If you missed the July 31st deadline for income tax return filing, here’s what you need to know. Long story short – you snooze, you lose.
The deadline for filing your income tax return for the assessment year 2022-23 was July 31st, 2022. In case you were hoping for an extension, the government reiterated that there would be no extension this time around. So, in essence, you snooze, you lose. Missed it and wondering what now?
Benefits of Filing ITR on Time
Many organisations, including banks and insurance companies that are issuing loans or life insurance policies, would use your income tax returns as proof of income.
When applying for a visa to travel abroad, consulates of many foreign countries would ask for your tax receipts as proof that you have a legitimate source of income in your home country.
Filing your return on time also means you’re eligible for income tax refunds.
Remember that filing your income tax return is important if you pay TDS (tax deducted at source) in your income, even if you are under the Rs. 2.5 lakh threshold of annual income.
Additional Reading: 5 Benefits of Filing Income Tax Returns
Missed the Deadline, Now What?
In case you missed the July 31st deadline to file your income tax return, you still have time until December 31st this year to file your return. However, remember that you will need to pay a late fee.
Late Fees for Late Filing
You would need to pay a late fee of Rs. 1,000 if your annual income is up to Rs. 5 lakhs. If your annual income is over Rs. 5 lakhs, you would need to cough up a late fee of Rs. 5,000. You will also have to pay interest on the late payment of taxes.
Note that you will not have to pay a fine for late filing of income tax returns if your gross income is less than the basic exemption limit.
If Late Filing is Not Done Too
In the event that you miss the December 31st, 2022 deadline for late filing too, please remember that you will not be able to file your income tax return voluntarily for the 2022-23 assessment year. In such a case, you will be notified by the Income Tax Department about the next steps you’d need to take. Gulp! We do hope it does not come to that!
Additional Reading: Home Loan Tax Benefits
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