ITR filing last date today: Here's what happens if you miss the deadline

As the deadline to file your income tax returns draws to a close today, it is crucial not to overlook this important date.

As most of the tax experts and chartered accountants suggest that the government has already indicated that the deadline will not be extended this year, the 31 July date becomes even more important for those who are yet to file their returns to avoid penalties.

As of 27 July, with hardly any major glitches observed on the income tax e-filing portal, over 5 crore returns have been filed.

The income tax department had earlier urged remaining taxpayers to complete the process before the deadline to avoid the last-minute rush.

What happens if you miss the deadline?

If you happen to miss the 31 July deadline, there is nothing to worry about as individuals can still file their ITRs. However, it will come with some cost.

The process has been termed as belated ITRs and the last date to file a belated ITR for FY 2022-23 (AY 2023-24) is 31 December, 2023.

Individuals will have to shell out a penalty of up to Rs 5,000 under Section 234F of the Income Tax Act, 1961, while filing belated ITRs. Small taxpayers whose taxable income does not exceed Rs 5 lakh in a financial year have to pay a penalty of Rs 1,000.

In addition to the late fee, any tax amount due will also incur penal interest until it is paid. According to the Income Tax Act, a taxpayer must pay simple interest at the rate of 1 per cent for every month or part of a month, starting from the day immediately following the due date – July 31 – until the actual date of filing the return. So the longer taxpayers delay the process of filing tax returns, the more interest they incur.

Loss of interest on refunds

Missing the deadline can also result in the loss of interest on refunds. Filing your income tax return is the only way to claim a refund for excess taxes deducted. Just like interest on due taxes, taxpayers are eligible to receive interest on refunds as well, but only if they adhere to the prescribed schedule for filing the return.

If the return is filed within the due date, interest at 0.5 percent per month is paid from 1 April until the date of refund. But if the return is filed after the due date, the interest on the refund will be computed from the date of filing the return to the date when the refund is granted, excluding the period from 1 April.

Cannot carry forward losses

Apart from these financial consequences, filing a belated return can also have other drawbacks. Losses can only be carried forward to future years if the return is filed by 31 July, with the exception of house property losses.

High penalties and possible imprisonment

Lastly, it is important to be aware that the tax laws include provisions for penalties (as high as 50-200 per cent), and even prosecution and imprisonment if the return is not filed on time. Even for taxpayers who receive a notice from the tax department, not addressing the concern can lead to prosecution.

Therefore, it is essential to prioritize the July 31 deadline for ITR filing to avoid the various consequences that can arise from missing it. Act now and ensure that your returns are submitted on time to maintain compliance and avoid unnecessary penalties.

How to file I-T return 0nline? 

• Visit the website incometax.gov.in/iec/foportal.
• Login using your PAN card number.
• Click on ‘e-file’ and choose 2022-23 as ‘Assessment year’.
• Select ITR -1 or ITR-4 depending on your annual income, status and other details.
• Select your reason for filing the return and validate your pre-filled information.
• Update your ITR details by uploading the relevant documents.
• Confirm your details and click on verify and submit. This takes a few minutes.
• Select the appropriate verification option under the ‘Taxes Paid and Verification’ tab.

You can e-verify your ITR immediately or within 120 days of filing using the methods listed on the website. The e-verification can be done through Aadhaar OTP, pre-validated bank account, pre-validated demat account or EVC generated through bank ATM. A step-by step guide to filing ITR is also given on the department’s website here.
How to download ITR verification form?

• • Log in to the Income Tax India website
  • Choose ‘View Returns/ Forms’ option on the main page.
  • Your ITR verification will appear on screen.

Will the govt extend deadline to file ITR?

The Centre has clarified in recent weeks that it is not contemplating any extension of the due date, i.e. 31 July for taxpayers whose accounts don’t need to be audited.

Last week, Revenue Secretary Sanjay Malhotra urged people who owe income taxes to file their returns as soon as possible because the finance ministry has no plans to extend the July 31 deadline.

The Income Tax department in a tweet asked taxpayers to file the returns and avoid the last-day rush.

“The IT department has clearly stated in multiple bulletins that there will be no extension for FY2022-23, just as there were no extensions in the previous fiscal year. This decision sets an important precedent for future years, benefiting taxpayers, tax software firms, and CAs, as it allows for better planning and preparation,” Business Today quoted Raghuram Trikutam, CEO, Descrypt, as saying.

On social media, several users have been appealing to the government to extend the due date.

Many have even complained that they have faced errors on the e-filing website while filing their returns.