The deadline for filing the income tax return (RTI) has been set for July 31, 2022 by the tax department (IT department). It is mandatory to deposit the ITR for people with an annual income above Rs 2.5 lakh. However, sometimes a taxpayer may miss the July 31 deadline.
In this case, they can file a late ITR until December 31, 2022. A late ITR is filed after the due date, while a regular ITR is filed before the due date.
The late ITR also attracts a penalty. If the annual income is less than Rs 5 lakh per annum, Rs 1,000 has to be paid with the late ITR. If the income exceeds Rs 5 lakh per year, the amount of the fine is Rs 5,000.
Read also | RIR 2021-22: Penalties you may have to pay if you miss the July 31 deadline
In addition to the penalty, other fees will also apply if you file the ITR late:
Interest on unpaid tax
If there is an unpaid income tax after July 31, 2022, 1% interest is applicable on the unpaid amount. This is regardless of whether the tax amount was deposited in error or not.
The taxpayer will have to file the unpaid tax with interest retroactively from July 31.
Additionally, if the unpaid tax is paid on or after the 5th of any month, the full month’s interest will have to be paid.
Taxpayers can reduce their liability by offsetting losses from business operations or by selling assets with other income. Losses can be carried forward to subsequent years.
However, it is not applicable in the event of a late RTI. Losses can only be carried forward if the ITR is filed by July 31, 2022.
Mandatory transactions to mention in the ITR
Here are some transactions that must be mentioned in the ITR: