ITR filing for AY 2022-23: The due date for income tax return (ITR) filing for the financial year 2021-22 or for the assessment year 2022-23 is fast approaching as ITR filing due date is 31st July 2022. So, earning individual is advised to file is ITR within the given due date. However, in case a taxpayer misses to file its income tax return by the given due date, he or she will be able to file its ITR for FY22 or AY23 with a late fee up to ₹5,000. However, in case a taxpayer misses to file is ITR by given last date of 31st December 2022, then in that case the income tax department has the rights to initiate prosecution proceedings under certain conditions.
Speaking on the ITR filing with late fee provision, Mumbai-based tax and investment expert Balwant Jain said, "If an earning individual misses to file ITR by the given due date of 31st July 2022, it can still file its income tax return by given ITR last date of 31st December 2022 but the taxpayer will have to pay ₹5,000 late fee at the time of ITR filing if its taxable annual income is more than ₹5 lakh. In case, one's taxable income is less than ₹5 lakh, in that case the late fee would come down to ₹1,000."
On what if a taxpayer misses to file its ITR within the given ITR filing last date, Balwant Jain replied, "Failing to file ITR by given last date, the income tax department may levy penalty of 50 per cent to 200 per cent on taxpayer's actual income tax outgo, in addition to the tax and interest liability till the date a taxpayer files its ITR in response to the income tax notice from the department."
Balwant Jain went on to add that the Government of India (GoI) has powers to launch prosecution against the taxpayer who has failed to file ITR by last date despite having income tax liability.
"The present income tax rules prescribe a minimum sentence of 6 months of imprisonment and a maximum sentence of 7 years of imprisonment. It is not that the department can launch prosecution against you in each and every instance of failure to file the ITR. The income department can launch prosecution only in case the amount of tax sought to be avoided exceeds ₹10,000," Balwant Jain concluded.
