The last date for filing Income Tax Return (ITR) is July 31. This time too, if you fail to file ITR, you will have to pay penalty and interest on the amount of penalty. Let us understand from the experts that how much and how penalty will have to be paid along with interest.
ITR Filing Deadline: If you have not filed your income tax return yet, then you have only 10 more days to do so. This time too, if you fail to file ITR, you will have to pay penalty and interest on the amount of penalty. The last date for filing Income Tax Return (ITR) for the assessment year 2022-’23 (Financial Year 2021-’22) is 31st July.
This last date deadline is for individual taxpayers who do not need to get their accounts audited. There is also a penalty for missing the deadline and you also have to pay interest for late filing of return.
How Much Late Fee
If you miss the deadline of July 31, then you can file late ITR till December 31, but you will have to pay late filing fee. For income above Rs 5 lakh, the late fee is Rs 5,000, while others have to pay Rs 1,000.
Late filing fee will also be applicable to those taxpayers whose income may be less than the tax exemption limit of Rs 2.5 lakh, but they are required to file ITR. This includes those taxpayers who have foreign assets or have earned foreign income or have paid more than ₹ 1 lakh in electricity bill during the financial year. Have deposited more than ₹1 crore in one or more bank accounts and paid more than ₹2 lakh on foreign travel for self or family.
If you have outstanding taxes after the July 31 deadline, you will have to pay a monthly simple interest of 1% on the outstanding amount . On how and how much interest is charged, tax experts say that interest starts counting from the beginning of the month. Understand this with an example that suppose you paid the outstanding tax on the fifth day of the month of August, then you will have to pay 1% interest for the whole month.
With this, suppose you have paid late tax. Now the tax department has calculated your ITR. The department felt that you have not done the calculations correctly and you are facing more tax liability. In such a situation, you will have to pay interest on that additional amount with retrospective effect.
