This year, the income tax department did not extend the last date for filing income tax returns for the financial year 2021-22 beyond July 31. That was the last date for filing income tax return for the financial year 2021-22.
But that doesn’t mean you cannot file your return if the due date is past.
If you are among those who missed the deadline for one reason or another, you can still file your return within the extended due date of December 31, 2022 after paying the necessary penalty.
Under Section 234F of the Income Tax Act, 1961 a penalty of Rs 5,000 is payable for filing a late return. However, for taxpayers, whose total income is below Rs 5 lakh in a year, the penalty is Rs 1,000.
It should be noted that till FY 2019-20, the penalty for late is penalty was Rs 10,000. But from FY 2020-21, this amount was reduced to Rs 5,000.
Also, till financial year 2019-20 (AY 2020-21), one could file a belated return till March 31 of the assessment year. So, under the previous scheme of things, one could file the belated return for this year (FY 2021-22) till March 31, 2023. But now, because of the amendments announced in Budget 2021, the belated return can be filed only till December 31, 2022.
Previously, till FY 2019-20, the penalty was also levied in two stages. If the return was filed before December 31 of that year, the penalty was kept at Rs 5,000 and for returns filed after December 31, but till March 31 of the next financial year, the fine was Rs 5,000. Now, this fine has been reduced to Rs 5,000.
Also, keep in mind that if you have taxes unpaid, you will have to pay a fine charged at 1 per cent per month on the amount due after the due date and till the date of filing.
There are other consequences of late filing, too. You cannot claim certain deductions under Chapter VI A. Neither can you carry forward any losses incurred during the year.
In effect, you cannot carry forward any losses received under these head if you file a belated return.
Income from business and profession
Income from capital gains, and lastly
Income from other sources
Also, if any refund is due to you for the excess tax paid, you must file your return within the due date if you want to receive the refund at the earliest.