News that circulating on Social Media

Taxpayers could not file their returns as the IT server has gone down several times since the last election. Tax advisors and taxpayers were put in a quandary as July 31, 2024, is the last day for filing returns, due to which the CBDT has extended the deadline for filing returns by a month. Now, the returns can be filed till August 31.

The last date to file the return of Income Tax is 31st July. However, the taxpayers could not file their returns as the server of the IT portal went down in the last resort. Due to this, the taxpayers have to suffer, while lakhs of people from all over the country are filing simultaneously, the server problem is created. Once this kind of problem arises, like every year, the salaried employees should file the return keeping in mind that Form 16 will be received in the month.

Key Points to Note

As the tax department cautioned the taxpayers and tax professionals about the fake news of deadline extension. The Tax Department also urged people not to believe in such kind of news from third-party sources until and unless the department doesn’t reveal the extension of the due date news itself. If there will be an extension of the deadline, the department will announce it officially on its official website.

Apart from this, it is mandatory for all taxpayers to file their income tax returns on or before the specified due date, i.e. 31 July. Those who will not file their tax returns, have to bear severe consequences which include penalties and imprisonment to a maximum of 7 years in some cases.

Consequences of Late Submission of Income Tax Returns

If the return is submitted after the due date of submission after the due date of submission of return of income, the following consequences will be applicable. These rules are applicable even if a belated return is submitted within the time limit of 31st December 2024 for FY 2023-24.

1. The assessee will be liable for penal interest under section 234A

It requires the taxpayer to pay interest at 1% for each month or part of a month beginning on the date following the ITR filing due date, which is July 31st.

2. Late Fees

The assessee shall be liable for late filing fees under section 234F from the assessment year 2018-19 onwards. The section levies late filing fees of Rs. 5,000 (for incomes exceeding Rs. 5 lakhs) and Rs. 1,000 (for incomes less than Rs. 5 lakhs) in case of late filing of ITR.

3. Carry forward of Loss

If a return of loss is submitted after the due date, a few losses cannot be carried forward.

4. Non-availability of Income Tax deductions

If a return is submitted belatedly, deduction under the following sections will not be available –

• Sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, and 80-IE (up to the assessment year 2017-18);
• Sections 10A, 10B, 80-IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, 80-IC, 80-ID, 80-IE, 80-JJA, 80-JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB (from the assessment year 2018-19).

5. Tax Evasion

Non-filing of an ITR can be considered tax evasion by tax officials, and you could risk imprisonment for 6 months to 7 years.

Conclusion

ITR filing might be challenging at times if you are new to taxes, but consultants like CAs provide CA-assisted ITR filing services that make the procedure straightforward and comfortable for you. Whether you need help with deductions, exemptions or just an understanding of your taxable income, online or offline services provided by CA can help you obtain precise and maximum tax refunds, you can get help from them.