Taxpayers have to file the income tax return up to July 31. Failure to do so will land the taxpayer in trouble, including penalties and imprisonment.
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With the income tax filing deadline looming on July 31, taxpayers must file their ITR for Financial Year 2022–23 as soon as possible to evade penalties. Every assessment year, the government provides a four-month window to taxpayers for consolidating their income details and filing their ITR properly. The period commences on April 1 and will end on July 31. Every taxpayer should file their ITR on time, failing which they may have to pay penalties. The government often extends the deadline for tax filing, but this time there have been no such announcements till now. So, if you are still procrastinating in filing your tax returns, then the list of consequences will definitely wake you up.
As per the official website of the Income Tax Department, failure to pay your taxes may lead to penalty, interest, or prosecution. In case you fail to file your ITR, here are the possible consequences you have to face:
Penalty For Late Filing Of ITR
Taxpayers will be levied to pay a penalty if they miss filing the ITR. Taxpayers have to pay a penalty for late filing. If you file your ITR after July 31, but before December 31, then the maximum penalty levied will be Rs 5,000. Taxpayers who have a total income of up to Rs 5 lakh, will have to pay a penalty of Rs 1,000.
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Filing ITR After The Due Date
Taxpayers have an option to file a delayed ITR after the specified due date under subsection (8A) of Section 139(1). Also known as belated return, this option helps the taxpayers to file a return for any previous year under Section 142(2). This can be done at any time three months before the end of the relevant assessment year. It is important to note that the last date to file a belated ITR is till December 31 for FY 2022-23 (AY 2023-24). But in case, the ITR is filed after December 31, the penalty amount can go up to Rs 10,000.
Interest To Be Charged
Offenders will be charged punitive interest, apart from the penalty for late filing. The interest will be charged under Section 234A at 1 per cent per month, or part thereof, on tax due until the tax payment.
Prosecution for late filing of ITR
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If a person deliberately fails to file a return after receiving notifications, the officer may initiate the prosecution procedure. The imprisonment for the charges can range from three months to two years. If the tax evasion amount exceeds Rs 25 lakh, the imprisonment can be as long as six months to seven years.
