ITR Filing 2023 : In every assessment year, the government gives a window of four months so that taxpayers can collect and file their income details at one place. This period begins on 1 April and ends on 31 July. If you do not file your ITR within the stipulated time, then you will have to pay a penalty. You may also get a notice from the Income Tax Department.
There are many benefits if ITR is filed on time
You can claim several deductions and exemptions on your ITR, which can reduce your tax liability. For example, you can claim exemption on medical expenses, insurance and home loan interest. If you miss the ITR filing deadline of 31st July then you may face many problems.
Rs 5,000 fine for missing ITR deadline
Taxpayers who miss the deadline have the option to file ITR after the deadline. You can file this ITR till 31 December 2023 but you will have to pay late fine. If ITR is filed after July 31 and till December 31, then you will have to pay late filing fine. As per Section 234F of Income Tax, if you file your ITR after the due date of 31st July but before 31st December 2023, you will have to pay a maximum penalty of Rs 5,000.
Rs 1,000 fine on income up to Rs 5 lakh
Those whose total income is up to Rs 5 lakh will have to pay a fine of Rs 1,000.
If ITR is filed after December 31, 2023, the penalty amount will be Rs 10,000.
Interest will have to be paid for late ITR filing
If you have any outstanding tax liability, you will also be charged interest on that amount as a penalty for late filing of returns. It also depends on your case. If there is no tax due, taxpayers will not be required to pay this interest just because of late filing of ITR.
Will have to go to jail for not filing ITR
If a person knowingly files the return late even after receiving the message, the Income Tax Officer can take action called Prosecution Procedures. Failure to file ITR can lead to imprisonment of three months to two years. If the amount of tax evasion is more than Rs 25 lakh, then the punishment can be from 6 months to 7 years.
