Take Action Now: Last Chance to File ITR for 2023-24 - Know the Late Filing Charges
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With the income tax return (ITR) filing deadline for the financial year 2022-23 (assessment year 2023-24) fast approaching, individuals are reminded to file their returns before July 31, 2023, to avoid facing penalties and loss of certain benefits. However, if the deadline is missed, taxpayers can still file a belated ITR up until December 31, 2023. Recent reports from The Economic Times highlight the implications of belated ITR filing , including penalties and potential loss of opportunities to offset losses against future gains.
Penalties for Belated ITR Filing under Section 234F
According to a report by The Economic Times, taxpayers who fail to file their ITRs by the July 31 deadline for FY 2022-23 may incur penalties. As per Section 234F of the Income Tax Act , 1961, individuals could face a penalty of up to Rs 5,000 for filing a belated ITR. However, small taxpayers with a taxable income of up to Rs 5 lakh may be subject to a reduced penalty of Rs 1,000. It is important for taxpayers to adhere to the prescribed deadline to avoid such penalties.
Beware of Penal Interest on Late ITR Filing
Aside from penalties, taxpayers who are liable to pay taxes and file their ITRs after the deadline may also be subject to penal interest. Sections 234A, 234B, or 234C of the Income Tax Act may apply, depending on the taxpayer's circumstances. The penal interest amounts to 1 per cent per month or part thereof for late filing of ITR , and an additional 1 per cent on the default in payment of advance tax until the date of filing the belated ITR. It is crucial for taxpayers to file their returns on time to avoid these additional financial burdens.
Loss of Benefits on Belated ITRs
Apart from penalties and interest, filing the ITR on time is essential to avail certain benefits. The report from The Economic Times emphasizes that timely ITR filing allows individuals to utilize losses, such as those from the sale of mutual funds or equity shares, for offsetting against future gains. However, if the ITR is filed beyond the due date, except for losses under the head house property, these losses cannot be carried forward for set-off. This may result in taxpayers missing out on potential opportunities to reduce their taxable income and the income tax payable in the future.
With the deadline for filing income tax returns for FY 2022-23 nearing, taxpayers are urged to act promptly and submit their returns before July 31, 2023, to avoid penalties, penal interest, and loss of beneficial provisions. Filing on time not only helps individuals meet their tax obligations but also enables them to take advantage of various tax-saving opportunities and carry forward losses for future benefits. Remember, the last date for belated ITR filing for FY 2022-23 is December 31, 2023.
Penalties for Belated ITR Filing under Section 234F
According to a report by The Economic Times, taxpayers who fail to file their ITRs by the July 31 deadline for FY 2022-23 may incur penalties. As per Section 234F of the Income Tax Act , 1961, individuals could face a penalty of up to Rs 5,000 for filing a belated ITR. However, small taxpayers with a taxable income of up to Rs 5 lakh may be subject to a reduced penalty of Rs 1,000. It is important for taxpayers to adhere to the prescribed deadline to avoid such penalties.
Beware of Penal Interest on Late ITR Filing
Aside from penalties, taxpayers who are liable to pay taxes and file their ITRs after the deadline may also be subject to penal interest. Sections 234A, 234B, or 234C of the Income Tax Act may apply, depending on the taxpayer's circumstances. The penal interest amounts to 1 per cent per month or part thereof for late filing of ITR , and an additional 1 per cent on the default in payment of advance tax until the date of filing the belated ITR. It is crucial for taxpayers to file their returns on time to avoid these additional financial burdens.
Loss of Benefits on Belated ITRs
Apart from penalties and interest, filing the ITR on time is essential to avail certain benefits. The report from The Economic Times emphasizes that timely ITR filing allows individuals to utilize losses, such as those from the sale of mutual funds or equity shares, for offsetting against future gains. However, if the ITR is filed beyond the due date, except for losses under the head house property, these losses cannot be carried forward for set-off. This may result in taxpayers missing out on potential opportunities to reduce their taxable income and the income tax payable in the future.
With the deadline for filing income tax returns for FY 2022-23 nearing, taxpayers are urged to act promptly and submit their returns before July 31, 2023, to avoid penalties, penal interest, and loss of beneficial provisions. Filing on time not only helps individuals meet their tax obligations but also enables them to take advantage of various tax-saving opportunities and carry forward losses for future benefits. Remember, the last date for belated ITR filing for FY 2022-23 is December 31, 2023.
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