The Assessment Year 2022–2023 (Financial Year 2021–2022) Income Tax Return (ITR) is due on July 31st. You only have ten more days to file your income tax return if you haven’t already. You will be required to pay a penalty and interest on the penalty amount if you fail to file an ITR this time as well.
Individual taxpayers who do not need to have their accounts audited must meet this deadline. Additionally, there is a fine for missing the deadline and interest is charged for late return submission. (Readmore:- Bharat Electronics (BEL) Share Jumped 5 Percent in BSE)
What Will Be The Late Fee For Late ITR Filing
Those who miss the July 31 deadline may still submit their ITRs after that date, but they will be charged a late filing fee. The late cost is Rs 5,000 for income over Rs 5 lakh, and Rs 1,000 for all others. Taxpayers who must file an ITR but whose income is less than the Rs 2.5 lakh tax exemption level will also be charged a late filing fee. This includes taxpayers who have assets abroad, receive income from abroad, or who have racked up electrical bills of more than 1 lakh in a given fiscal year. Have paid more than $25,000 for personal international travel and deposited more than $1 crore into one or more bank accounts.
How Much Interest Will Be Charged On Tax Payable
You will be required to pay a monthly simple interest of 1% on any unpaid taxes if you have any as of the July 31 deadline. According to tax experts, interest begins to accrue at the beginning of each month and is levied on a daily basis. Consider the following scenario to better understand this: If you paid the overdue tax on the fifth day of the month of August, you would then be responsible for paying 1% interest for the whole month. Let’s say you paid your tax beyond the deadline. Your ITR has now been computed by the tax department. According to the agency, you made the numbers incorrectly, increasing your tax burden.