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The Income Tax department saw a flurry of activity on the eve of the deadline for salaried individuals to file their Income Tax Returns (ITR) for the fiscal year 2021-2022, getting an amazing tally of over 63.47 lakh returns by 10 p.m. This increase in filings contributed significantly to the total number of tax returns filed, which as of July 30 exceeded 5.1 crore. But the momentum didn’t slow down; on the last day, 63.47 lakh more returns came in, pushing the total above the remarkable 5.73 crore barrier.
There is still time for individuals who missed the deadline to file their ITR, but there will be a late filing cost. Known as a “belated ITR,” this option lets people file their taxes later than they otherwise would, but there will be a financial penalty.
Tax regulations state that if an individual’s yearly income exceeds Rs. 5 lakh, they will be charged a late fee of Rs. 5,000 if they fail to file their ITR by December 31 of the assessment year. The late fee is not charged, nevertheless, if the total income is less than Rs. 5 lakh, or Rs. 1,000.
Memes and anecdotes that depict the common experiences of taxpayers throughout the filing process have been all over social media. The difficulties and annoyances faced have been consistent, ranging from hectic last-minute document searches to battling erratic internet connections and asking chartered accountants for help. These relatable memes demonstrate the necessity for easily accessible and user-friendly tax filing solutions in the increasingly digital world, while also serving as a tribute to the collective struggle.
Repercussions for Missing the ITR Submission Deadline:
- Interest: Under Section 234A, late submissions are subject to interest charges of 1% per month or fraction of a month on the outstanding tax balance.
- Late Fee: Under Section 234F, late filing is subject to a fee of Rs. 5,000; if the total income is less than Rs. 5 lakh, the fee drops to Rs. 1,000.
- Loss Adjustment: Failure to meet the deadline may prevent losses from being carried over for future adjustments, which could lower future tax obligations.
- Filing a return after the deadline results in a belated return, which is not eligible to carry forward losses for future adjustments and is subject to late fines and interest costs. December 31 of the assessment year is the cutoff date for late returns.
- Updated Return: In some circumstances, it may still be possible to file an updated return (ITR U) after the December 31 deadline.
In the complex world of modern finance, understanding the nuances of paying income taxes can frequently resemble traversing a dangerous maze. Fortunately, despite this complexity, there are priceless tools and resources ready to help and speed up the procedure, guaranteeing strict adherence to tax regulations and reducing stress. One such crucial ally is ClearTax, a well-known platform dedicated to streamlining the electronic filing procedure and meeting the various needs of taxpayers.
ClearTax provides services to a wide range of people, including salaried professionals, small business owners, independent contractors, and home-based entrepreneurs. ClearTax provides simple, easy-to-use solutions that make filing income tax returns less complicated and more enjoyable for all users, regardless of their financial situation or degree of expertise.
One of ClearTax’s unique selling points is its steadfast commitment to offering thorough assistance in choosing the right Income Tax Return (ITR) form for the 2023–2024 fiscal year. By providing a variety of customized forms, like ITR-1 for salaried individuals and ITR-4 for small business owners, ClearTax guarantees that taxpayers select the form that most closely matches their unique financial situation. This tailored advice not only clears up any ambiguities but also guarantees accurate reporting, which greatly streamlines the tax filing procedure.
Moreover, ClearTax understands how crucial it is to fulfill deadlines, especially when it comes to making advance tax payments. Taxpayers have important obligations that they must accomplish within the allotted time frames in order to avoid penalties and interest. Given the seriousness of these deadlines, ClearTax goes above and above by offering prompt reminders and unwavering help, enabling people to complete their tax obligations on time and effectively.
To put it simply, ClearTax is a shining example of dependability and efficiency in the field of tax compliance, providing crucial support to taxpayers of all stripes. ClearTax makes it possible for people to navigate the complex world of tax regulations with confidence and ease by providing an intuitive interface, thorough instruction, and steadfast assistance. This ensures smooth compliance while reducing stress and ambiguity.
