The last date for submission of Income Tax Return (ITR) is 31st July of the applicable assessment year (AY) for all assessees except companies, non-individuals His account and a few more people have to be considered. Therefore, the ITR filing deadline for fiscal year 2021–2022 (FY2022) — which includes small business income, employment and wages — is July 31, 2022.

Last minute mistakes and problems with the e-filing site are common. It is recommended to file the refund in advance for this reason. Additionally, if there is a delay in the income tax portal, the deadline may not be reached. You can send your tax return after the deadline, but interest and penalties will apply later.

Although the ITR filing deadline is July 31, it can still be filed up to December 31 of the exam year (AY2023 this time). However, this is known as a late return. Along with the interest, there are penalties that must be paid.

A late return can be submitted at any time, as long as it is three months or more before the end of the examination year or assessment process, whichever comes first. Until December 31, 2022, or three months before the end of AY2023 on March 31, 2023, late returns for 2021–22 may be submitted.

What happens when you file a late return

ITR cannot be filed voluntarily after December 31 of the academic year. After that, the income tax department will inform you what to do if they get the income tax details that are available for inspection.

If the total income to be reported exceeds Rs. 5 lakh, a penalty of Rs. 5,000 will be estimated for late submission of the letter. The price is up to 1,000 if the total income of the person is less than a year 5 lakhs.

Additionally, you are subject to fines for doing so. According to Section 234C, if you do not pay your taxes in advance on time, you have to pay a penalty of 1% of the amount of taxes you pay until you pay them or until the end of the tax year.

You must pay 1% interest on your tax liability every month or part of a month, under Section 234b, based on when you filed your tax return between April 1 and July 31 in the exam year. Starting in August, you will be charged 2% monthly interest on unpaid taxes until you pay the unpaid taxes and file your return.

Failure to send a check carries penalties and interest. Losses cannot be deducted when submitting a late return. This effectively means that no loss under the head ‘profits’ or ‘business and employment’ can be carried forward or left out in the next year if you do not file the return on time. Additionally, if a taxpayer fails to file a late return, the taxpayer may receive an investigation notice.

The Income Tax Department has reported receiving over two crore ITRs for AY 2022-23. “We encourage you to file your ITR at the earliest, if you haven’t already,” he said on Twitter.

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