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  • Category: Finance & Money Matters

    Do you know the cost of missing the deadline?

    I hope all the villagers know that today (31st July) is the last day for filling up of the Income Tax Return for the Assessment year 2023-24. The Income Tax Department has not extended the last date of filing returns. So, by any means, the assessees have to file return today.

    But do we know what would happen if we don't file the Income Tax return today?

    If a person misses the deadline, he/she can file a belated return until 31st December, but a late fee will be imposed. A late fee of Rs 5000 will be imposed if the return is furnished after the deadline under Section 139(4) of IT Act. But if an individual's total income does not exceed Rs 5 lakh, the late fee will be Rs 1000.

    In addition to the late fee, any tax amount due will also incur penal interest until it is paid. According to the Income Tax Act, a taxpayer must pay simple interest at the rate of 1% for every month or part of a month, starting from the day immediately following the due date, i.e. 31st July, until the actual date of filing the return. So the longer taxpayers delay the process of filing tax returns, the more interest they incur.

    Missing the deadline can also result in the loss of interest on refunds. If the return is filed within the due date, interest at 0.5% per month is paid from 1st April until the date of refund. But if the return is filed after the due date, the interest on the refund will be computed from the date of filing the return to the date when the refund is granted, excluding the period from 1st April.

    So, if you have not filed the return till now, stop all other work and file it immediately.
  • #27141
    The author is right. Not only IT returns but also any due to government or others should never be postponed according to me. It is better to pay the dues of any even two or three days before the due date to the possible extent. This is good on one way as we could forget to pay on the due date or we could not money to meet out the expenditure on that day etc.,
    Though we agreed to pay our house rent on or before 7th of every month, I used send the money on account on the first day of the month in order to avoid any discrepancies.
    I have seen some persons paying their dues on the last day of the due date, it is good if he or she remembers well and is good if the payment is made from overdraft account so as to avoid interest for such days.

  • #27150
    The author has provided a useful information regarding filing of income tax return by the scheduled date. Many people in their laziness do not file it in time and then unnecessary pay interest and penalties as mentioned in the above post. The best thing in this matter is the one should not wait for the 31st July to arrive and start the text filling process sometime in June itself.

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