Income Tax Return Filing: The Income Tax Department has recently revealed that over 4.43 crore income tax returns (ITRs) for the 2020-21 fiscal have been filed. This includes over 11.68 lakh returns filed on December 25. This comprises over 2.41 crore ITR-1 and 1.09 crore ITR-4 getting filed for FY2020-21 (Assessment Year 2021-22) till December 25, 2021. The news was shared by the I-T department on its twitter handle. In this regard, you should note that the extended deadline for filing ITR by individuals ends on December 31, which is on Friday. The original deadline was July 31, 2021. For the 2019-20 fiscal, 5.95 crore ITRs were filed till the extended deadline of January 10, 2021.
“A total of 4,43,17,697 #ITRs have been filed up to 25.12.2021 including 11,68,027 #ITRs having been filed on the day itself,” the I-T department tweeted. The department has been reminding taxpayers to file their returns for FY2020-21 by sending SMSes and emails.
Here is what will happen if you do not file your income tax return or ITR by December 31:
If you are an Indian taxpayer and fail to file your income tax return by the due date of December 31, 2021, as notified by the government, there are several things that may happen to you. However, you should also note that the due date is not same as the last date, and you can still file your ITR by March 31, 2022 under certain conditions. For one, you will lose your right to carry forward any losses that have been incurred during the current year and cannot be set off against the income during the current year.
Additionally, you will also lose the right to get interest on excess tax amount paid by you or on your behalf beyond your tax liability, for the for the period of delay attributed by you. If the taxes paid by you or on your behalf are lower than your gross tax liability, you will have to pay a penalty for the period of delay in submitting your income tax return even if the shortfall has been paid after March 31. You will also have to pay interest for such shortfall.
Submitting your ITR after the due date will also attract a penalty of Rs 5,000 in addition to the above mentioned charges while filing your returns. This is applicable for persons with above Rs 5 lakh income. In case the income is below Rs 5 lakh, the penalty amount is Rs 1,000 as per the government. Therefore, even if you are filing for a non-taxable amount, you still have to pay the penalties.
In case you fail to file your income tax return even after the last date, that is March 31 2022, the I-T department can charge a minimum penalty of 50 per cent of the payable tax amount in addition to all the interest charges and penalties mentioned above. The tax department also has the right to put you behind the bars for a period of three years if the tax to be collected from you exceeds Rs 10,000.
Therefore, keeping all these things in mind, it is advisable for you to file ITR by the due date, that is December 31 to avoid all these situations. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler Forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property / other sources (interest etc). ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and having income from.
(With PTI Inputs)