- Date : 11/01/2022
- Read: 3 mins
Missed the 31 December deadline to file your ITR? File a belated return so that you don’t lose more than you already have!
The last date to file your income tax return (ITR) for the assessment year (AY) 2021–22 was 31 December 2021. However, glitches on the income tax portal may have led to a failure to file returns. So what can you do if you have missed filing your ITR on time? Read on to find out.
File a belated return
You can still file a late return. An ITR filed after the due date is called a belated return. For AY 2021–22, the last date to file a belated return is 31 March 2022.
Related: What Documents To Keep Ready While Filing Your ITR?
Be prepared to pay a late fee
There are zero legal implications if you file a belated return by the end of the stipulated period (31 March 2022) for this AY. However, under Section 234F of the Income Tax Act, you have to pay late fees along with the belated return. If your total taxable income is over Rs 5 lakh, this is Rs 5000. But if your income is under Rs 5 lakh, the late fee is Rs 1000.
If your income is below the taxable range, you will not have to pay any late fees. However, if your income is not taxable, but you have income from foreign assets, you will be charged late fees on a belated return. There are no charges if you wish to submit a revised return.
Be ready for the financial implications
Upon submitting a belated return, there will be an interest charge of 1% per month on the unpaid tax amount. The calculation of this interest starts right from the date following the due date of the ITR, which was 31 December 2021 for AY 2021–22. So, the sooner you file your return, the better.
If your outstanding tax liability is Rs 1 lakh and above, interest is levied from the original due date until the belated return is filed. In this case, the original due date was 31 July 2021.
Also Read: 3 Tax Filing Apps That Can Simplify Filing Income Tax Returns
Other restrictions
When filing a belated return, you cannot carry forward losses from the following categories: income from business and profession, income from other sources, and capital gains. These losses cannot be carried forward even if you have paid all the taxes on time. Only the loss from house property up to Rs 2 lakh can be carried forward.
What if you miss the final deadline to submit a late Income Tax Return?
If you fail to submit a belated return by 31 March 2022, the Income Tax department can levy a penalty charge that is equal to 50% of the tax that would have been evaded by not filing the returns. Moreover, there is a danger of imprisonment for three to seven years if you tried to avoid paying tax over Rs 10,000.
Also Read: 6 Reasons Why Housewives Should Consider Filing IT Returns
Last words
Missing the ITR filing deadline is disadvantageous for taxpayers. Use the benefit of the extended period to file a late return. Avoid unnecessary financial or legal implications by filing your belated return well before 31 March 2022.
The last date to file your income tax return (ITR) for the assessment year (AY) 2021–22 was 31 December 2021. However, glitches on the income tax portal may have led to a failure to file returns. So what can you do if you have missed filing your ITR on time? Read on to find out.
File a belated return
You can still file a late return. An ITR filed after the due date is called a belated return. For AY 2021–22, the last date to file a belated return is 31 March 2022.
Related: What Documents To Keep Ready While Filing Your ITR?
Be prepared to pay a late fee
There are zero legal implications if you file a belated return by the end of the stipulated period (31 March 2022) for this AY. However, under Section 234F of the Income Tax Act, you have to pay late fees along with the belated return. If your total taxable income is over Rs 5 lakh, this is Rs 5000. But if your income is under Rs 5 lakh, the late fee is Rs 1000.
If your income is below the taxable range, you will not have to pay any late fees. However, if your income is not taxable, but you have income from foreign assets, you will be charged late fees on a belated return. There are no charges if you wish to submit a revised return.
Be ready for the financial implications
Upon submitting a belated return, there will be an interest charge of 1% per month on the unpaid tax amount. The calculation of this interest starts right from the date following the due date of the ITR, which was 31 December 2021 for AY 2021–22. So, the sooner you file your return, the better.
If your outstanding tax liability is Rs 1 lakh and above, interest is levied from the original due date until the belated return is filed. In this case, the original due date was 31 July 2021.
Also Read: 3 Tax Filing Apps That Can Simplify Filing Income Tax Returns
Other restrictions
When filing a belated return, you cannot carry forward losses from the following categories: income from business and profession, income from other sources, and capital gains. These losses cannot be carried forward even if you have paid all the taxes on time. Only the loss from house property up to Rs 2 lakh can be carried forward.
What if you miss the final deadline to submit a late Income Tax Return?
If you fail to submit a belated return by 31 March 2022, the Income Tax department can levy a penalty charge that is equal to 50% of the tax that would have been evaded by not filing the returns. Moreover, there is a danger of imprisonment for three to seven years if you tried to avoid paying tax over Rs 10,000.
Also Read: 6 Reasons Why Housewives Should Consider Filing IT Returns
Last words
Missing the ITR filing deadline is disadvantageous for taxpayers. Use the benefit of the extended period to file a late return. Avoid unnecessary financial or legal implications by filing your belated return well before 31 March 2022.
