ITR filing: The due date for income tax return (ITR) filing for AY 2021-22 is over and now people have chance to file their ITR within the last date of 31st March 2022, losing some benefits like carry forward of losses, interest on the excess tax paid, etc. Apart from this, the income taxpayer will have to pay a late fee as well. However, it should be noted that not all taxpayers, who failed to file their ITR for AY 2021-22 within the due date will have to pay the late fee. According to tax and investment experts, those taxpayers whose taxable income is less than ₹2.50 lakh need not to pay any late fee even though they failed to file their ITR within the given due date of 31st March 2021.
Speaking on the ITR rules in regard to late fee; Mumbai-based tax and investment expert Balwant Jain said, “Late fine is imposed on those taxpayers who have income tax liability. If a person has taxable income below ₹2.50 lakh, there is no income tax liability on such taxpayer, neither in old nor in new tax regime. So, if such earning individuals file their ITR on or before 31st March 2022, the income tax department doesn’t ask for any late fee from such taxpayers.”
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Explaining the late fee provisions in regard to ITR filing; Kartik Jhaveri, Manager — Wealth at Transcend Capital said, “A taxpayer, who failed to file its ITR within the given ITR due date i.e. 31st December 2021, is liable for paying late fee if its taxable annual income is more than ₹2.5 lakh. There is difference between due date and last date. 31st December 2021 was deadline for ITR due date whereas ITR last date is 31st March 2021. So, in case, a taxpayer has missed to file one’s ITR for AY 2021-22, he or she has a chance to file its ITR within the last date. But, the taxpayer is liable for paying late fee only when he or she has income tax liability. Since, there is no income tax liability on an earning individual if its annual taxable income is ₹2.50 lakh or less. So, such earning individuals need not to pay late fee if they file their ITR within the given last i.e. 31st March 2021.”…Read more>>