Income Tax Return Filing: ITR Due Date Extension Possible ?: Despite the fact that some taxpayers and tax experts are still hoping for a extension in the ITR filing deadline of July 31, the government is reportedly adamant about not changing the deadline.
Several people have urged the government to extend the due date on social media. Many people have even claimed that filing their returns through the e-filing system has resulted in problems. According to reports, the Income Tax Department believes that the deadline should stay the same unless there are significant issues with the e-filing facility.
Recent Information on ITR Due Date Extension
Every year, tax experts ask for an extension of the deadline. There was a significant social media movement calling for a deadline extension, even for AY 2022–2023. Some tax experts even contend that the ITR Due Date needs to be changed from July 31 to August 31 permanently.
Despite being concerned to the problems encountered by citizens as a result of the country’s flooding in some areas and the violence in Manipur, numerous sources have verified that the government is not considering any extension of the due date.
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What happens when you are not filing income tax returns?
You must timely file your income tax returns in accordance with the Income Tax Act. If you are not filing income tax returns, you could be subject to severe fines and have trouble acquiring a job, a visa, etc. On the other side, filing your Income Tax Return (ITR) on time gives you access to a number of benefits.
But when you don’t file your ITR on time then you may face the issues like:
1. Interest on the tax amount:
In accordance with Section 234A, if you don’t make your tax payments on time, you will be required to pay interest at the rate of 1% per month on the unpaid tax balance. From the time your tax return for the relevant financial year is filed until the payment deadline, interest is calculated. Here is an illustration to help you comprehend:
2. No carry forward of losses:
If your investment has suffered a loss, you can use it to reduce your income for the next year. As a result, it will lower your tax obligation for the upcoming fiscal year. Losses must be declared in your ITR by the due date in order to carry them over and offset them. You won’t be able to carry these losses forward and offset them against future gains if your tax return is filed after the deadline. You can, however, carry on the losses incurred in relation to real estate.
3. Penalty charges:
You will have to pay a penalty as one of the main effects of filing your ITR late. If you don’t submit your ITR by the deadline, Section 234F mandates that you pay upto Rs 5,000 late fee. If your yearly income is under 5 lakh, the late fees are only up to Rs 1,000.
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