What is the penalty for late income tax in India?

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The last date for individual taxpayers to file their ITR for Assessment Year 2023-24 (FY 2023-24) is 31 July 2023.If you do not file ITR on time, then you can be fined and apart from this, there can be many problems.

After July 31, no late fee is applicable on income tax returns whose gross income is 0 to 2.5 lakhs, and those whose gross income is 2.5 lakhs to 5 lakhs, the late fee is Rs 1000. Whose gross income is above 5 lakh, his late fee will be 5 thousand

What is the penalty for late filing of income tax return in India? भारत में आयकर रिटर्न देर से दाखिल करने के लिए दंड क्या है?

1. Penalty: Whose gross income is above 5 lakhs, he will be charged 5 thousand late fees, and for those below this, 1000 rupees will be charged, if you do not file your ITR by 31st December 2023, then you can pay a fine of up to 10000 rupees.

2. Late Filing Interest: If you have tax dues by the due date and you fail to file the return, an additional interest of 1% will be charged for every month till the return is filed.Sundar Rajan TK, partner, DVS Advisors, said, “1% interest will be levied till the date of filing the return. After December 31, the taxpayer will have the option to file an updated return only in that case. One tax is due, but 31 Update returns filed by March 2024 will attract an additional tax of 25% and thereafter an additional tax of 50% by December 31, 2024.

 3. Prosecution: Penalties up to 50% could be levied for underreporting of income and upto 200% for misreporting of income. “Non-filing of tax return despite the reminders may result in authorities initiating prosecution procedures with imprisonment ranging from three months to 7 years based on the tax outstanding,” said Sudhakar Sethuraman, Partner, Deloitte India. 

 4. New regime benefit will not apply: Salaried employees cannot opt for the new tax regime, and if they opt for this with the employer, late filing will result in additional tax and interest.

 5. Losses cannot be carried forward:  Certain losses are available for carry forward to future years. Sethuraman said, “This option is not available if returns are not filed on time. Only house property loss can be carried forward for future years.”

6. Delay in refund: Another potential downside of late filing is the possibility of delayed tax refunds, if applicable. Such delays can cause unnecessary financial strain and inconvenience. Additionally, late filers may attract attention from the tax authorities, increasing the likelihood of audits and inquiries into their tax affairs.

There are a few ways to avoid the late filing penalty

1. File your return on time
2. If you are not able to do it in time then you can apply for extension of time to file your returnYou can apply for extension by filing Form 13, which is available on the Income Tax Department website.



It is important to note that late filing penalty is one of the consequences for not filing your income tax return on time. You may also be liable for interest on unpaid taxes, and additional penalties may be imposed if the Income Tax Department finds that you have underreported your income.

To avoid any of these consequences, it is important to file your income tax return on time. If you have any questions about filing deadlines or penalties for late filing, you should consult a tax advisor.

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