"What happens if you miss the deadline for filing your income tax return? Let's explore the consequences of late filing:
Before exploring the consequences of missing the deadline for filing income tax returns lets take a look at the due date for filing Income Tax Return for different type of person for financial year 2022-23 below:
a. Individual & HUF, LLP, Partnership Firm, AOP/BOI, Co-op Soc (Non-Audit Cases ) - Due date is July 31, 2023;
b. Individual & HUF, LLP, Partnership Firm, AOP/BOI, Co-op Soc (Audit Cases ) - Due date is October 31, 2023;
c. Companies - Due date is October 31, 2023
1. Penalty charges:
Late filing of your income tax return attracts a penalty. As per Section 234F, a late fee of Rs 5,000 is applicable if you fail to file your ITR on time. However, if your annual income is below 5 lakh, the late fee is limited to Rs 1,000. Exempted from this penalty are individuals whose gross income falls below the basic exemption limit.
2. Carry forward of losses:
Filing your ITR on time is crucial for carrying forward and setting off losses against future profits. By declaring losses in your return, you can offset them in the coming financial year, reducing your tax liability. However, late filing results in the loss of this opportunity, except for losses related to house property.
3. Interest on tax amount:
If you fail to pay your taxes on time, you will be liable to pay an interest of 1% per month on the outstanding tax amount. This interest is calculated from the date of filing your return till the due date. For instance, if you pay your taxes eight months later, you will be charged 8% interest on the amount owed.
In conclusion, when it comes to filing your income tax return accurately and on time, Instabizfilings can be your trusted partner. With our expertise and experience in compliance services, we understand the importance of meeting deadlines and avoiding unnecessary penalties and charges. Our team of professionals is well-versed in the tax laws and regulations, ensuring that your returns are filed accurately and in compliance with the required timelines. By entrusting your tax filing process to Instabizfilings, you can have peace of mind, knowing that your returns will be handled efficiently and in a timely manner. Say goodbye to the stress of late filings and let us assist you in ensuring a smooth and hassle-free tax filing experience.Understanding the consequences of not filing income tax on time can help you avoid unnecessary penalties and loss of benefits. Stay informed and ensure timely compliance to maintain a hassle-free financial journey."