The deadline to file Income Tax Returns (ITR) for AY 2023-24 is approaching, with only 3 days left until July 31, 2023. The Income Tax department has already received over 5 crore income tax returns. To avoid the last-minute rush, taxpayers are reminded to file their ITR and e-verify it after filing. It is important to note that there will be no extension of the deadline this year.
If you miss the July 31 deadline, there are several consequences. Firstly, a penalty will be imposed under Section 234F of the Income Tax Act, 1961. The penalty amount is Rs 5,000 for a total income over Rs 5 lakh and Rs 1,000 for those earning between Rs 2.5 lakh and Rs 5 lakh. However, there is no penalty for taxpayers whose total income is below Rs 2.5 lakh.
Additionally, if you have any tax liability, an interest of 1% per month will be imposed until the ITR is filed and taxes are paid. This interest payment is mandatory under Section 234A of the Income Tax Act, 1961.
Not filing the ITR on time also means that you will not be able to carry forward any losses for the current year. It can also cause a delay in the refund process and result in a loss of interest on refunds. Filing the income tax return on time is essential to claim a refund for excess taxes deducted. Interest on refunds is paid if the ITR is filed within the deadline, but if it is filed after the deadline, interest will be computed from the date of filing the return to the date when the refund is granted.
A recent survey showed that some individuals will not be able to meet the deadline, while others are still left to file their income tax returns. It is crucial to stay updated on the latest updates by subscribing to newsletters.