ITR Filing 2023: The income tax return (ITR) submission deadline is July 31, 2023, giving people just one week to complete their ITR. The income tax agency has been advising people to file their forms as soon as possible and not wait until the last minute in order to avoid late fines or penalties. “As the deadline for filing ITR for FY 2022-23 (AY 2023-24) nears on 31st July 2023, over 4 crore taxpayers have already filed their returns. Despite some taxpayers hoping for an extension, it is unlikely that the government will grant any further delays beyond the set date,” said Abhishek Soni CEO and Co-founder Tax2win.
Understanding the Financial Impact and Late Fee Structure
To prevent last-minute blunders, it is strongly advised to submit ITRs on time. “The consequences of missing the deadline could result in penalties. Taxpayers who fail to file their ITR by the deadline may incur a penalty of ₹5,000 under Section 234F. However, for individuals with an income of less than ₹5 lakh, the penalty will be a reduced amount of ₹1,000,” said Abhishek Soni. “If an earning individual misses filing ITR within the given due date, he or she would be able to do so by paying the late fee,” said tax and investment expert Balwant Jain. ‘If the yearly taxable income is at least 5 lakh, the late fee would be 5,000; if it is less than 5 lakh, the late cost would be 1,000.’
Tax Expert Warns of Imprisonment
Balwant Jain, a tax expert based in Mumbai, stated that the Indian government has the authority to bring legal action against salaried people who failed to file an ITR by December 31, 2023. “Current income tax rules prescribe a minimum sentence of 6 months of imprisonment and a maximum sentence of 7 years of imprisonment. It is not that the department can launch prosecution against you in each and every instance of failure to file the ITR. The income department can launch prosecution only in case the amount of tax sought to be avoided exceeds ₹10,000,” Balwant Jain said. According to CBDT chairperson Nitin Gupta, more than four crore income tax returns (ITRs) have already been submitted for the fiscal year 2022–2023, and 7% of those are from new or first-time filers. More than half of these ITRs, according to him, have already been processed, resulting in 80 lakh refunds. The chairman was addressing during a celebration held here on July 24 to commemorate the 164th Income Tax Day.
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