As per present earnings tax legal guidelines, a late submitting price of as much as R. 5,000 is levied if a belated ITR is filed. Nevertheless, for small taxpayers, the late submitting price is of Rs.1,000 if the taxable earnings doesn’t exceed Rs.5 lakh. The late submitting price is levied below part 234F of the Earnings-tax Act, 1961. Do observe that this late submitting price should be paid earlier than the belated ITR is filed
Yashesh Ashar, Companion, Bhuta Shah & Co LLP – a Mumbai-based chartered accountant agency explains the advantages which can be misplaced for not submitting ITR earlier than the expiry of deadline.
1) If a person recordsdata an earnings tax return after the expiry of the deadline, then he/she will be unable to hold ahead the losses below the next heads:
a) Earnings from different sources
b) Earnings from capital positive factors
c) Earnings from enterprise and occupation together with hypothesis enterprise
Nevertheless, a person is allowed to hold ahead losses below the top ‘Earnings from home property’.
2) If there may be an earnings tax refund due, then tax refund will probably be payable provided that the ITR is filed and verified.
3) A person is eligible for curiosity on earnings tax refund on the charge of 0.5% monthly. Nevertheless, if a person recordsdata belated ITR to assert an earnings tax refund, then no curiosity is payable on the earnings tax refund.
4) A person is liable to pay penal curiosity if there are any tax dues pending on the time of submitting belated ITR. Penal curiosity is levied below part 234A, 234B and 234C, relying on the kind of tax that’s due.
Penal curiosity below part 234A is levied if a person fails to deposit self-assessment tax earlier than July 31. Equally, penal curiosity below part 234B is levied if a person fails to deposit 90% of the advance tax earlier than March 31 of the monetary 12 months. Penal curiosity below part 234C is levied if a person has not made an advance tax cost through the earlier monetary 12 months.
The penal curiosity below all three sections is levied at 1% monthly on the tax quantity dues.
Different issues to bear in mind
Particular person taxpayers ought to observe that there’s a deadline for submitting belated ITR as effectively. If a person misses the date to file ITR, i.e., July 31, 2022, for FY 2021-22, then one should file the belated ITR on or earlier than December 31, 2022, for FY 2021-22.
If a person misses the December 31, 2022, deadline, then he/she will be unable to file ITR until the earnings tax division sends him/her discover for submitting the identical.