The Central government extended the due date to December 31 for filing the Income Tax Return (ITR) for the general category of all taxpayers. But what happens if taxpayers can't file the ITR by December 31, 2021?
Now, there are two significant dates for ITR filing: the due date and the last date. The due date and last date for filing the ITR for taxpayers have been extended to December 31, 2021, and March 31 2022, respectively.
Taxpayers can submit their current ITR by the extended due date of December 31 2021, or by March 31 2022.
However, the drawback is that taxpayers lose their right to carry forward any losses for the current year, which cannot be written off against the current year's income. Losses incurred under business income or capital gains or losses beyond Rs 2,00,000 under the house property head cannot be carried forward to the subsequent year.
Further, taxpayers may not get the benefit of interest if they are entitled to get a refund for the excess taxes paid for the period of delay.
In addition, if the taxable income is more than Rs 5,00,000, taxpayers have to mandatorily pay a flat late fee of Rs 5,000, if it is submitted after the due date. The late fee is Rs 1,000 if the taxable income is below Rs 5,00,000.
Further, the present income tax laws prescribe a minimum sentence of three years of imprisonment and a maximum of seven years in case the amount of tax sought to be avoided exceeds Rs 10,000.