We have all received reminders in multiple forms including SMS, emails, social media, etc from the Income Tax Department to file our Income Tax Returns for the AY 2022-2023. The last date to do so was 31 July 2022. However, before understanding what happens on missing this date, let’s dig deeper and understand what this is all about.
What is an ITR?
An Income Tax Return (ITR) is a document to be submitted by every earning member disclosing various incomes and taxes during the year. It must contain all kinds of incomes as well as accurately calculated tax liability. There are 7 kinds of ITR forms with different applicability
Why is filing an ITR Important?
While ITR filing is mandatory for individuals with incomes > 5L per annum, it also has a number of benefits. Some of them being –
- Allowing carry forward of unabsorbed losses to subsequent periods
- Preventing income liability and penalties
- Easier access to loans and credit
- Easier visa processing
- Acting as proof of income as well as address
- Allowing tax refund claims
How to file an ITR?
The process has been made easier than before with the introduction of e-filing ITR with manual filing still being available. Simply log into the portal, fill relevant details and finally submit the ITR
What if you miss the deadline?
According to the Revenue Secretary Mr. Tarun Bajaj, the government has no plans to extend the final date. However, what happens if we missed it? Well you can still do it with additional penalties and charges –
| Income Slab | Last Date | Penalty Amount |
| Greater than Rs 5,00,000 | 31 December 2022 | Rs 5,000 |
| Greater than Rs 5,00,000 | 31 March 2023 | Rs 10,000 |
| Less than Rs 5,00,000 | 31 March 2023 | Rs 1,000 |
Not just this, individuals with outstanding unpaid taxes who miss the deadline also pay an interest of 1% per month on outstanding amount post the due date
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