Tax return: Did you miss the RIR 2021-22 deadline? Here’s what to do next

The latest filing date of Income Tax Return (ITR) for the year 2021-22 (FY22) was July 31, 2022. Government of India has not extended the deadline for ITR though netizens claimed that they could not file the ITR due to technical issues. Failure.

In FY22, over 50 million ITRs are expected to have been deposited. However, the exact number has not yet been officially released. On the last day, July 31, more than 6.5 million were deposited by 11 p.m.

But what if you can’t produce the RIR 2021-22 before the due date? What can you do now to avoid legal action from the Central Commission for Direct Taxes (CBDT)?

Late ITR

A late ITR can be filed by taxpayers who missed their original deadline. It can be filed before December 31 of the same year. Thus, this year, the last date to file the late ITR is December 31, 2022. However, the government may also announce an extension later.

However, a late ITR also attracts a penalty. Under Section 243(F) of the Income Tax Act 1961, the person has to pay a late fee of Rs 10,000 if he misses the ITR deadline. In her 2021 budget speech, Finance Minister Nirmala Sitharaman reduced this amount to Rs 5,000.

This fine is only applicable if the taxable income is more than Rs 5 lakh per annum. For taxpayers whose annual income is less than Rs 5 lakh per annum, the late fee amounts to Rs 1,000.

Moreover, as the exemption limit under the new tax scheme is Rs 2.5 lakh per annum, a person whose income is below this amount is not liable to pay late fees.

What are the disadvantages of missing the ITR deadline?

There are several other disadvantages to filing the ITR after the deadline.

Interest on tax: The taxpayer is liable for interest on the tax due. It is calculated from the last filing date of the RTI. The interest rate is 1 percent.

No Carryover of Losses: Also, a person who files the late ITR is not eligible to carry forward losses they have incurred as a result of capital expenditures, etc. However, the loss resulting from the sale of an asset can always be carried forward.