Filing your ITR, or Income Tax Return, before the deadline hits is an extremely important exercise. The due date is the hard stop by which all returns must be filed to avoid late fees. Taxpayers who file their return post the due date will be obliged to pay interest rates on the tax due and will be charged a penalty.

That’s why it is important to be well informed about the ITR due dates, now that the previous deadline has been extended to 31st December, 2022.

ITR Due Date Extended

The last date for filing the income tax returns has been extended to 31st December, 2022, as opposed to the previous date of 31st July, 2022.

Therefore, taxpayers awaiting audit for their accounts must file ITR by 31st December of the FY of 2022.

Consequences Of Missing the ITR Filing Date

Failure to file an ITR return brings the consequences listed below:

1. Late Fee Penalty

If you fail to file ITR before the due date, you will have to pay a fee of INR 5,000. It will be reduced to INR 1,000 if your income is below INR 5 LPA. This penalty or challan is under the Section 234F.

2. Belated Return

A belated return is filed after the ITR filing due date has been surpassed. Here, you will have to pay an interest fee and penalty, and your losses will not be adjusted. As per the Income Tax Department, the due date for filing a belated return is 31st December, 2022.

3. Interest

Filing income tax post the due date will require you to pay an interest on the taxes due. This falls under Section 234F. The interest rate is set at 1% per month.

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Importance Of Income Tax Returns In India

The government of India has made it mandatory to pay taxes if your income falls in its specified brackets, with percentages according to income. When you provide proof of tax returns for the past three years, the approval on applied house loans, vehicle loans, and personal loans becomes more certain.

Furthermore, the losses incurred in the previous year don’t add up in the exemption year. Thus, this assists in maintaining a record.

Eligibility & Documents Required For Filing ITR

According to the Income Tax of India 1961, it is mandatory for an individual below the age of 60 to file ITR if he/she has a net income of INR 2.5 LPA. The other factors are:

• Individuals who wish to carry their losses ahead.
• Individuals over 80 years of age and net income beyond INR 5 LPA.
• Individuals between ages 60 and 80 with an annual income of INR 3 LPA or more
• A company that is functional and operates in India.

When filing ITR, one should keep the following documents handy:

• PAN Card
• Salary Slip
• Form 26AS
• Form 16A/16B/16C
• Bank Statement
• TDS Certificate
• Interest Certificate
• Proof of tax-saving investments

Different Kinds of ITR Forms You Should Know About

When filing an Income Tax Return online, there are 7 different kinds of forms:

• ITR-1 → This form is for those individuals who earn up to INR 50 LPA but own an income from salary, pension, rental properties, etc., or have an agricultural income of up to INR 5,000.
  
• ITR-2 → This form is for individuals who belong to HUFs (Hindu Unified Family) and have an income that isn’t a part of a profit or a business.
  
• ITR-3 → This form is available for individuals whose mode of income is through business or a profession.
  
• ITR-4 → Individuals who are a part of a presumptive taxation scheme & make less than INR 50 LPA from a profession under the Sections 44AD, 44ADA, and 44AE.
  
• ITR-5 → This form is for associations or partnerships who report their income in an FY.
  
• ITR-6 → This form should be used by a company filing tax in a financial year, except if it falls under the Section 11.
  
• ITR-7 → Political parties, institutions, trusts, and NGOs use this form to file taxes in a financial year.

How To File An ITR?

Now that the due date is almost here, you can easily file your ITR online. This needs to be done through the official Indian income tax. Make sure that you are registered on the website.

Upon successful registration, proceed with the below steps:

• Enter your User ID and the captcha.
• Enter the appropriate assessment year and choose the ITR form.
• Once done, the redirection will take you to a different form. Go through the guidelines.
• Once the details are filled, check out the details. Click on “Preview & Submit” to go ahead.
• After the submission is made, verify your identity through ID proof.
• Once the verification is complete, you will receive an SMS on your registered mobile number and email address.

Conclusion

Now that the due date for filing ITR has been extended make sure to do the needful to avoid the consequences. As a law-abiding individual, filing taxes is mandatory. Hence, it is best to file ITR before the last date.

The importance of an ITR reflects while applying for a home loan. One of the most important documents to be submitted is the ITR document along with the identity proofs. If you’re looking forward to applying for a home loan, you can check out Grihashakti’s interest rates online and check for your eligibility through the online eligibility calculator which helps you determine whether or not you can apply for the house loan.