Income Tax News: Now that the last month of 2023 has begun, the new year 2024 is only a few weeks away. For some taxpayers, however, filing the Income Tax Return, or ITR, for the fiscal year 2022–2023 is a crucial task that needs to be finished before the new year officially begins. We would like to inform you that the deadline for filing an ITR is December 31st, the last day of the year. The taxpayer may then be subject to a penalty and interest charge if he files an ITR. Thus, please file your ITR as soon as possible if you haven’t already.
Section 234F Penalty
A taxpayer may be subject to a penalty of Rs 5,000 under Section 234F of the Income Tax Act if he files his ITR after the deadline. Nonetheless, taxpayers with less than Rs 5 lakh in income. Their punishment has been lowered to just Rs 1,000. In addition, there is interest assessed for late ITR filing. As per the regulations, taxpayers who file their returns after the deadline are required to pay a one percent interest on the amount of unpaid taxes under section 234A.
Financial Consequences Looming
Taxpayers may suffer significant financial consequences if they fail to file their ITR by the December 31 deadline. This is due to the fact that filing returns after this date will result in both penalties and interest. In spite of this, taxpayers have until March 31, 2026, to file their ITR for this fiscal year, along with any applicable penalty and interest, within the next 24 months. To recoup the tax paid, however, he is unable to submit an amended return. A taxpayer will not be able to file a return for this fiscal year if he misses even the ITR filing deadline. Unless the department sends him a notice to file an ITR.
Section 119 Delay Condonation
If he/she is unable to file an ITR for an urgent reason, he may apply for a section 119 delay condonation. Additionally, he/she can inform the department of the reason for the delay in order to request a chance to file an ITR. In this instance, he/she will be hit with a Rs 10,000 fine plus 1% interest. In addition, a case under Income Tax Act 276 CC may be filed in the event that an ITR is not filed. Thus, in order to avoid potential problems down the road, if you haven’t filed your ITR yet, do so before the deadline.
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