Industry Odisha Bureau, Jul 28: Since the official deadline to file Income Tax Returns (ITR) has much earlier been announced to be July 31 in the current year, experts have reportedly warned the ITR filers to hurry up, or else, delay in filing is obviously going to cost dear in shape of coughing up “late fees, penalties, mounting interests, delayed refunds, and reaping future tax benefits” in accordance with the Income Tax (IT) Act, 1961”.
According to the experts, “If one misses the ITR filing deadline, one can still file a belated return or seek condonation of delay, but penalties, interest, and loss of certain benefits may apply.”
Consequences of Late Filing: “Late Filing Fee (Section 234F)”: “Filing after the due date can attract a fee of ₹5,000 for incomes above ₹5 lakh and ₹1,000 for incomes up to ₹5 lakh. No fee applies if income is below the taxable limit (Section 234F).”
“Interest on Unpaid Tax (Section 234A)”: “Interest at 1% per month is charged on unpaid taxes from the due date until filing.”
“Loss of Carry-Forward Benefits”: “Business and capital losses cannot be carried forward if ITR is filed late, except for house property losses and unabsorbed depreciation.”
“Delayed Refunds”: “Refunds may be postponed due to system checks, mismatches in AIS/Form 26AS, or pending e-verification.”
“Restriction on Old Tax Regime”: “Late filers must use the New Tax Regime, losing the option to claim certain deductions and exemptions.”
“Best Judgment Assessment & Legal Action”: “The Assessing Officer may estimate income if ITR is not filed, and in serious cases, prosecution is possible.”
