Delay in Filing ITR? Get all the latest updates and consequences
Till further notice, the taxpayers need to file their tax return within 31st July of their financial year as per Government rule.
The Government provides a window of 4 months for their taxpayers to assess their income details and file the ITR every Assessment Year (A.Y.) which starts from 1st April to 31st July.
Filing ITR taxes a few minutes, so every citizen should file ITR on their due date and file the returns, or else they will need to face the consequences.
This article gives a clear view of all the consequences for Delay in filing ITR.
Let us have a look at the latest updates and dates
As per the latest update issued by CBDT on 9th September 21, extending the timelines for tax compliances for the year 2021-2022.
- ITR Filing due to date extension
| ITR Filing | Due Date (Extended) |
| Taxpayer not covered under Audit | 30th September- 31st December 2021 |
| Tax Audit | 15th February 2022 |
| Transfer Pricing | 28th February 2022 |
| Revised Return | 31st December- 31st March |
- Furnish Audit Report
| Audit Report | Date |
| Furnish Audit Report | 15th January 2022 |
| Transfer Pricing | 31st January 2022 |
What is the due date for filing ITR for 2021-2022?
For 2021-2022, the due date to file ITR under Section 139(1) was 31st July 2021. But the Income Tax Department has given extension for all the taxpayers.
Many taxpayers assume that paying tax within the due date is just enough, but filing ITR is equally essential, and Delay in filing ITR has severe consequences.
From the year 2017-2018, a penalty fee is also applicable for Delay in filing ITR or missing the due date.
| Sl | Subject | Previous Date | Extended Date |
| 1 | ITR filing for taxpayers not eligible for Audit | 31st July 2021 | 31st December 2021 |
| 2 | ITR filing for taxpayers under tax audit | 31st October 2021 | 15th February 2021 |
| 3 | ITR Filing under transfer pricing | 30th November 2021 | 28th February 2021 |
| 4 | Filing Revised ITR | 31st December 2021 | 31st March 2022 |
Penalty for Delay in Filing ITR
The penalty for Delay in filing ITR is effective from 2017-2018, and the late fine falls under Section 234F.
The maximum penalty for the Delay is 10,000/- and hence filing ITR after 30th September- The due date but before 31st December, the penalty will be 5000/-
*Small Relaxation
The Government has stated that small taxpayers whose income is below five lakhs are levied with a maximum penalty of 1000/-.
In a Nutshell
| Late Filing Penalty Structure | ||
| Date of Filing | Net Income Below 5 Lakhs | Net Income above 5 Lakhs |
| Till 31st September 2021 | 0/- | 0/- |
| Between 1st October to 31st December | 1,000/- | 5,000/- |
| Between 1st January to 31st January | 1,000/- | 10,000/- |
Consequences of Delay in filing ITR
The penalty is not only the consequence levied by the I.T. department, but some additional disadvantages are also applicable-
- Late Refunds
This happens if you are receiving any amount of refund from the Government for excess tax paying. So, it would be best not to fail in filing your return to face a delay in the refunds.
- Applicable Interest on Delay in filing ITR
Under Section 234A, the taxpayers will be charged 1% Interest per month till the date of payment of taxes.
One thing to keep in mind is that ITR cannot be filed unless Taxes are paid. So, the calculations will start from the next failing date after the due date. So, the more dates you fail, the more interest you pay.
Conclusion
You are eligible to file ITR only when you have cleared your taxes. Delay in filing ITR would lead to severe consequences like penalty followed by Late refunds (if any) and Interest on the Delay of filing.
FAQs
- What are the acceptable reasons for filing a late tax return?
Some of the causalities that are acceptable for late filing of ITR are-
- Fire, or any natural disaster
- Death, ailment, or unavoidable circumstances of the taxpayer
- Can I file ITR after the due date?
If the taxpayer misses the due date, then they can file a belated return. But they have to pay the penalty as a consequence.
- How much time does it take for ITR processing?
The entire process after the day of e-verification or the receipt of ITR-V by the CPC takes 30-45 days approx.
- Can I file ITR for the last three years now?
No, one cannot file ITR of the last three years together, but they need to file one by one, and since one has missed the due date, they need to file a ‘Belated Return’ with a penalty.