Filing income tax returns online is not only the need of the hour but also helps in staying compliant with Income tax regulations. To file your income tax return online, you need to first go for ITR Registration online. After registration on the ITR portal, log in to your account with the required credentials and file ITR return online within the deadline to avoid any sort of late ITR fees and penalties. Delve into ITR File charges and penalty for late filing ITR with the further blog.
Filing an Income Tax Return (ITR) online is an essential annual return in India. People with income more than the tax exemption limit must file an Income Tax Return within the due date of the financial year. If taxpayers fail or miss the due date then such people have to face penalties under the Income Tax Act 1961.
To file ITR online, you may need to first undergo the ITR registration process online. The blog primarily emphasizes ITR file charges and penalty for late filing ITR.
ITR File Charges & Penalty for Late Filing ITR
Underreporting Income: In case of underreported income, the income tax officer can impose a penalty of around 50% of the tax unpaid.
Apart from the penalties imposed by the IT department, a taxpayer may have to bear some additional consequences or ITR file charges or penalty for filing Income tax returns after the due date.
Incapacitance to Set-Off Losses
- Restriction on Carrying Forward Losses: Losses that take place in categories except house property cannot be carried forward to offset future gains if the income tax return is not filed within the due date.
- Exception for House Property losses: Losses from house property are an exception; these can still be carried forward even if the return is filed after the due date.
Interest Charges for Delayed or Late ITR Filing
The Interest rate charged under Section 234A is 1% per month or part of a month on the tax due, which is applicable until the tax is fully paid. For FY 2023-24, interest starts increasing the day after the filing due date i.e. starting from August 1st, 2024.
This is the reason, it is always advisable to file ITR return before the deadline or due date if you want your tax refund within a short timespan and stay away from late ITR filing penalty.
What is the deadline for Filing ITR for AY 2024-25?
For FY 2024-25, as per Section 139 (1) the deadline for filing Income tax returns (ITR) online is July 31, 2024, until any further extension by the government. If one fails to file ITR online before the deadline, it can lead to legal consequences including a penalty for late filing ITR.
Key due dates for various categories of taxpayer for FY 2023-24;
- ITR filing for taxpayers covered under tax audit (excluding transfer pricing cases) – 31st October 2024
- ITR filing for taxpayers covered under transfer pricing – 30th November 2024
- Due date for revised return/belated return of income for FY 2023-24 – 31st December 2024
- The last date to file online Income Tax Return (ITR) for FY 2023-24 (AY 2024-25) without a late fee is 31st July 2024
What are the consequences of not filing by the due date?
If you fail to file your online Income Tax Return (ITR) by the due date, you may have to face various consequences. Some of the consequences of not filing your ITR by the due date are described below;
- Initiate Prosecution: The Income Tax officer may begin prosecution proceedings against a taxpayer who deliberately fails to file his ITR return online after receiving notices.
- Imprisonment: Due to non-filing, certain ITR filing penalties may be levied including imprisonment for a period of three months to two years and/or a fine. In case, the non-compliance tax amount is higher, the taxpayer may have to undergo imprisonment for an extended period of up to seven (7) years.
Process of ITR registration Online
- Step 1: Visit the official e-Filing Portal and click on the Register button located on the top left side on Homepage.
- Step 2: Enter your PAN details and Validate it. Select YES and click on the ‘Continue’ button.
- Step 3: Enter your basic details i.e. First Name, Middle Name, and Last Name matching your PAN credentials. Select your Gender and Residential Status and then click on ‘Continue’.
- Step 4: Enter a few other details including Mobile Number, Email ID, Postal Address, etc. followed by clicking on ‘Continue’.
- Step 5: Submit OTPs sent on the registered Mobile Number & Email ID separately; click on ‘Continue’.
- Step 6: Verify all entered details. Edit details if entered wrongly and then click on ‘Confirm’.
- Step 7: To verify your entered details, create a password and the same password again to confirm it.
After following the ITR Registration process online properly, you are all set to file your income tax returns online to fulfill your annual return responsibility and avoid fee and penalty for late filing ITR.
ITR return file online is necessary to stay compliant with the Income Tax department and government regulations. Filing ITR online before the due date is necessary to avoid penalty for late filing ITR or other penalties as well. You may have to deal with various consequences of non-filing ITR return online before the deadline i.e. late fees/charges, prosecution, or even imprisonment. Opt for filing ITR returns online within the due date as it will help you avoid unnecessary ITR file charges and penalties associated with late filing or non-filing of Income tax returns.
Consult a financial expert to file your ITR return online on or before the due date to keep penalty or late ITR file charges at bay.
FAQs
Q1: How to file an income tax return (ITR)?
With the advent of digitization, filing ITR has become so easier. All you need to do is just ITR Registration online and login to ITR eFiling Portal to file your ITR within minutes. Filing Income tax returns within or before the due date for Assessment year to avoid ITR file charges or penalty specified.
Q2: What is the basic exemption limit for ITR filing online?
According to the new Tax regime, the basic exemption limit for individuals below the age of 60 years is Rs. 3 Lakhs. While in the old tax regime, the exemption limit was Rs 2.5 lakh.
Q3: What are the prerequisites for registering on the eFiling portal as an individual?
For ITR Registration online on eFiling portal, one must have certain information including a valid PAN, Mobile Number, Current Residential Address, Date of Birth, and Email Address.
Q4: What are the prerequisites for ITR Registration online as a company?
For registering on the ITR portal as a company, it is required to have a valid PAN of the company and also a registered DSC of Principal Contact. The PAN of the Principal Contact should also be registered on the e-filing portal.
Q5: What is the benefit of the basic exemption limit?
When it comes to the basic exemption limit, there will be no liabilities for people whose income falls below this limit.