6 Things That Could Go Wrong If You Miss Income Tax Return Deadline

The Buyt Desk

The last date for filing Income Tax Return for the financial year 2020-21 is 31st December 2021. Usually, the last date is around the end of July but due to COVID concerns, the government extended the IT return deadline. You should file your return by the given deadline or be prepared to shell out money from your wallet. The late filers will have to pay late fees and penal interest.

Here is how missing the Income tax return deadline will impact you –

Late Fees – As per Section 234F of the Income Tax Act 1961, you will file a late return along with a late fee. This late fee would be Rs 1000 for individuals with an income less than Rs 5 Lakhs and up to Rs 10,000 for individuals with an income of more than Rs 5 Lakhs.
Penal Interest – A delay of a single day will also attract a penal interest of 1% on the unpaid tax.
Delay in Refunds – If you file a late return and there is a pending refund then this payment will be delayed too.
Short Window to File Your Return – You will have to file your IT return by 31st March 2022 as after this the window of return filing for FY 2020-21 will be permanently closed. Only if the assessing officer demands some explanation or changes in the return will you be allowed to reopen your return and file it again.
Lesser time for Correcting Mistake – If you erroneously fill in any wrong details you have the option of filing a revised return and correcting the mistake. But when you miss the deadline and file a late return the time you get to correct your mistake will be shorter too.
Notice From Income Tax – If you miss the final date of 31st March 2022 you will not be able to file a return for the FY 2020-21. The income tax department can send you notice as per Section 142 of Income Tax Act 1961 for not filing your return. There could be harsh punishment of imprisonment for evasion of income tax discrepancy in your income earned and tax paid.