1. Have you missed the ITR filing deadline in anticipation of another extension from 31st Dec 2021? No worries. You still have a chance to file your ITR by 31st March 2022.
The due date of ITR filing for individuals, whose accounts are not to be audited has been extended twice – first from the original return filing date of July 31, 2021, to September 30, 2021, and then to December 31, 2021.
2. DUE DATE VS LAST DATE OF ITR: The due date for ITR filing was 31st December 2021 whereas the last date for ITR filing for FY 2021-22 is 31st March 2022. There is a difference between ITR due date and ITR last date.
According to the Income Tax (I-T) department, an assessee who does not submit a return of income within the deadline is allowed to file a belated return at a later stage. The belated ITRs can be filed voluntarily after the normal deadline, up to 31 March of the assessment year. Thus 31st March 2022 is the last date for ITR filing for AY 2021-22. If the March deadline is missed, then the taxpayer cannot voluntarily file ITR. In such a case, the ITR can only be filed in response to a notice from the Tax department.
3. STATUTORY PROVISIONS: Section 139(4) of the Income Tax Act contain provisions relating to the filing of belated returns.
Belated return means the filing of income tax returns after the due date or extended due date. A belated return can also be called a late return or delayed return.
The belated returns can be filed before the end of the assessment year or before the completion of the assessment whichever is earlier. Thus, the belated ITRs can be filed voluntarily after the normal deadline, up to 31 March of the assessment year.
Belated Returns filed under Section 139(4) can also be revised.
The process of filing a belated return is the same as filing the return on or before the due date.
4. CONSEQUENCE OF DELAYED FILING OF ITR There can be some severe outcomes of not filing ITR in time. Some of the most significant ones are as follows: –
(a) Late Fee & Penalty A belated income tax return attracts a late filing fee under Section 234F of the Income Tax (I-T) Act: –
| Sl | Threshold limit of Gross Total Income | Penalty Amount |
| (a) | Gross Total Income is below the basic tax exemption limit i.e. Rs 2,50,000 | NIL |
| (b) | Gross Total taxable income during the financial year does not exceed Rs.5 lakh | Rs. 1000 |
| (c ) | Gross Total taxable income during the financial year exceeds Rs.5 lakh | Rs. 5000 |
(b) Interest Apart from the penalty for late filing, interest under section 234A at 1% per month or part thereof will be charged on the unpaid tax amount. The calculation of the interest will start from the date falling immediately after the due date i.e. 31 December 2021 for AY 2021-22. So, the longer you wait the more you pay.
If the outstanding tax liability is Rs 1 lakh or more, the interest will be levied from the original due date till the date of filing ITR. The original due date for AY 2021-22 was 31st July 2021.
For Example, if your outstanding tax liability of tax is Rs 2 lakhs and you file ITR on 31st March 2022, the interest will be calculated @ 1% per month from 01 Aug 2021 till 31st March 2022. Therefore, it’s advisable to compute tax and pay tax immediately even if ITR may be filed later.
If tax liability to be paid is less than Rs 1 lakh, then there won’t be interest u/s 234A for ITRs filed before Dec 31, 2021.
In addition to financial implications, you will also stand to lose certain benefits for not adhering to the income tax filing deadline. Here are the disadvantages of filing a belated return:
(c) Carry forward loss: If you file a belated return you cannot carry forward losses (except loss from house property). Losses under the following heads of income: – Income from business and profession including speculation business, capital gains, and income from other sources, cannot be carried forward in case a belated return is filed. You will not be allowed to carry forward these losses even if all taxes have been paid in time.
It is suggested that in case you find a little problem with the information collected by you to file the return and the last date is fast approaching, you should file the return with whatever information is available. I T rules permit to file a revised return without a fine.
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The next article will cover provisions of revised return filing.
Disclaimer: The article is for education purposes only
The author can be approached at [email protected]
Author Bio
Due to my illness, I could not file my ITR AY 2021-22 on time. I filed condonation of delay u/s 119(2)(b) manually. But no intimation received till.
Can I file ITR for AY 2021-22 after 31ST MARCH, 2022.
Is there any possibility?
sir
please tell about itr a.y 2021.22 how can possible return today. the I have already tax paid in other source