What if you fail to file the ITR before the due date? If you fail to file Income Tax Returns before 31 July, can result in serious consequences this y
What if you fail to file the ITR before the due date?
If you fail to file Income Tax Returns before 31 July, can result in serious consequences this year -
This shift could make the situation more costly, as taxpayers who preferred the old tax regime for its deductions and exemptions will find that the new regime does not offer these benefits and may have to pay higher taxes with interest
According to Section 234A of the Income Tax Act, interest will be charged at a rate of 1% per month, or part thereof, on the outstanding tax amount from the due date.
The First point has a significant impact on many individuals who will not be able to choose the old regime. Please share and highlight as many are not even aware of the new provision, which is for FY 23-24. Rest two are routine provisions.
1) No Old Regime
Individuals who have opted for the old tax regime and have already paid taxes and submitted investment and income proofs according to this regime, missing the deadline could lead to the forfeiture of benefits tied to the old tax regime, as taxpayers will automatically be shifted to the new tax regime - this being the default option.This shift could make the situation more costly, as taxpayers who preferred the old tax regime for its deductions and exemptions will find that the new regime does not offer these benefits and may have to pay higher taxes with interest
2) Late fee and penalty
If you miss the last date for filing ITR, you can still submit a late return. Under Section 234F of the Income Tax Act, a late filing fee of Rs 5,000 may be imposed. However, if your income does not exceed Rs 5 lakh, the late filing fee is reduced to Rs 1,000.According to Section 234A of the Income Tax Act, interest will be charged at a rate of 1% per month, or part thereof, on the outstanding tax amount from the due date.
3) No Carry forward of Loss and Setoff
In case you have incurred losses from sources like the stock market, mutual funds, properties, or any of your businesses, you have the option to carry them forward and offset them against your income in the subsequent year. This provision substantially reduces your tax liability in future years. However, you will not be allowed to carry forward these losses if you miss filing your ITR before the deadline.The First point has a significant impact on many individuals who will not be able to choose the old regime. Please share and highlight as many are not even aware of the new provision, which is for FY 23-24. Rest two are routine provisions.
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