For the last few days, taxpayers from all walks of life have been urging the Government to extend the Income Tax Return (ITR) filing due date for AY 2022-23. The last date to file ITR is 31st July.
More than 22,000 tweets with #Extend_Due_Date_Immediately have been shared on Twitter. However, there is no indication from the Government till now on ITR filing last date extension.
According to the Income Tax Department, more than 3.4 crore returns have been filed till today. As on 27th July 2022, more than 3.4 crore returns were filed and 2.7 crore ITRs were verified, according to the official website of the Income Tax department. Going by the total number of ITRs filed last year, nearly 2.5 crore tax returns were yet to be filed by July 31.
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“Over 3.4 crore ITRs filed till 26th July, 2022 & about 30 lakh ITRs filed on 26th July, 2022 itself. The due date to file ITR for AY 2022-23 is 31st July, 2022,” the Tax Department had tweeted on Monday while urging taxpayers to file their returns at the earliest.
Last week (July 23), Union Revenue Secretary Tarun Bajaj told FE that the Government had no plans to extend the last date for filing ITRs as it was expected that most of the returns would be filed by the last date.
Considering that the chances of due date extension are less, it would be better for taxpayers to file their returns on time and avoid filing belated ITR.
While taxpayers are allowed to file their returns for AY 2022-23 (FY 2021-22) till December 31, 2022, they need to pay a fine of up to Rs 5000 for filing ITR after July 31. Not only the penalty, but late filing also results in delayed disbursement of the income tax refund by the Income tax department and 1% interest on the outstanding tax amount.
Tax experts say that belated ITR filing can cost a taxpayer dearly. (Know how to file ITR without Form 16)
“You must avoid delaying ITR filing beyond the due date as it may cost you dearly. For late filers with up to Rs 5 lakh income, the penalty is Rs 1,000 while the ones with an income of more than Rs 5 lakh are fined Rs 5,000,” said Archit Gupta, Founder & CEO, Clear (formerly Cleartax).
“Besides the late fee, the taxpayer is liable to pay interest at 1% per month for the outstanding tax amount. Late filers do not get the benefit to carry forward losses like capital losses, business losses, etc to set off with the future incomes,” he added.