ITR Filing Last Date FY 2021-22 (AY 2022-23) – Income Tax Return Due Date
It’s almost time to submit your income tax return (ITR) for the fiscal year 2021–2022 (FY22). For salaried taxpayers and non-auditable situations, the yearly ITR is due on July 31.
But for all those who failed to file their taxes by July 31, 2022, may still do so. And this comes with a catch as such taxpayers will be subject to a fine. Other expenses related to filing ITRs late or after due date would also exist.
The last day to file an ITR for the AY 2022–2023 for taxpayers whose accounts do not require auditing was July 31, 2022 as mentioned before. By the deadline, more than 5 crore returns had been submitted. Some taxpayers could still have forgotten to file their returns, though. They may now submit late ITRs till December 31, 2022. But what are the consequences of filing belated return, for this refer below.
Although an ITR may be submitted after the deadline has passed, late filing charge may be assessed. The costs for being late will be Rs 5,000 if the person’s annual income is beyond Rs 5 lakh. The cost for being late will not be easy as it is Rs 1,000 if the annual income is less than Rs 5 lakh.
The government had stated earlier in the month that there were problems with the e-filing platform for taxpayers. It stated in a tweet that proactive actions were being taken.
Why Should I File my ITR Before Deadline?
Preparation and filing of ITR is tiresome but it is the duty of a responsible citizen as this contribution can help them make a contribution to the development of the economy and country.
Some of the benefits you can derive from filing the ITR before due date would be as follows:
1. Provides adequate time for preparation
You might need to gather a number of papers from various sources in order to file your ITR. For instance, from your bank: interest certificates, loan repayment statements, TDS certificates; from your employer: Form 26AS; from your broker or mutual fund house: information on capital gains achieved on your equity or debt investments; and more. And once you have gathered all of this information, you must give it to your tax advisor or Chartered Accountant (CA) so that they can accurately determine your tax due. Starting early can help you minimise last-minute stress because this might take some time. The likelihood of mistakes would be decreased since your tax consultant/CA could devote more time to your case.
2. Permits losses to be carried forward and offset
Let’s say that when calculating your overall revenue, you had a capital loss or a loss from your business or profession. If you have not submitted the ITR by the deadline, this will be prohibited from being carried forward and offset against future gains in the following assessment years. File your ITR early in advance of the deadline if you want to take advantage of the “carry forward and set off of losses” in following assessment years.
3. You stay clear of late fees and interest
ITRs that are submitted after the deadline, or “belated returns,” are subject to interest and penalties. According to Section 234A of the Income-Tax Act of 1961, you are responsible for paying interest on the unpaid tax at a rate of 1 percent per month or portion thereof up until the ITR is filed. In addition, a charge of up to Rs 10,000 is required under Section 234F of the Act, depending on your overall income and the date you filed your return.
Additionally, you won’t be eligible for interest on any refunds, which is 0.5 percent each month or portion of a month on the return amount, according to Section 244A of the Act.
4. Speedier refunds
If you are certain that you are eligible for a tax refund, submit your ITR well in advance of the deadline for a quicker reimbursement. If you submit your ITR just before the deadline, the tax refund may be postponed later owing to increased workload at the tax department’s end.
Don’t overlook the opportunity cost either. If your tax return is a sizable sum, you may invest it right away and profit. The longer you wait, the more interest that may be collected on the sum is lost.
5. Quicker loan, credit card, and visa application processing
ITRs are used to demonstrate income made over the course of a fiscal year. It is one of the essential documents you must present when applying for loans, credit cards, visas, etc., without which the application may not be processed. Therefore, submit your ITR on time if you want to apply for a loan or a visa soon.Please be aware that, in accordance with Section 244A, if the amount of your refund exceeds 10% of the tax you paid, you will be charged interest at a rate of 0.5% per month, or part of a month, on the amount of your refund. If you submit the returns after the deadline, you will forfeit this advantage.
6. Enables purchasing a greater life insurance policy
Every family’s main source of income has high-quality life insurance policy. However, not all insurers allow for larger insurance coverage of Rs. 50 lakh or more without supplying ITRs from the previous several tax years.
7. Quicker return processing
The tax filing portal server may operate slowly as the ITR filing deadline draws near because of numerous server queries. This might result in a technical issue with submitting returns. Starting early makes sense in order to prevent the unpleasant experience and the deadline stress.
Consequences of filing Belated Return
The following repercussions will be borne by taxpayers who file late returns:
- It may not be possible to carry forward losses under the head of capital gains, business, and profession.
- Depending on the amount of tax owed, the taxpayer will be required to pay interest at the rate of 1 percent each month under Section 234A.
- Under section 234F, the income tax officer has the authority to impose a late filing penalty of Rs 5,000. However, the fine is only Rs 1,000 if your taxable income is less than Rs 5,00,000.
- Prior to filing the late return, the amount due must be paid.
- If the taxpayer qualifies for a refund, the tax department will pay interest under Section 244A, some of which will be forfeited since the return was now filed late.
GST Rate Hike Implemented and these Essentials Items will get Costlier
You might have to spend more money starting 18th of July 2022 to purchase some things since the GST on them will shortly increase. The government agreed to change the Goods and Services Tax on a variety of goods and services following the 47th GST Council Meeting conducted last month. As a result, starting on July 18, when the new GST rates are slated to take effect, the cost of several everyday necessities will climb. In this regard, it is also important to keep in mind that some things’ costs will decrease.Following the implementation of the revised GST rate, the following list of goods and services will either cost more or less.
Revision of GST Rate: What will be Costlier from Now On?
- Starting on July 18, a GST at a rate of 5% will apply to pre-packaged and pre-labelled retail packs in accordance with the Legal Metrology Act, including pre-packaged, pre-labelled curd, lassi, and butter milk. Previously, the GST did not apply to these commodities.
- The council has announced that an 18% GST will be applied to any fees charged by banks to issue checks (whether loose or in book form).
- Hospital room rent (excluding ICU) over Rs 5000 per day per patient would be taxed at a rate of 5% without ITC up to the amount paid for the room.
- Starting on July 18, a GST of 12% will be applied on maps, charts, and atlases.
- The GST Council also voted to move hotel rooms under Rs 1,000 per day from the current tax exemption category to the 12 percent GST slab.
- The GST Council has suggested changing the inverted duty structure from 12% to 18%, which will result in an increase in the cost of LED lights, fixtures, and lamps.
- Paper knives, Knives with cutting blades, Sharpening tools and blades for them, Spoons, forks, ladles, skimmers, cake servers, and other items are now subject to an 18% GST slab rather than the previous 12% slab.
Revision of GST Rate: What will be Cheaper from Now On?
- When the end user is the Défense forces, some defence equipment imported by private companies or suppliers are excluded from IGST.
- Ropeway transportation of persons and cargo will be more affordable GST rates have been reduced by the GST Council from 18% to 5%.
- Renting a goods carriage with an operator that includes the cost of gasoline in the consideration will now be subject to 12% GST, down from the previous 18%.
- GST rates on products such as splints and other fracture appliances, prosthetic body parts, other appliances that are worn, transported, or implanted in the body to compensate for a defect or impairment, and intraocular lenses have been reduced from 12 to 5 percent.
GST on Online Gaming and Casino
According to reports, the Tuesday meeting of the group of ministers (GoM) on horse racing, casinos, and internet gambling, which has been entrusted with looking at the possibility of imposing a 28% GST on these activities, ended without reaching a decision. As a result, the proposal to impose GST on these services won’t be put into effect just yet.
Today, the cost of all items is going up. And with the GST Rates also taken on a hike by the government, the burden on the common man is increasing. And this not brings in disturbance to the financial stability of a normal Indian household. Government should bring in proper patterns to help the citizens such that they are able to balance the expenses to be incurred.