Income Tax Return
The Income Tax Return (ITR) serves as the formal submission that every taxpayer is required to make to the income tax department. This obligatory action is carried out annually and serves to disclose the income acquired in the previous year.
The submission of income tax returns can be a monthly or quarterly obligation, depending on whether one has fulfilled their tax liabilities in advance.
The ITR document, known as Form 16, has undergone periodic enhancements, incorporating various fresh attributes designed to facilitate a streamlined and expedited process for submitting your income tax returns.
You have the option to submit your income tax return for any given financial year using a specific form available for download on the official website of the Income Tax Department, accessible at http://www.incometaxindia.gov.in/.
Upon downloading the form, you simply need to complete all the pertinent sections according to your specific needs. Subsequently, you can dispatch the filled form via registered mail or a reputable courier service to ensure its delivery to the designated address within 45 days from the due date stipulated in the Income Tax Department’s notification.
There are numerous advantages tied to electronically filing your income tax return. This method offers swifter processing compared to submitting physical forms at local or overseas offices. The reason for this efficiency lies in the fact that all the requisite data for processing will be electronically transferred to computers situated at NSDL-National Securities Depository Limited (NSDL). Here, the information will undergo further processing steps.
What Happens When You Miss The ITR Deadline?
Fulfilling your responsibility as a taxpayer in India involves timely submission of your income tax return (ITR)
Failure to file an ITR result in incurring penalties and interest charges, which could be costly. It is also possible that your employer can take actions such as the suspension or termination of your employment due to the delay in ITR submission.
If you miss the designated deadline for submitting your tax return in India, several consequences may occur-
· Penalties
Individuals with an annual income surpassing Rs 5 lakh could face a penalty of up to Rs 5,000, can go up to Rs 10,000 in case they submit their Income Tax Return (ITR) after the stipulated deadline.
And if your income exceeds the taxable amount limit, no late fee will be levied for filing the ITR beyond the due date. Nevertheless, it’s important to note that certain exceptions might apply.
· Payment of Interest
Under Section 234A of the tax regulations, individuals who fail to submit their Income Tax Return (ITR) by the specified deadlines are required to pay an interest of 1% for each month or part of a month on the outstanding tax amount.
It’s important to note that the process of filing an ITR cannot proceed if the tax amount remains unpaid. The calculation of this interest begins after the due date for tax filing, typically on July 31st of a specific assessment year. Delays in filing taxes for an extended period will result in a higher accumulation of interest, consequently increasing the overall fine for the delayed submission of the ITR.
· Penalty under Section 271H
Individuals who fail to submit their TCS (Tax Collected at Source) or TDS (Tax Deducted at Source) statements by the specified deadline are subject to a financial penalty ranging from Rs. 10,000 to Rs. 1,00,000. This penalty is levied in addition to the late filing penalty for Income Tax Return (ITR) under Section 234E. The penalty under Section 234E involves a charge of Rs. 200 per day until the TCS or TDS amount is settled.
Conclusion
Taxpayers must ensure they submit their Income Tax Returns (ITRs) by the designated deadline to prevent unfavorable outcomes and penalties for late filing of Income Tax Returns. In case of late filing, they are advised to settle the necessary penalties and try to file the next ITR within the due date.
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