A tax return is a form, or a variety of forms, submitted to a taxing body that detail one’s income, expenses, and other crucial tax data. Tax returns make it simple for taxpayers to determine their tax liability, set up their tax payments, and ask for refunds for any taxes they have paid in excess of what is required
What happens if the income tax returns are not submitted by the deadline?
An Income tax return (ITR) is a form used to file information about your income and tax to the Income Tax Department.
What is the penalty for late filing of ITR
- The income tax return (ITR) deadline for the financial year 2021–2022 is July 31, 2022. Missing this deadline can cost you even if you don’t have any
- The penalty amount was decreased by half starting in FY 2020–21 (AY 202–22), or last year. As a result, someone filing a belated ITR will now be subject to a maximum fine of Rs. 5,000.
Advantages of Filling ITR
- Loss with an advantage Loss carryover: Taxpayers who suffered losses in any given v year are allowed to take those losses forward and use them to balance their income in future years. But only if ITR is submitted by the deadline will this benefit of loss carryover be accessible. In the event that the ITR is submitted after the deadline, the opportunity to carry the loss forward is lost.
- No Late Cost: If the return is not submitted by the deadline, a late fee of Rs. 5,000 will be assessed. However, if the total income is less than Rs. 5 lakh, only a late fee of Rs. 1,000 will be charged instead of the whole amount of Rs. 5,000.
- Income Tax Refund: The return can only be processed after the ITR has been filed. If there is an excess TDS/TCS, taxpayers can receive income tax refunds sooner by filing income tax returns early.
- Few Deductions are only available if the return is submitted before the deadline. For example, deductions under sections 80HH to 80RRB, 80IA, IB, and IC are only available if the income tax return is submitted by the deadline. Such deductions are refused if a return is filed late.
How to file a belated return?
- The procedure for submitting a late return is the same as submitting it on time.
- The primary distinction would be that you would need to check the box next to the appropriate box on the applicable ITR form for “Return submitted under section 139(4).”
- Additionally, keep in mind that if you are submitting a belated return for FY2021-22 (AY 2022-23), you must fill out the relevant ITRs as announced for FY 2021-22 alone and not for any earlier or later FY.
Can you revise the belated ITR?
- You can, truly. You are allowed to revise a late return starting with FY16-17, or AY17-18.
- However, if you submit your tax return after the cutoff date, you will lose some benefits and be charged a penalty.
What if I have filed my returns but there is an error?
If after filing your tax return you find that you have not reported certain incomes, or some deductions were not availed of in the return computation, it is possible to file a revised return.
How much time do I get to verify my return?
- The process involves more than simply filing your tax return; you also need to have it verified.
- You have 120 days after filing your return to validate it in accordance with current tax legislation.
Can I carry forward losses if I file a belated return?
- Losses under any head of income (other than income from house property.
- It may only be carried forward in accordance with Indian income tax laws if the tax return is submitted before the deadline, which is July 31 of the relevant AY (unless extended by the government).
- However, even if the tax return is filed after the deadline, taxpayers can carry the loss forward under the heading “Income from House Property.”