwant Jain said that 1,000 late fee is also applicable to those who do not have any income tax liability and are filing their ITR after the due date i.e. 31st December 2021.

What if a taxpayer fails to file his ITR by the last date i.e. 31st March 2022; Balwant Jain said, “If a taxpayer fails to file his ITR by the last date i.e. 31st March 2022, then the Income Tax Department can levy a minimum penalty equal to 50 per cent of the tax, in addition to the income tax and interest liability. Files his ITR in response to the notice from the Income Tax Department.”