ITR filing deadline ends tomorrow: What happens if you miss it? Check details

The due date for filing income tax return (ITR) form for the financial year 2020-21 (or AY2021-2022)  is December 31, 2021 i.e tomorrow. Earlier, the government had extended the ITR due date twice- first from July 31 to September 30, 2021, and then to December 31, 2021, for the general category of taxpayers.

It is advisable that all taxpayers file their ITR before the due date of December 31, 2021, as there are consequences for failing to file ITR before the due date.

What happens in case taxpayers miss due date for filing ITR?

There are two significant dates for ITR filing: the due date and the last date. The due date and last date for filing the ITR for taxpayers have been extended to December 31, 2021, and March 31 2022, respectively.

Taxpayers who fail to submit their current ITR by the extended due date of December 31 2021 can do so by the last date of March 1, 2022. However, there are some drawbacks.

Taxpayers will miss the due date lose their right to carry forward any losses for the current year, which cannot be written off against the current year's income. Losses incurred under business income or capital gains or losses beyond Rs 2,00,000 under the house property head cannot be carried forward to the subsequent year.

Taxpayers may not get the benefit of interest if they are entitled to get a refund for the excess taxes paid for the period of delay.

What is the penalty for missing ITR deadline?

Apart from the above drawbacks, taxpayers will have to pay a penalty for missing the December 31, 2021 due date for filing their ITR.

If the taxable income is more than Rs 5,00,000, taxpayers have to mandatorily pay a flat late fee of Rs 5,000, if it is submitted after the due date. The late fee is Rs 1,000 if the taxable income is below Rs 5,00,000.

The present income tax laws prescribe a minimum sentence of three years of imprisonment and a maximum of seven years in case the amount of tax sought to be avoided exceeds Rs 10,000.

Meanwhile, over five crore income tax returns (ITR) for the financial year ended March 2021 have been filed so far, the I-T department had noted Wednesday.

Also Read: Over 5 crore income tax returns filed so far for FY21: I-T dept