With the deadline of July 31st?approaching, less than four weeks are left for taxpayers to file their income?tax?returns (ITR) for FY 2022每23 (Assessment Year 2023每24) that ended on March 31st, 2023.?
The government gives a four-month window every Assessment Year (A.Y.) for taxpayers to consolidate their income details for the relevant financial year and file their ITR accordingly. The said four-month period starts on April 1 and ends with the deadline, i.e., July 31 (unless extended).??
As a responsible citizen, it is the taxpayer＊s task every year to file their ITR on time, as failure to do so can put you on the receiving end of various penalties levied by the income tax department.
So, if you are still feeling lazy and have not filed your ITR yet despite the July 31 deadline fast approaching, perhaps looking at the consequences of not doing so can wake you up.
In case you fail to file your ITR timely, i.e., if you miss filing it or?file it?after the deadline, you will have to pay the following penalties and face these consequences:
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A late filing fee will be applicable for filing your returns after the due date under Section 234F. For instance, the due date for filing returns for FY 2022每23 is July 31, 2023. If you miss filing the ITR by the due date, you can file the belated return by December 31, 2023. However, you are required to pay the penalty for late filing, as per the Cleartax report.
The maximum penalty of Rs 5,000 will be levied if you file your ITR after the due date of July 31, 2023, but before December 31, 2023.?However, there is a relief given to small taxpayers: if their total income does not exceed Rs 5 lakh, the maximum penalty levied for delay will be?Rs 1,000.
The income?tax?officer can initiate proceedings for prosecution if the person willfully fails to file a return even after issuing notices. The imprisonment can be for a term of three months to two years, with a fine.
If the tax you owe to the income tax department is higher, the prosecution period may extend to seven years.
As per Cleartax, apart from the penalty for late filing, interest will be charged under Section 234A at 1% per month or part thereof on tax due until the payment of taxes.
The Income Tax Department mentions that, as per Section 200(3), every person liable to deduct tax at source is liable to file the statement?in respect of the tax deducted by him, i.e., a TDS return.
Further, as per proviso to Section 206C(3), every person liable to collect tax at source has to furnish a statement in respect of the tax collected by him, i.e., a TCS return. Section 234E provides for the levy of late filing fees for the delay in filing a TDS or TCS return. As per Section 234E, where a person fails to file the TDS or TCS return on or before the due date prescribed in this regard, he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues.?
The amount of late fees, however, shall not exceed the amount of TDS or TCS. A TDS/TCS return cannot be filed after the prescribed due date without payment of late filing fees as discussed above.
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