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.