So far there is no doubt that July 31 is the last date to file an income tax return or ITR for the financial year 2021-2022 or for the assessment year 2022-23. If ITR filing is already done and also e-verified then it’s awesome, you don’t have to worry about anything. But if you have not then please read further because we are going to explain what happens when you fail to file your ITR before the deadline of July 31.
What Happens If ITR Filing Is Not Done On Or Before July 31?
If you miss ITR filing on or before July 31 then you can still file it till December 31, 2022. However, there are penalties you will have to bear with other financial risks.
- Penalty criteria is very simple, for taxpayers having annual income up to ₹5 lakhs the penalty is ₹1,000.
- For taxpayers earning more than ₹5 lakh annually, the penalty is ₹5,000.
- On the other hand for the taxpayer whose annual gross income does not exceed the benchmarked exemption limit there is no penalty.
Income Tax India
Income Tax India through the social media platform Twitter provided us with statistical information about ITR filings across the nation.
Their message read, “Over 4.09 crore ITRs filed till 28th July 2022 & more than 36 lakh ITRs filed on 28th July 2022 itself. The due date to file ITR for AY 2022-23 is 31st July 2022.”
Further said, “Please file your ITR now, if not filed as yet. Avoid late fees.”
ITR Filing Last Date Will Get Extended or Not?
Income Tax India provided the info with an indirect coded message, while decoding which Pankaj Mathpal, from Optima Money Managers, said, “In AY 2021-22, the total number of ITRs filed were 6.68 crores whereas a total number of audited ITRs filed by September 2021 was around 5.70 crore. If we look at the total number of ITRs filed by 28th July 2022, there is a big gap of nearly 1.7 crores with the audited number of ITRs filed in the previous fiscal. In case, this big gap remains even after the due date for ITR filing, then the Government of India (GoI) may think of extending the ITR filing due date, otherwise, I don’t find any valid reason for the extension of the due date.”
“The I-T department message reads that the total number of ITRs filed on 28th July is around 36 lakh. And there are three more days left for ITR filing. So, the number is expected to cross 5 crores with ease. As per our previous experiences, a big leap in the ITR filing can be expected in the last two days. If this happens this year again, the ITR numbers we are talking about may go around 5.35 crore to 5.5 crores. If this happens, then in that case chances of ITR filing the last date extension looks bleak”, said Director of Wealth at Transcend Capital, Kartik Jhaveri.
“Only thing that can force the income tax department to extend the ITR filing due date is the income tax portal crash. But, the income tax website is also doing fine to date and very few cases of website crashes have been reported. So, this angle is also looking fine till date. Taxpayers can also take a cure about the government’s mood in regard to ITR filing due date extension as the GoI has been instructing Infosys to remain vigilant about the income tax portal and be prepared for the abrupt rise in traffic when the due date would be about to expire”, said, Jitendra Solanki, SEBI Registered Investment Expert.