The last date for filing Income Tax Returns (ITR) for the fiscal year 2021-2022 is nearing and taxpayers have two days--July 30 and July 31 to file theirs.
The tax department has been reminding the taxpayers that the deadline is July 31 and the Finance Ministry has clarified that there will be no extension for the last day of filing ITR this year.
But what happens if you don't submit the ITR by the deadline of July 31?
Late fee
Filing ITR after the deadline counts as filing belated ITR. A taxpayer will be charged with late fine which is Rs 5,000 and for small taxpayers [those who have a total income below Rs 5 lakh] will be levied Rs 1,000 charge.
The late fee needs to be deposited before the belated ITR is filed.
Interest on ITR
Apart from late fees, taxpayers have to pay interest on late tax if they miss the deadline. The outstanding tax has to be deposited along with the interest from July 31.
If the outstanding dues are paid after the 5th of any month, a full month's interest has to be paid at a rate of 1 per cent per month.
No option for carrying forward losses
Taxpayers can lower their tax obligations by balancing company losses or property sales losses against other revenues. Losses can be rolled over to succeeding years however only is the ITR is submitted by the deadline--July 31. If the taxpayers file ITR after deadline, they don't have an option to carry forward their losses.
