ITR filing deadline: What happens if you miss filing returns by July 31 this year?

This means that you will have to forfeit the option to select the old regime for the respective financial year as you will be automatically placed under the new tax regime. Currently, there are two tax regimes being operated: the old regime and the new regime which was introduced in 2020 which features revised tax slabs and concessionary rates.

What is the penalty if you miss filing ITR by July 31 this year?

If you fail to file your ITR by July 31, you have the option to submit a late return and as per Section 234F of the Income Tax Act, late filing fees of ₹5000 can be levied. If your income does not exceed ₹5 lakh, the late filing fees is ₹1,000. Additionally, interest will be charged at the rate of 1% per month or part of the month on the outstanding tax amount from the due date but penalty imposed cannot surpass the amount of tax in arrears.

Those who choose to file their income tax returns late will also have to give up the opportunity to carry forward any capital losses they might have suffered. This means such taxpayers will be unable to utilize these losses to offset future gains resulting in a higher tax liability in the upcoming years.