What Happens If You Miss the ITR Filing Deadline of July 31

Filing an ITR is essential for maintaining a transparent and efficient tax system, ensuring compliance with tax laws, and facilitating revenue generation for the government to support public welfare and development. It also helps individuals claim rightful tax benefits and establish their financial credibility.

The income tax return filing deadline is generally set for individuals and businesses on a specific date, often around the end of July or August each year, for the previous financial year’s income. This year, the due date for income tax return (ITR) filing date is 31st July 2023.

If you miss to file your income tax return on July 31, you may be liable to pay a penalty. The penalty amount depends on various factors, such as the delay in filing and the total income earned during the financial year, it may be ₹5,000 if the annual taxable income is 5 lakh or more, and ₹1,000 if the taxable income is less than 5 lakh.  Apart from the penalty, if you owe any income tax for the financial year and miss the filing deadline, you will be charged penal interest on the outstanding tax amount. The interest is calculated from the due date of filing until the date you actually file your return. In extreme cases, the tax authorities may take legal action against you for non-compliance, which may include prosecution or other legal proceedings.

According to Indian tax laws, you must file an income tax return if your income exceeds the basic exemption limit. Delays in filing ITR will not only result in late filing fees but will also limit your chances of getting a loan or a travel visa. If you are eligible for an income tax refund, the delay in filing your return may result in a delay in receiving the refund. Failure to file income tax returns on time may result in the loss of the ability to carry forward certain types of losses, such as capital losses or business losses, to offset against future gains.

An Income Tax Consultant in Kochi, Kerala brings a deep understanding of the Income tax laws and regulations, ensuring that your tax returns are accurate, compliant, and submitted on time. We can help you identify eligible deductions and exemptions, optimize your tax planning and minimize your tax liabilities.