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The Income Tax Return, or ITR, is a form that shows your gross taxable income for a certain fiscal year.
The last date for filing ITR is 31 July of the next fiscal year. (Unslapsh/Representative Image)
Income tax is extremely vital to a country’s growth. It is the primary source of revenue for the government and the funds are used to pay for salaries, welfare programs, government projects, defence, and other purposes. To ensure that every taxable entity pays its dues to the government, taxpayers must file Income Tax Returns (ITR) together with the tax amount. But, what is ITR and what happens if a person didn’t file it within the given period?
The Income Tax Return, or ITR, is a form that shows your gross taxable income for a certain fiscal year. Taxpayers use the form to formally disclose their income, deductions, exemptions, and taxes paid. As a result, it determines your net income tax liability for a given financial year. The due date for filing income tax returns for individuals not liable to tax audit is July 31 of the next financial year.
What If You Don’t File ITR?
Well, it could have major consequences such as a Penalty. If you do not file your ITR by the due date, you may be charged a Rs 5,000 late fee under Section 234F. If your yearly revenue is less than Rs 5 lakh, the late costs are limited to Rs 1000.
As per Section 234A, if you don’t pay taxes, you will be required to pay 1 per cent interest each month on the outstanding tax amount. This interest is calculated from the day you file your return for the relevant financial year until the due date.
Those whose income tax liability exceeds Rs. 25,000 can face harsh imprisonment for a minimum of 6 months and up to 7 years, as well as a fine. If it is less than Rs 25,000, it could result in rigorous imprisonment for a minimum of three months and a maximum of two years, as well as a fine.
If you file your income tax return before or on the due date, you will be permitted to carry forward losses to the following years. You can use such losses to offset future revenue. If you miss the deadline, you will be unable to carry forward your losses.
The proposed income tax slabs under the new tax regime for FY 2025-26 are as follows: Rs 0- Rs 4 lakh – Nil tax, Rs 4 lakh and Rs 8 lakh – 5 per cent, Rs 8 lakh and Rs 12 lakh – 10 per cent, Rs 12 lakh and Rs 16 lakh – 15 per cent, Rs 16 lakh and Rs 20 lakh – 20 per cent, Rs 20 lakh and Rs 24 lakh – 25 per cent, and Rs 24 lakh or over – 30 per cent.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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