By: Subhojit Sarkar | Updated at : 21 Jun 2024 07:24 PM (IST)
ITR Filing: For the financial year 2023-24, the assessment year is 2024-25, making the filing deadline July 31, 2024. However, a belated return can be filed until December 31. ( Image Source : Pexels )
ITR Filing: A significant number of individuals either miss the deadline for filing their income tax returns (ITRs) or neglect to file them entirely, often due to a lack of awareness or sheer lethargy. One common misconception is that employees who have had tax deducted at source (TDS) by their employers, and received Form 16, believe they have no additional tax responsibilities. They mistakenly equate paying TDS with filing a tax return, which is not the case.
Individuals with lower incomes frequently assume they are exempt from filing returns. However, there are additional criteria beyond income levels that necessitate filing an ITR. Missing the filing deadline can lead to undesirable consequences. Understanding these requirements can help avoid potential penalties. What if you fail to comply with the I-T laws?
Filing an ITR is required for individuals whose income, before exemptions and deductions, exceeds the threshold limit. For the financial year 2023-24, these limits are set at Rs 2.5 lakh for individuals below 60 years, Rs 3 lakh for those aged 60 to 80 years, and Rs 5 lakh for those above 80 years.
There are other circumstances where filing a return is necessary. These include:
The deadline to file an ITR is July 31 of the assessment year. For the financial year 2023-24, the assessment year is 2024-25, making the filing deadline July 31, 2024. However, a belated return can be filed until December 31.
Failure to file an ITR can result in several penalties, including penal interest, late fees, and even potential imprisonment for those required to file a return. Filing after the due date but within the belated return timeline incurs a late fee along with interest payable.
Understanding and adhering to these requirements can help avoid the complications and penalties associated with late or missed tax return filings.
Mani Palaniappan, CFO at Expleo India, said income tax laws mandate that anyone with a taxable income, or those who meet certain specified conditions, file income tax returns on time and pay the required taxes. Failing to comply with this could lead to consequences and penalties. Palaniappan, in the following, has mentioned some of the penalties and consequences.
If the tax department detects there is taxable income and the returns are not filed, they may send a notice. This might result in huge penalties, and the unpaid taxes, if any, have to be paid with interest at 1 per cent per month on the unpaid tax amount. In some cases, this can even lead to imprisonment for a term ranging from three months to seven years, depending on the undisclosed income and the tax not paid.
If the business incurs a loss or makes capital gains, the same cannot be carried forward to reduce future tax liability if the returns are not filed or not filed on time. Non-compliance with tax laws can restrict individuals to certain financial transactions, such as obtaining loans or visas. These opportunities may be lost as proof of tax compliance is often required to process the application.
If the returns are filed late after the due date, the penalties for late filing can be significant, depending on the delay. Interest may also be charged on any tax payable that remains unpaid. A revised return with corrections if any, cannot be filed if the original return is not filed within the due date.
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