Lacking this significant ITR submitting step can land you minimal 3 years in jail

The final date for submitting Earnings Tax Return (ITR) for the Evaluation Yr 2021-22 for particular person taxpayers was on December 31, 2021. The due date for ITR submitting for the yr was prolonged many instances taxpayers confronted points with Earnings-Tax Division’s new e-filing portal.

The Central Bureau of Direct Taxes (CBDT) just lately prolonged the ITR deadline for audit instances until March 15, 2021. However the extension applies principally to companies.

Nonetheless, those that missed the deadline can nonetheless file belated ITR till March 31, 2022. Part 139(4) of the Earnings Tax (I-T) Act permits taxpayers to file belated ITR and the final date for identical is March 31, 2022. However there’s a penalty for belated ITR submitting below Part 234F of the I-T Act. This penalty depends upon the earnings tax slab that the taxpayer falls in.

Below Part 234F of the I-T Act, a penalty is utilized for not submitting the ITR throughout the stipulated due date. Late price or penalty depends upon the taxpayer’s earnings. Belated returns have to be filed earlier than the top of the evaluation yr or earlier than the completion of the evaluation, whichever is earlier. For these assessees whose taxable earnings doesn’t exceed Rs 5 lakh, a penalty of Rs 1,000 is charged and Rs 5,000 for others. It’s to be famous that another taxpayers are exempt from paying penalties even when they file ITR after the due date. These taxpayers whose gross earnings doesn’t exceed the exemption restrict don’t have to pay a late price in case they missed the due date of December 31.

Whereas the I-T Act supplies for belated submitting however failing to take action entails jail time from a minimal of three years to a most of seven years. The I-T Division could impose a nice of fifty% to 200% on taxpayer’s earnings tax outgo, over and above tax and curiosity legal responsibility due until the date taxpayer information the ITR after getting a discover from the federal government.

The federal government could launch authorized proceedings in opposition to a taxpayer who hasn’t filed ITR even after the final date regardless of having tax legal responsibility over Rs 10,000.

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