Income Tax Return: The last date for filing income tax returns for the financial year 2022-23 was July 31. If you missed this deadline, don’t panic; you can still file your income tax return with a late fee. The deadline for filing ITR with a late fee is December 31. Failing to file your ITR by this date could have serious consequences. Let’s take a look at the rules.
How Much Is the Penalty?
If you file your ITR after the deadline, a penalty is imposed, depending on your income tax slab. Failing to file an income tax return can also lead to imprisonment. The jail term can range from a minimum of 3 years to a maximum of 7 years. According to tax and investment advisor Balvant Jain, “If you fail to file your ITR by the due date, the tax department can impose a penalty ranging from 50% to 200% of the actual income tax.” He added that this penalty is levied in addition to the tax and interest payable by the taxpayer once the income tax notice is received from the department. He mentioned that the Indian government has the power to initiate proceedings against those who do not file their ITR by December 31, 2023.
You May Escape If Your Tax Liability Is Less Than 10,000
Jain explained, “The Income Tax Act provides for a minimum of 3 years and a maximum of 7 years of imprisonment. It is not the case that the department can initiate proceedings against you for not filing ITR in every case. The income tax department can only initiate proceedings when the tax amount exceeds Rs 10,000.” He also mentioned that if you don’t file your ITR on time, you may have to wait a long time for an income tax refund.
