Today, July 31, 2023, is the deadline for individuals and Hindu Undivided Family (HUF) to file their Income Tax Return (ITR) for Assessment Year 2023-24 (Fiscal Year 2022-23) falls on Monday. These categories constitute the largest proportion of total filers.
With less than 36 hours remaining before the deadline, the number of Income Tax Returns (ITR) filed has surpassed 6 crore, marking a significant increase as compared to 5.83 crore filings on the same date last year, July 31, 2022. As of now, there has been no indication from the government regarding an extension of the due date.
The Income Tax Department announced that over 6 crore ITRs have been filed so far (as of July 30th), and approximately 26.76 lakh ITRs were filed on that very day until 6.30 PM, in a tweet on Sunday. Furthermore, the e-filing portal witnessed more than 1.30 crore successful logins by that time.
The Income Tax Department asserts that return processing has become significantly faster, with an average processing time of just 16 days. In the previous fiscal year, more than 42 percent of Income Tax Returns (ITRs) were processed within one day. This improvement in processing time has also led to quicker issuance of refunds, evidenced by a notable increase of 37 percent in refund amounts during the last year, totaling ₹3.07 lakh crore, as compared to the previous year. During FY23, the combined total of income tax returns filed by individuals and businesses reached 7.78 crores, surpassing the 7.3 crore filings in FY22.
Consequences of Not Filing ITR by Today
Monday is the final day for individuals and Hindu Undivided Families (HUF) to submit their Income Tax Returns (ITR) for Assessment Year 2023-24 (Fiscal Year 2022-23), constituting the largest portion of total filers. For those who fail to meet the deadline, filing returns from August 1 until December 31 will incur a late fee of up to ₹5,000, in addition to the loss of various privileges.
If individuals fail to file their tax returns by 11:59 PM on July 31, they can still submit a belated return by December 31, 2023, but they will be subject to fines. Those with an income between ₹2.5 lakh and ₹5 lakh will face a fine of ₹1,000, while those with an income exceeding ₹5 lakh will have to pay ₹5,000. Additionally, filing a loss return after the due date will result in the inability to carry forward certain losses, such as business and capital losses, for set off in subsequent years. However, an exception applies to losses from house property, which can still be carried forward even if the returns are filed late.
If someone who files late owes taxes, they will be liable for penal interest. Furthermore, apart from the tax amount, an interest of one percent per month or part thereof will be charged for the late filing of ITR, along with an additional one percent for default in the payment of advance tax, until the date of filing the belated ITR.