Penalty for Late Filing of Income Tax Return for AY 2021-22

The Income Tax Return (ITR) is a document that all taxpayers must submit to the Income Tax Department.

The ITR form, known as Form 16, is being updated from time to time to include many new features to help you file your income tax return efficiently and quickly.

While it is recommended that you submit your ITR before the deadline, what happens if you inadvertently miss the deadline? 

According to section 234F, there is a penalty for filing returns late or filing them after the deadline. Here you will learn about penalty for late filing of income tax return for AY 2021-22.

Income tax returns for each fiscal year can be filed using this form which can be downloaded from the Income Tax Department’s official website 

http://www.incometaxindia.gov.in/. After downloading, fill in all the relevant details as per the requirements and send it by registered mail or courier to the given address within 45 days from the due date stated in the notification issued by the Income Tax Department.

Indian taxpayers are required to file an Income Tax Return (ITR) in a timely manner. Failure to file an ITR can result in significant fines and interest. Employers may also suspend or terminate employment for late submission of an ITR. Let’s learn in detail.

How Much Is Penalty for Late Tax Return

If the ITR is filed after December 2023 but before March 2023, the late fee of up to Rs.5,000 can be charged up to Rs 10,000. Also, if your income exceeds the taxable limit, you can file an ITR after the deadline without penalty. But, of course, there are exceptions.

Interest Payment

Section 234A requires a taxpayer who has not filed an ITR by the due date to pay 1% per month or part of a month on the amount of unpaid tax.

Interest is obliged to be paid If the tax remains unpaid, the ITR cannot be filed. Interest calculation begins after the tax return due date, which is generally July 31 of a given assessment year. Prolonged tax filing delays increase the overall penalty for late filing ITRs as more interest accumulates.

Penalties under Section 271H

Any person who fails to file a TCS or TDS return by the deadline will be subject to a penalty of Rs. Rs.10,000 to Rs.1,00,000 in addition to fines for late filing of ITR under Section 234E. Section 234E fine is Rs. 200 daily until TCS or TDS is paid.

How Late Can I File My Taxes 2022

The last day to file your Income Tax Return (ITR) for the fiscal year 2021-22 (2022-23) is July 31, 2022. If individual taxpayers miss this deadline, they will have the opportunity to file their income tax returns. However, lately, you will incur some costs associated with filing the ITR.

How Many Tax Years Can You Miss

There are no guidelines or deductions issued by the IRS that allow you to skip a year’s tax returns.

So, while you technically do not have the right to skip filing your tax returns, they won’t knock on your door if you miss the deadline to file your tax returns this year. Unpaid charges and undeclared charges will occur until they are cleared. The sooner you get it, the sooner you can prevent bills from piling up.

The IRS has no statute of limitations on lost or late tax returns. If you haven’t filed your taxes in the last 2, 3, 10, 20, or 50 years, the IRS will accept your form as soon as you’re ready to file.

How Can I File My Last 3 Years Tax Return in India

Follow the steps below to submit your prior year’s income tax returns.

1. First, go to the official website for e- filing income tax, incometaxindiaefiling.gov.in, or tap the link – https://www.incometaxindiaefiling.gov.in/. 

2. After clicking on the e- filing income tax Filing website, you will be required to register a permanent account number that will serve as your User ID for future reference.

3. Then go to Income tax returns in the download menu and select your fiscal year. Next, you need to select the income tax return that applies to you. You can also exit the portal by simply clicking the Quick e-fill ITR link.

4. Then you have to fill out this form. Alternatively, click the Quick e-fill ITR link to automatically fill out the form.

 Next, you must calculate the amount of tax you must pay by clicking the Calculate Taxes button. You will then need to pay your income tax return and fill in your challan details.

6. Then click Validate to check all the information you entered. The file must then be saved, and finally, it must be uploaded. Now, you can save the file for later use.

7. You have a digital form to sign, you can sign the form on paper, or you can select Yes if you have a digital signature or No if you do not.

8. After completing this process, you will be able to download your IT Return Receipt (ITR-V). The ITR-V form must then be printed, signed in blue ink, and sent to the income tax department within 120 days.

Penalty for Late Filing of Income Tax Return for Individual

If the ITR is filed after December 2023 but before March 2023, the late fee of up to Rs.5,000 can be charged up to Rs 10,000. Also, if your income exceeds the taxable limit, you can file an ITR after the deadline without penalty. But, of course, there are exceptions.

How Can I Get the IRS to Waive a Penalty

The IRS may waive administrative penalties under certain conditions. The most common administrative exemption is First-time Penalty Abatement (FTA).

FTAs can reduce filing, payment, and filing defaults during the tax period if you have a clean compliance history in the last three years. FTAs are available for Form 1040, Form 1120, and payroll and pass-through unit penalties.

FTA is the simplest of all sanctions reliefs. Claims can be made by calling the toll-free number listed on your IRS filing, or accountants can call a dedicated accountant hotline or compliance unit (if applicable) to apply for an FTA and pay fines.

What Is the Underpayment Penalty Rate for 2022

The IRS underpayment penalty for quarterly non-payment of taxes is variable and changes quarterly. For 2022, the IRS can impose a 3% penalty based on current interest rates, or you can use any tax penalty calculator. This underpayment penalty calculator will calculate your estimated tax penalty so you can determine whether you owe the IRS.

FAQs: Penalty for Late Filing of Income Tax Return for AY 2021-22

Can I file IT return for AY 2021/22 now?

Subsequent income tax returns can be filed three months before each tax year. The 2021-22 ITR can be submitted for late registration until December 31, 2022.

Will I get penalized for filing taxes late if I don’t owe?

There are no penalties for filing a tax return after the tax refund deadline has passed. If you have not filed your taxes and have not paid them, file them as soon as possible and pay as much as possible to reduce fines and interest.

Closing Up

Now as you know about penalty for late filing of income tax return for AY 2021-22. Taxpayers must file their ITRs by the deadline to avoid adverse consequences and penalties for late filing of income tax returns. Late submissions should clarify the penalties required and try to file the next ITR within the due date.

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