What happens if you delay filing your IT returns
The deadline for filing your IT returns is 31st December, 2021. But what happens if you miss this deadline? Does it mean you cannot file your returns any more? Definitely not!! You can file delayed returns, but you will be charged a penalty and late filing charges, and will also forego any interest benefits. Also read Insurance and everything you need to know about it
This deadline of 31st December is only for individuals who do not need an audit. The due date has already been pushed twice from 31st July, 2021 and 30th September, 2021.
What happens if i do not file my ITR on time?
You can still pay your taxes after the deadline. However, you will have to pay a penalty and late filing fees. Incase, you had earlier paid excess tax, you will not be eligible for interest on the same.
Late filing or no filing will attract a penalty of ₹5,000. The penalty had been reduced from ₹10,000. If your taxable income is less than ₹5 lakhs, then the penalty is only ₹1,000. There is no penalty if your income does not fall within the tax limit.
If the tax evasion amount exceeds ₹10,000 then as per the current Income Tax laws, the person may be imprisoned for a period of 3 to 7 years.
Apart from the penalty amount, the tax payer will also lose out on benefits such as inability to carry forward losses, and inability to set off current year losses against current year’s income.