If you don’t, you’ll have to deal with the repercussions. It’s an excellent way to submit tax documents on time. However, a belated return must be submitted if an individual’s income tax return is filed beyond the deadline. The Internal Revenue Service gives you a deadline for this as well. However, the fine must also be paid at the same time.
How much will the penalty cost?
First, if we’re talking about the fine, you’ll have to fork out a thousand rupees if your annual income is below five lakh rupees. The fee increases to Rs 5,000 if your annual income is beyond Rs 5,000,000. In addition, you will not qualify for several exemptions and deductions.
Because of this, you will have a greater tax liability. That implies you may expect even greater disappointment from this. The Income Tax Department extends the deadline for submitting late returns from July 31 to December 31. If you still haven’t submitted your income tax return by then, you’ll have to fork up 10,000 rupees. If you want to take advantage of income tax credits and deductions, you need to submit your return by July 31st.
The fine, plus interest, will be due immediately.
If you owe taxes on your income but failed to submit your return by the due date, you must pay interest at the rate of 1 percent each month until you do. There is a penalty of between fifty percent and two hundred percent of the amount of income you underreported if you filed an income tax return. After receiving many warnings, if you still fail to submit your income tax return, you may face three to seven years in jail.
The new tax system will not assist paid individuals if they do not submit tax returns. Under the new system, taxpayers pay no tax on income up to Rs 7 lakh. One big drawback of waiting until the last minute to file your return is that you may have to deal with complications while claiming your tax refund. In tandem with this, the Internal Revenue Service will start paying attention to you. Because of this, you may be the subject of a formal inquiry or investigation.
