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ITR: Have you missed the ITR filing deadline of December 31, 2021? Here’s what to do

The deadline for filing the AY2021-22 income tax return (ITR) was December 31, 2021, and over 5.90 crore tax returns were filed before that date.

However, due to difficulties on the tax filing portal and other issues, many taxpayers were unable to file their ITR before the deadline.

There’s no need to be concerned if you haven’t filed your ITR by the deadline because the process can be finished by March 31, 2022, which is the deadline for AY2021-22.

You have to file belated return

An ITR filed after the due date attracts a late fee and is known as a ‘belated return’. The deadline for submitting ITR AY2021-22 is March 31, 2022. Due to problems with the income tax portal and Covid-19, the last date was also extended, as the due date.

Although there are no legal intimations that come along with filing belated returns, the procedure can be costly because you must pay a significant late fee.

Be ready to pay a late fee & lose some benefits

Apart from paying a late fee, people who file their ITR after the deadline would lose certain crucial tax filing benefits.

If taxable income exceeds Rs 5,00,000, anyone who submits ITR beyond the due date would be charged a late fee of Rs 5,000. For those having total taxable income less than Rs 5,00,000, the penalty is Rs 1,000.

There are a number of other important benefits that taxpayers miss out on if they file their ITR after the deadline. For example, they won’t be able to carry forward any losses from the previous year, and they won’t be able to offset current-year revenue.

Simply put, any loss incurred from the business income or capital gains or loss beyond Rs 2 lakh under the house property head, cannot be carried forward to the subsequent year.

Taxpayers should also be aware that if they are entitled to a refund for excess taxes paid during the time of delay, they may not be eligible for interest. Because the delay will be attributed to the taxpayer, this is the case.

What if you miss the final deadline?

If a taxpayer is unable to file ITR by the final deadline of March 31, 2022, the Income Tax Department can charge a minimum penalty that equals 50 percent of the tax which would have been avoided by not filing ITR.

It could also attract a minimum sentence of three years of imprisonment and a maximum of seven years in case the amount of tax sought to be avoided exceeds Rs 10,000.

Can I carry forward losses if I file a belated return?

“As per the Indian income tax laws, losses under any head of income (other than income from house property), can be carried forward only if the tax return is filed within the due date, i.e., July 31 of the relevant AY (unless extended by the government). However, taxpayers can carry forward the loss under the head income from house property, even if the tax return is filed after the due date,” says Surana.