Income Tax Return (ITR)- Impact of Delay in filing ITRs
Individuals, HUFs, Companies, Firms, LLPs, Associations of Persons, Body of Individuals, and any other juridical person are all subject to Income Tax regulations dictating the taxes to be assessed on their taxable income. Every person who qualifies as an Indian resident must pay tax on their taxable income. Every fiscal year, tax payers must file Income Tax Returns (ITRs) in accordance with the rules and regulations.
Individuals, HUFs, Companies, Firms, LLPs, Associations of Persons, Body of Individuals, and any other juridical person are all subject to Income Tax regulations dictating the taxes to be assessed on their taxable income. Every person who qualifies as an Indian resident must pay tax on their taxable income. Every fiscal year, tax payers must file Income Tax Returns (ITRs) in accordance with the rules and regulations.
Timelines for filing ITR for AY 2021-22
CBDT has extended the timelines for filing ITR and various audit reports for AY 2021-22 as below:
| Head | Revised Timeline |
| ITR filing by tax payers not covered under audit | 31st Dec 2021 |
| ITR filing for Tax audit cases | 15th Feb 2022 |
| ITR filing for Transfer Pricing | 28th Feb 2022 |
| ITR filing of Belated/Revised Return for FY 20-21 | 31st Mar 2022 |
| Furnish Audit Report | 15th Jan 2022 |
| Furnish Audit Report for Transfer Pricing cases | 31st Jan 2022 |
Consequences of Delay in filing ITR
Section 234F of the Income Tax was introduced on 1st April 2017. The provisions of this section become applicable if:
1. If the Assessee has not filed ITR as per the provisions of Sec 139
2. If the Assessee has delayed filing of ITR on or before respective due dates
The provision of Sec 234F applies to all categories of persons like Individual, HUF, AOP, BOI, Companies, Firms, LLP, etc in case the ITR is filed after respective due dates. The section has introduced late fee with an objective to ensure timely filing of returns.
Late Fees payable under Section 234F of IT Act:
1. Total Income of the Assessee is more than INR 5 Lakhs
- INR 5000 – ITR filed on or before 31st Dec
- INR 10,000 – ITR filed after 31st Dec
2. Total Income of the Assessee is less than INR 5 Lakhs
- Maximum Amount of Fee payable is INR 1000
Apart from the late filing fee, Assessee also faces below consequences due to delayed filing of returns:
- Unable to set off losses
- Interest on the delay of filing return
- Delayed Refunds ( if applicable)
Benefits of timely filing of ITRs
With timely filing of ITRs, the Assessee can avail the below benefits:
- Easy Loan Approvals
- Claim Tax Refund
- Quick Visa Processing
- Carry forward of losses
- Avoid Penalty & Prosecution
Consequences of ITR Filing Delay
On April 1, 2017, Section 234F of the Income Tax was enacted. If any of the following conditions are met, the provisions of this section apply:
1. If the assessee has not filed an ITR in accordance with Section 139,
2. If the assessee has failed to file his or her ITR on or before the due dates,
Individuals, HUFs, AOPs, BOIs, Companies, Firms, LLPs, and others are all subject to Sec 234F if their ITRs are filed beyond their respective due dates. With the goal of ensuring timely filing of returns, the section has implemented a late fee.
Late Fees payable under Section 234F of IT Act:
1. The assessee’s total income exceeds INR 5 lakhs.
- 5000 INR – ITR filed on or before December 31st
- 10,000 INR – ITR filed after December 31st
2. The assessee’s total income is less than INR 5 lakhs.
- The maximum fee payable is INR 1000.
Aside from the late filing charge, the Assessee bears the following repercussions as a result of late filing of returns:
- Incapable of triggering losses
- Penalty for late submission of a return
- Refunds That Have Been Delayed ( if applicable)
The advantages of filing ITRs on time
The Assessee can profit from the following advantages if ITRs are filed on time:
- Simple Loan Approval
- Request a Tax Refund
- Visa Processing in a Flash
- Losses carried forward
- Stay Away From Penalties & Prosecution