Thread by @sambhavdaga

Consequences of not filing ITR on or before the due date i.e. 31st July for non-audit cases

A short thread and a practical tip 🧵

A. For income above 5L, the penalty would be Rs. 5000 till 31st Dec.
Further delay attracts a penalty of Rs. 10000 when filed between 1st Jan to 31 Mar

B. For income up to 5L, the penalty is Rs. 1000.

1/n

You will attract interest at the rate of 1% per month on outstanding tax payable till the date of filing of ITR.

So, if your outstanding tax payable (after TDS & advance tax) is Rs. 2L, Rs. 2000 would be charged as Interest every month from Aug till the date of filing ITR.

2/n

If you have invested in Foreign stocks like Google, Apple, Microsoft, etc., you earn dividends on which tax is deducted by such foreign company.

To claim the same, one needs to file Form 67 on or before the due date to claim a tax credit of such taxes in India.

3/n

If you wish to opt for the new regime, you need to file form 10E and file ITR on or before the due date to avail benefit of the new regime.

4/n

Have losses and wish to carry them forward to the future years?

You need to file on time to carry forward your losses to future years.

5/n

Have capital gains and couldn't re-invest to take exemption under section 54?

You need to deposit in the capital gain account scheme on or before the due date of filing ITR to claim exemption.

6/n

PRACTICAL TIP 💡

If you couldn't collate information for filing, file with whatever you have now & revise it soon.

It's not a recommendation to file incorrectly but it can save you a 5k penalty & other consequences listed above.

#IncomeTaxReturns
#Extend_Due_Date_Immediately

Share this thread with all the people who are non-filers or reluctant to file on time.

They may not know all of this.

RT so that it reaches a lot of people before 31st July and they file their tax returns immediately.

Follow @sambhavdaga for more such tax updates.