Didn’t File ITR By July 31? Check Who Are Exempted From Penalties

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When filing late ITR, you may not be able to set off or carry forward losses (except for house property losses) or claim certain deductions under Chapter VI-A.

India witnessed a record 6.77 crore income tax returns filed for the assessment year 2022-23 before the deadline. Despite this, a sizable portion of people did not file their ITR by July 31.

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Those who missed the deadline for filing the ITR can still file but are subject to penalties ranging between Rs 1,000 and Rs 5,000. But, it’s worth noting that some individuals are exempted from facing penalties for late filing of ITR.

In case you have missed the deadline for filing your ITR and plan to file it now, it is essential to gather all the required information in advance. Filing your ITR late brings a lot of drawbacks. For instance, you might be liable to pay interest on the income tax amount.

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When filing late ITR, you may not be able to set off or carry forward losses (except for house property losses) or claim certain deductions under Chapter VI-A.

Under the Income Tax Act, late fees for filing ITR after the deadline do not apply to everyone. Individuals whose gross total income does not exceed the basic exemption limit are exempt from paying penalties for late ITR filing. This exemption is specified in section 234F of the Income Tax Act. However, it must be noted here that you are also obligated to pay interest on the outstanding tax amount at a rate of 1% per month in case you missed the deadline. This interest is applicable until you file your ITR. Therefore, the earlier you submit your ITR, the lower the interest amount you will have to pay.

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The new income tax regime has a fixed personal basic exemption limit of Rs 3,00,000 for all individuals. However, in the old tax regime, the basic exemption limit differs based on age. For individuals up to 60 years of age, the limit is Rs 2,50,000, while senior citizens between 60 and 80 years have a limit of Rs 3,00,000. Super senior citizens above 80 years of age enjoy a higher basic exemption limit of Rs 5,00,000.