Income Tax Return Filing: Know Penalty & Other Impact If You Don’t File ITR By July 31

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If the ITR is filed after December 31, 2023, the penalty amount will be Rs 10,000.

ITR Filing 2023: Every Assessment Year (AY) the government provides taxpayers with a four-month window to consolidate their income details for the relevant fiscal year and file their ITR properly. The four-month period begins on April 1 and concludes on July 31 (unless extended). If you do not file your ITR by the deadline, then you will have to pay the penalties and you may also receive notice from the Income Tax Department.

Also Read : ITR filing deadline: Rs 5,000 penalty to 7 years of jail, if taxpayers fail to do it before July 31

There are a number of deductions and exemptions that you can claim on your ITR, which can reduce your tax liability. For example, you may be able to deduct medical expenses, insurance and home loan interest.

Here are the possible consequences if you miss filing ITR by the deadline of July 31:

Penalty for missing ITR deadline

Taxpayers who miss the deadline have an option to file a belated ITR. The last date of filing belated ITR is December 31 for FY 2022-23 (AY 2023-24). If ITR is filed after the due date (which is July 31) and on or before December 31, then a late filing fee will be levied.

As per Section 234F of the Income Tax Act if you file your ITR after the due date of July 31, but before December 31, 2023, you will face a maximum penalty of Rs 5,000.

Those who have a total income of up to Rs 5 lakh will have to pay a penalty of Rs 1,000.

If the ITR is filed after December 31, 2023, the penalty amount will be Rs 10,000.

Penal Interest

If you have any outstanding tax liability, you will be charged punitive interest on the amount, as applicable in your circumstances, if you file a late return. If no tax is due, then the taxpayer will not be required to pay this interest solely because of the late submission of the ITR.

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If a person deliberately fails to file a return after receiving notifications, the income tax officer may commence prosecution procedures. The imprisonment might range from three months to two years for not filing ITR.

If the tax evasion amount exceeds Rs 25 lakh the imprisonment could be from 6 months to 7 years.