The last date for filing the Income Tax Return (ITR) 2023 is today. With just a few hours left for filing the ITR, it is important to know the consequences of missing the deadline.
Individuals who fail to file ITR today will face the following consequences:
1. ITR late filing fee.
2. Penal interest.
3. Delayed refund.
Consequences of filing ITR 2023 after last date
ITR late filing fee
Though those who miss today’s deadline can file a belated ITR, whose last date is December 31, the taxpayers have to pay a late filing fee.
Depending on the annual income, the late filing fee varies. For an individual whose total income in a financial year does not exceed Rs 5 lakh, it is Rs 1000, and for those whose income exceeds Rs 5 lakh, it is Rs 5000.
Penal interest
Apart from the late fee, taxpayers who opt for a belated ITR have to pay penal interest on the tax amount due.
As per the Income Tax Act, the rate of interest is one percent per month.
Delayed refund
Filing ITR is the only way of claiming a refund of the excess taxes deducted. Late filing of the ITR will also result in delayed refund.
In other words, late filing will result in late processing, which will result in delayed refund, ITR late filing fee obligation, and imposition of penal interest.
Top 10 mistakes to avoid while filing ITR
Apart from the consequences of filing a late ITR, taxpayers need to know the top 10 mistakes to avoid while filing ITR online. Though many individuals seek professional help to file their ITRs, some mistakes may still occur due to the overwhelming process for average taxpayers.
Some of these mistakes include:
1. Using the wrong ITR form.
2. Providing incorrect personal details.
3. Selecting the wrong assessment year.
4. Providing incomplete or incorrect bank details.
5. Not filing on time.
6. Incorrect TDS details.
7. Not disclosing all sources of income.
8. Not selecting the right deduction claims.
9. Forgetting to e-verify the ITR.
10. Waiting until the last minute of ITR filing.
As today is the last date for filing ITR 2023, only a few hours are left for it. It is advisable to file it as soon as possible.
