As per section 234 A, if you are a taxpayer who is late in filing returns, you are liable to pay a monthly 1% penalty interest from your taxes. The duration is calculated from the last date of the returns filed to when it is filed. i.e. if you are an individual taxpayer who is late in filing your returns, you have to start paying the interest from August to the month return is filed.
The tax has to be paid in advance
In a financial year, if your total tax liability is 10,000 or more, you must pay your taxes in advance. After calculating the tax liability, the taxpayer must pay the tax in advance at the end of the financial year, usually by March 15. If you fail to pay the tax or, in other words, if the tax paid in advance by the taxpayer is less than 90% of the total tax liability, then according to section 234 B, he has to pay 1% interest starting from April to the monthly return is filed.
Apart from that, according to section 234 C, you will receive penalty interests for delaying the taxes to be paid.
Taxpayers must pay the total taxes of a financial year on June 15, September 15, December 15, and March 15 as four installments. These instalments are 15, 45, 75, and 100 percent of the total tax liability.
Senior citizens who are 60 years or above and don’t have any business revenue don’t have to pay taxes in advance. While paying taxes, you have to calculate the penalty interests and pay accordingly.
Fine for late returns
If the total income of the taxpayer, who is late in filing returns, is below five lakhs, he will have to pay a fine of Rs 1000. But if the total income exceeds five lakhs, he has to pay a fine of Rs 5000.
Cannot compensate for the loss
If you delay the return filing, you cannot compensate the value addition or business loss with your future revenue. This rule applies if you delay the return filing even one day from the scheduled date. Moreover, you are also subjected to receiving late tax returns if you are late filing your returns.
Last date to submit returns
The taxpayer cannot directly submit the tax returns for 2021-22 after December 31, 2022. Likewise, if you find any mistakes after submitting your returns, the last date to correct and resubmit your returns is December 31, 2022. But if the tax calculation order is declared before that date, you cannot resubmit your returns.
