Penalty on late Income Tax Return for Assessment Year 2021-22: Today (December 31, 2021) is the last day for filing Income Tax Return (ITR) for Assessment Year 2021-22. The Income Tax Department had earlier extended the due dates acknowledging difficulties faced by taxpayers and other stakeholders in filing Income Tax Returns (ITR) and various audit reports for the assessment year 2021-22. The due dates were earlier extended to September 30 and later till December 31, 2021.
It is necessary for all taxpayers to file ITR till date, failing which the tax department will have to pay penalty for late filing.
Cost of not filing ITR before due date
The last date for filing delayed ITR for assessment year 2021-22 is March 31, 2022.
As per income tax rules under section 234F, the penalty for delayed ITR can be up to Rs 10,000.
However, for taxpayers whose total income does not exceed Rs 5 lakh in a financial year, the maximum penalty for delay is Rs 1000.
Taxpayers will have to pay penal interest on any unpaid tax liability for late filing of ITR.
Late ITR filers cannot carry forward the loss under any head of income (other than income from house property). This facility is available only if ITR is filed within the due date. However, the loss can be carried forward to the head of income from house property.
According to the Income Tax Department, more than 5.5 crore Income Tax Returns were filed for AY 2021-22 till 11.30 am on 31st December 2021.
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