The deadline to file an income tax return (ITR) for the assessment year 2022-23 for individual taxpayers was July 31. Those who plan to file the ITR after the due date will have to pay a penalty of ₹ 5,000.
However, there are certain cases when this penalty is not levied even if one fails to file the income tax return by the due date.
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Since the deadline of July 31 has passed, one must file a belated ITR. The penalty of ₹ 5,000 will be imposed in this case as per the existing law, but a few individual taxpayers are exempted from paying the penalty.
If the assessee’s total income is within the basic exemption limit, no penalty will be levied.
As per the new regime, the basic exemption limit for an individual taxpayer is ₹ 2.5 lakh, while under the old tax regime, the exemption limit depends on the taxpayer’s age.
According to the old tax regime, the exemption limit is ₹ 2.50 lakh for taxpayers up to the age of 60 years.
Senior citizens aged between 60 and 80 years with annual earnings of up to ₹ 3 lakh also fall under the exempt category. The exemption limit for those above 80 years, super senior citizens, is ₹ 5 lakh.
However, it must be noted that even if an individual’s income is less than the annual tax exemption limit, individuals must file the ITR under certain conditions.
If the taxpayer has deposited a total of above ₹ 1 crore in one or more than one current account with a bank or cooperative bank in a financial year, it’s mandatory to file ITR.
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Similarly, if an individual spends more than ₹ 2 lakh for himself or someone towards travel to foreign countries will be liable to file ITR.
An individual taxpayer who has paid electricity bills above ₹ 1 lakh in a year is also mandated to file an income tax return.
The individuals required to file ITR under these conditions mandatorily should adhere to the deadline. These taxpayers will be penalised for missing the deadline to file ITR.
