Consequences of Late Filing of an ITR; Know Details:

Consequences of Late Filing of an ITR; Know Details The outcome of filing the Income Tax Return (ITR) late is to increase the difficulties for the taxpayer, so taxpayers should anticipate the deadline in order to avoid any difficulties. For example, the last date for e-filing of ITR is July 31, 2024. In case the individual does not submit the tax returns within the stipulated time, he or she would have to pay a fine of Rs.5,000 as imposed by the Income Tax Department. If the individual does file the ITR before December 31st, then after December 31st, the fine will be increased to Rs.10,000 for late filing of an ITR. Other than monetary penalty, individuals must consider other important implications that will arise if there is a delay in filing an ITR. The most notable one is that they will not be able to carry forward losses from business, profession or capital gains if the ITR is filed after the due date. This can have a big impact on reducing tax liability in the future. The delayed filing also means the taxpayer will not be able to claim some tax deductions and exemptions in future assessment years by carrying forward expenses like housing loan interest, donations, etc. The IT department, too, can give legal notice to compulsorily assess the income and levy an additional fine if an individual delays for more than a year. On the other side, if tax is payable based on the drawn ITR, the taxpayer should pay interest on the liabilities concerning such tax. More than the fines and penalties, delinquency of tax payments supposedly prohibits a taxpayer from possible tax deductions and exemptions in years to come. Consequently, every taxpayer should take extra care so that they file their ITRs before the due date to prevent unwanted consequences.