Did Not Submit an ITR by July 31? Verify Those Exempt from Penalties

Before the deadline, a record 6.77 crore income tax returns for the assessment year 2022–23 were submitted in India. In spite of this, a significant number of persons failed to submit their ITR before July 31.

Those who failed to submit their ITR by the deadline may still do so, but they will be fined between Rs 1,000 and Rs 5,000. However, it’s important to note that certain people are excluded from paying fines for submitting their ITRs late.

It is crucial to compile all the necessary data in advance if you want to submit your ITR today despite missing the deadline. ITR lateness has several negative effects. For instance, you could need to pay interest on the amount of your income tax.

It’s possible that you won’t be able to deduct some expenses under Chapter VI-A when you file a late ITR. This excludes home property losses, however.

The Income Tax Act does not apply to everyone when it comes to late costs for submitting ITRs beyond the deadline. Individuals are exempt from paying fines for reporting ITRs late if their gross annual income does not exceed the baseline exemption level. Section 234F of the Income Tax Act outlines this exception. However, it must be made clear that if the deadline was missed, you would also be required to pay interest at a rate of 1% per month on the amount of unpaid taxes. This interest will be charged up to the ITR filing deadline. Therefore, the less interest you would have to pay the sooner your ITR is submitted.

A set personal basic exemption ceiling of Rs. 3,000,000 applies to all people under the new income tax system. However, the fundamental exemption threshold varied according to age under the previous tax system. The cap is Rs. 2,50,000 for those under the age of 60, and Rs. 3,00,000 for seniors between the ages of 60 and 80. The baseline exemption level for super elderly persons over 80 is greater, at Rs 5,00,000.