For taxpayers who fail to file their Income Tax Return (ITR) inside the due date, which was 31 December 2021 for the present fiscal, the revenue tax regulation permits a three-month window to file belated ITR. For the present evaluation year (AY 2021-22), 31 March is the final date to file an ITR and lacking this deadline can spell hassle for taxpayers.
“Belated return may be seen as a final likelihood to voluntarily file ITR. If you miss the due date for submitting a belated return, you lose the chance to voluntarily file ITR and may solely file it in case of scrutiny initiated by the tax division,” mentioned Neeraj Agarwala, companion, Nangia Andersen LLP.
Scrutiny after the belated timeline can come to you below both part 142(1) or 148, defined Poorva Prakash, companion, (*31*) India. “Notice below 142(1) is a normal present trigger discover which is shipped by an assessing officer (AO) when they need taxpayers to file their ITRs,” she said. This typically applies to taxpayers who have income below minimum taxable income threshold but are liable to file ITR as they might have foreign assets or refund to claim. “Notice under section 148 is issued when the AO believes income has escaped assessment (as the ITR is not filed). In this case, penalty can be levied at 50% or can go up to 200% of the total tax payable,” mentioned Prakash.
Interest of 1% monthly on excellent tax below part 234A will get triggered when a taxpayer doesn’t file ITR by the due date. For excellent tax above ₹1 lakh, 234A kicked in after the unique due date of 31 July 2021. “Even if the taxpayer has paid the excellent tax as both self-assessment tax or advance tax however not filed return of revenue, curiosity below 234A will accrue until the time ITR is filed,” mentioned Prakash. This will proceed to accrue submit 31 March additionally until you file a deferred ITR after receiving a present trigger discover from the I-T division.
Prakash mentioned the authorities could even provoke prosecution proceedings if there was no ample trigger for such a non-compliance. Agarwala mentioned “Prosecution below part 276CC may be initiated whereby the taxpayer could also be subjected to a rigorous imprisonment for a time period starting from minimal 3 months to 2 years together with fantastic, relying on the quantity of tax evaded.”
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