People earning more than Rs 3 lakh annually should file ITR. Corporate companies are also issuing Form-16 ahead of time to help their employees file ITR on time.

Currently, taxpayers will file returns for the income earned in the financial year 2022-23. By filing ITR, you declare your investments and earnings to the government. This time the last date for the ITR files to be filed has been set as 31 July 2023. In such a situation, taxpayers should start collecting all the documents related to ITR.

Category wise last date for filing ITR

1. The last date for filing returns for individual taxpayers, HUF, AOP, BOI or those whose account books are not required to be audited is 31 July 2023.
2. The last date for filing ITR for businesses whose account books need to be audited is 31 October 2023.
3. Businesses that have international transactions or specific domestic transactions have been given the last date of 30 November 2023 for filing returns.
4. The last date for filing Revised ITR and belated return has been fixed as 31 December 2023.

ITR Late Fee and Penalty

If taxpayers file their return after the prescribed last date, then they will have to pay interest at the rate of 1% per month on the unpaid tax amount under section 234A. At the same time, under Section 234F, taxpayers will have to pay Rs 5,000 as late fee for missing the due date. On the other hand, if the total income of taxpayers is less than Rs 5 lakh, then this late fee will have to be paid Rs 1,000.

The post ITR Filing FY 2022-23: Deadline announced for filing ITR for FY2022-23, penalty will be imposed on delay first appeared on Rightsofemployees.com.

If you have not yet filed ITR, then do it before 31 July. Filing ITR on time is good for you in many ways. If you do not file ITR by the due date for the financial year 2022-23, then belated returns will have to be filed. For this, you are being given time till December 31, 2023 by the department. If you are also unable to file ITR by July 31, 2023 for any reason, then you may suffer the following losses.

Late ITR filing attracts a penalty of Rs 5,000 for individuals with income above Rs 5 lakh. The fine is Rs 1000 on income up to Rs 5 lakh. Also, non-filing of ITR on time may result in loss of certain tax deductions and exemptions. Eventually, this may increase your tax liability. If you file ITR after December 31, 2023, then you will have to pay a fine of Rs 10,000.

Interest on Late Filing

If your income is taxable, then for not filing the return by 31st July, you will be charged additional interest at the rate of 1% every month till the ITR is filed. Under this, an interest of 1% is levied till the date of filing the return. After 31st December the assessee shall have the option to file the updated return only in case tax is due but is to be paid for the updated return up to 31st March 2024.

The prosecution

can be fined up to 50% for under-reporting income and up to 200% for misrepresenting income. Experts say that if the tax return is not filed despite the reminder, the authorities may have to start the prosecution process on the basis of outstanding tax. In this, there can be imprisonment from three months to 7 years.

There is no benefit of the new tax regime,

if you are late from March 31, then the salaried employees cannot select the option of the new tax regime. If they select this option with the employer, then additional tax and interest will have to be paid for late filing of ITR. Let us tell you that in the budget presented on February 1, the Finance Minister had kept income up to Rs 7 lakh tax free under the new tax regime.

Delay in refund

Another disadvantage of filing late ITR is that if you get tax refund then it can be delayed. Such delays can lead to unnecessary financial stress and inconvenience. Additionally, late filing of ITR may attract the attention of the authorities. This increases the chances of audits and inquiries in their tax matters.

The post ITR Filing FY 2022-23: Government has changed the rules! If ITR is not filed till 31st July then it will be a loss first appeared on Rightsofemployees.com.