Penalty on Belated Income Tax Return for AY 2021-22: Today (December 31, 2021) is the last day to file Income Tax Return (ITR) for Assessment Year 2021-22. The Income Tax Department had earlier extended the due dates after acknowledging difficulties faced by taxpayers and other stakeholders in the filing of Income Tax Returns (ITR) and various reports of audit for the Assessment Year 2021-22. The due dates were first extended to September 30 and later to December 31, 2021.
It is important for all taxpayers to file ITR by today, failing which they will have to pay a penalty for late filing to the tax department.
Cost of not filing ITR before due date
The last date for filing of belated ITR filing for AY 2021-22 is 31st March 2022.
According to the Income Tax Rules under Section 234F, the penalty for belated ITR could be up to Rs 10,000.
However, for taxpayers whose total income is not more than Rs 5 lakh in a financial year, the maximum penalty for the delay is Rs 1000.
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Taxpayers also have to pay penal interest on any unpaid tax liability if filing belated ITR.
Belated ITR filers cannot carry forward losses under any head of income (other than income from house property). This facility is available only when the ITR is filed within the due date. However, loss under the head of income from house property can be carry forwarded.
Over 5.5 crore Income Tax Returns for AY 2021-22 were filed till 11.30 am on 31st December 2021, according to the Income Tax Department.