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What Happens If You Miss Due Date For Filing Income Tax Returns?

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Last Updated on May 5, 2023 by Kanakkupillai

As a responsible citizen, it is your duty to file your income tax returns on time. However, sometimes life can get in the way, and you may miss the deadline. This article will discuss what happens if you miss the due date for filing income tax returns and the following consequences.

For the Assessment Year 2023-24 (or the Financial Year 2022-23), the final due date for Income Tax Return Filing (ITR) was December 31, 2023. More than 5 crore ITRs were filed before the due date.

However, many taxpayers could not file their ITRs before the due date, December 31, 2023, due to various reasons, including technical glitches on the Income Tax Department’s official filing portal. The good news is that if you missed the deadline, you have until March 31, 2024, to file your ITR for the AY 2023-24.

If a taxpayer fails to file their ITR before the final deadline of March 31, 2024, the Income Tax Department can levy a minimum penalty equivalent to 50% of the tax that would have been avoided if the person had filed their ITR. If the amount of tax attempted to be evaded exceeds INR 10,000, it may result in a minimum penalty of three years and a maximum punishment of seven years in jail.

Key Takeaways

  1. The due date for filing income tax returns in India is generally 31st July of the assessment year for individuals and 30th September for businesses.
  2. Suppose you miss the due date for filing income tax returns. In that case, you may face several consequences, including late filing fees, interest on tax dues, scrutiny by the Income Tax Department, and delays in receiving refunds.
  3. The Income Tax Department charges a late filing fee of up to Rs.10,000 for individuals who file their tax returns after the due date and a higher fee for taxpayers with higher income levels.
  4. If you have any tax dues, you will be charged interest for every day of delay in filing your income tax returns, currently set at 1% per month or part of the month for individuals.
  5. Filing your income tax returns after the due date may result in a notice for non-disclosure of income or other tax-related issues.
  6. Suppose you file your income tax returns after the due date. In that case, you may lose the ability to claim certain deductions you may have been eligible for earlier, resulting in a higher tax liability.
  7. If you have missed the due date for filing income tax returns, you should file your returns as soon as possible, pay any tax dues, and request an extension under certain circumstances.

Due Date for Filing Income Tax Returns

Before discussing the consequences of missing the due date, it is essential to understand what the due date is. The due date for filing income tax returns is when taxpayers must file their tax returns with the tax authorities. In India, the due date for filing income tax returns is generally 31st July of the assessment year for individuals and 30th September for businesses.

Consequences of Missing the Due Date for Filing Income Tax Returns

If you miss the due date for filing income tax returns, you may face the following consequences:

1) Late Filing Fee

The Income Tax Department charges a late filing fee of up to Rs.10,000 for individuals who file their tax returns after the due date. The fee is higher for taxpayers with higher income levels.

2) Interest on Tax Dues

If you have any tax dues, you will be charged interest for filing income tax returns every day of delay. The interest rate is currently set at 1% per month or part of the month for individuals.

3) Scrutiny by the Income Tax Department

If you file your income tax returns after the due date, there is a higher chance that the Income Tax Department will scrutinize your returns. This scrutiny may result in a notice for non-disclosure of income or other tax-related issues.

4) Ineligibility for Certain Deductions

If you file your income tax returns after the due date, you may lose the ability to claim certain deductions you may have been eligible for earlier. This could result in a higher tax liability for you.

5) Refund Delays

If you are eligible for a refund, filing your income tax returns after the due date may delay receiving your refund. The Income Tax Department may take longer to process your refund application.

ITR filing online

What to Do if You Miss the Due Date for Filing Income Tax Returns?

If you have missed the due date for filing income tax returns, there are still ways to rectify the situation. Here are a few steps you can take:

1) File Your Returns As Soon As Possible – If you have missed the due date for filing income tax returns, the best thing to do is to file your returns as soon as possible. This will help you avoid further penalties and interest charges.

2) Pay Any Tax Dues – If you have any tax dues, pay them immediately. This will help you avoid further interest charges.

3) Request an Extension – In some cases, you may be able to request an extension for filing your income tax returns. However, extensions are only granted under certain circumstances, such as medical emergencies or natural disasters.

Conclusion

In conclusion, missing the due date for filing ITR can have several consequences, including late filing fees, interest on tax dues, scrutiny by the Income Tax Department, and delays in receiving refunds. However, if you act quickly, you may still be able to rectify the situation.

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