Income Tax Filing Deadline

Know the Consequences if You Miss the Last Date of Income Tax Filing

Online Legal India LogoBy Online Legal India Published On 06 Apr 2022 Updated On 06 Jan 2023 Category Income Tax

Income Tax Return (ITR) is a form that a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1st April and ending on 31st March of the next year.

Income can be of various forms such as

  • Income from salary

  • Profits and gains from business and profession

  • Income from house property

  • Income from capital gains

  • Income from other sources such as dividend, interest on deposits, royalty income, winning on lottery, etc.

The Income Tax Department has prescribed 7 types of ITR forms - ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and the applicability of the form will depend on the nature and amount of income and the type of taxpayer.

Types of ITR form to file ITR

Income Tax Return (ITR) is a form in which the taxpayers file information about his income earned during (FY) and it is a tax applicable to the income tax department in the AY. Income tax returns also make it easy for taxpayers to calculate their tax liabilities, schedule their tax payments, and seek refunds if they have overpaid.

Before filing the returns, taxpayers must first decide the type of ITR forms they need to complete. ITR forms are solely dependent on the income of taxpayers. There are seven different types of return forms. Let’s break down the fundamentals of each category of   ITR form.

ITR Form 1

ITR-1 more commonly referred to as ‘SAHAJ’ and is an income tax form for salaried individuals. India has most of the salaried people makes ITR-1 one of the most frequented or used forms for filing the ITR.  It is applicable if you:

  • Earn income through salary or pension

  • Earn income from one housing property

  • Do not earn capital gains

  • Do not hold a property abroad

  • Earn only domestic income

  • Earn agriculture income less than INR 5,000

  • Earn income through investments such as fixed deposits

  • Do not earn any windfall income through horse racing or lotteries

ITR Form 2

If you received revenue from the sale of a house or other property, you must file this type of ITR form. Furthermore, if you have earned any international revenue, you must file Form ITR 2. The form is also used for Hindu Undivided Family (HUF) taxpayers.

ITR Form 3

Individuals and HUF taxpayers are also covered by ITR 3. However, this form will be used to file the ITR if your salary falls under the earnings or profits from the profession or business category.

ITR Form 4

Individuals, HUFs, and partnership companies whose revenue includes the following use ITR 4:

  • Business earnings as per provisions of section 44AD and 44AE

  • Professional income under special provisions of section 44ADA

  • Pension or salary

  • Earnings from a single house property except where loss is carried forward

  • Income from other sources excluding lottery or horse race winnings

ITR Form 5

Firms, local authorities, artificial judicial persons, Body of Individuals (BOIs), Co-operative Societies, Limited Liability Partnerships (LLPs), and Association of Persons (AOPs) use ITR 5 to file returns.

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ITR Form 6

Except for those who seek benefits under Section 11 of the Income Tax Act of 1961, any corporation is required to file returns using Form ITR 6. Exemptions under section 11 are available to organisations that derive revenue from land used for religious or charitable purposes. ITR 6 must be submitted electronically.

ITR Form 7

Individuals or companies as described below must file returns using Form ITR 7:

  • Section 139(4A): Individuals earning income from property held for religious or charitable purpose as a trust

  • Section 139(4B): Political parties whose income exceeds non-taxable limits

  • Section 139(4C): An institution or association under section 10(23A), medical or educational institution, scientific research association, news agency, an institution under section 10(23B)

  • Section 139(4D): Institutions, such as universities or colleges whose income returns or losses are not needed as per the provision of this section must file returns using Form ITR 7.

  • Section 139(4E): Must be filed by every business trust that is not required to provide a return of income or loss under other provisions of this section

  • Section 139(4F): Investment funds as per section 115UB must file returns under this section

Online Income tax filing

An income tax return (ITR) filing doesn’t have to be a worry. You don’t need to take help from an expert or continuously worry about deadlines. Today we can file taxes online. The process of filing taxes online is called E-filing. It is quite a simple task and E-filling can be done in just a few minutes from the comfort of your home or office.

As per Income Tax Act, 1961 every individual with an income (service or business) has to file ITR if they are not from exempt categories. The individual has to declare his/her income, expenses, tax deductions, investments, taxes, etc. This act makes it mandatory for a taxpayer to file an income tax return under various scenarios. As per the regulations an income tax return is a form filed to report the annual income of a taxpayer. A taxpayer can also claim an income tax refund in case of excess tax payment while claiming tax deductions, etc. The refund process is issued in less than 3 weeks if you are using the online process. It is even faster if you choose direct deposit.

Before you start with ITR filing you must calculate your income as per the income tax law provisions applicable to you. You must account for all different sources of your income like salary, shares, bonds and mutual funds, freelancing, receiving rent from property, and interest income. Then you can claim the deductions such as tax-saving investments under section 80C and so on. You should also account for credit for TDS, TCS, or any advance tax paid by you.

What will happen if you don't file ITR return on time?

The deadline to file income tax return (ITR) for the financial year 2020-21 has been extended twice- first from July 31 to September 30, 2021, and then to December 31, 2021. It is advisable to file your tax return before the due date, i.e., December 31, 2021. However, if for some reason you do not manage to file your ITR before the deadline of December 31, 2021, read on to find out what will happen and what are options available with a taxpayer who wants to file his/her ITR post the deadline.Due to the novel coronavirus pandemic and glitches on the newly launched income tax portal, the government has extended the due date of filing belated ITR to March 31, 2022. A late filing fee will be levied if you file a belated tax return, i.e., after the deadline. Until assessment year (AY) 2017-18, there was no penalty for filing belated income tax returns.

However, this penalty is applicable from AY 2018-19. A new section, section 234F, was inserted by the government into the Income-tax Act 1961.This section was further amended in Budget 2021.The amendment was made as the government has reduced the time limit to file belated ITR by three months. Till FY 2019-20, an individual had an option to file belated ITR till the end of the relevant assessment year, i.e., till March 31. However, in Budget 2021, the government reduced the time limit to file belated ITR by three months, i.e., till December 31. Thus, a consequential amendment was made under section 234F to reduce the penalty levied on belated ITR filing by half.

Further, it is important to note that if you have any unpaid tax liability, then penal interest on the same would be levied, as applicable to your case, if you are filing a belated return. But if no tax is payable, the taxpayer won't be liable to pay this interest solely due to the belated filing of ITR.

How to file a belated ITR?

The process of filing a belated return is the same as filing the return on or before the due date. The main difference would be that while filling the applicable ITR form, you would have to select "Return filed under section 139(4)" in the drop-down menu in the relevant box in the form. Also, remember that if you are filing a belated return for FY 2020-21, then you need to fill the applicable ITRs as notified for FY 2020-21 only and not for any previous or later FY.

Conclusion

ITR is a tax return form used by taxpayers to report their income and assets to the Indian Income Tax Department (Indian Revenue Authorities). It has details related to the taxpayers’ personal and financial data. ITR is essentially a type of self-declaration by the taxpayer of their income, assets and applicable taxes paid. While it is mostly filed in the electronic mode, there is an option for senior citizens to file it manually as well.


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