If ITR is not filed till March 31, then problems will increase, this is how you can file income tax

If you have not yet filed your ITR, then the Income Tax Department is giving you one last chance. If you do not file ITR before March 31, then you may have to pay a fine for this. Let us tell you how you can file ITR.

Only a few are left to end the financial year. The last date for filing income tax is 31 March 2023. In such a situation, if you have not yet filed the updated Income Tax Return (ITR) for the financial year 2019-20, then you should fill it before March 31.

If you have not yet filed your ITR, then the Income Tax Department is giving you one last chance. If you do not file ITR before March 31, then you may have to pay a fine for this. Let us tell you how you can file ITR.

Till when can file updated ITR?

You have to file an updated return within 24 months from the end of the assessment year. There are some terms and conditions for this. Therefore, if you have not been able to file ITR for FY 2019-22 due to any reason, then you can do so by March 31. There will be no penalty and fees for filing updated returns by March 31. But, according to section 140B of the Income Tax Act, you will have to pay additional tax.

How much is the additional tax?

If the updated ITR is filed within 12 months from the end of the relevant assessment year, then the taxpayer has to pay an additional 25% tax on the remaining tax. On the other hand, if the updated return is filed within 24 months from the end of the relevant assessment year, then 50% tax will have to be paid. This means that you will have to pay an additional 50% tax if you file an updated return for the financial year 2019-20. The assessment year for the financial year 2019-20 will be 2020-21.

What happens if ITR is not filed?

To file the updated return, the taxpayer will have to use the ITR Forms notified by the Income Tax Department for the relevant assessment year. If taxpayers do not file returns, then they will not be able to carry forward the losses of the current financial year.

Is it necessary to file ITR?

According to tax experts, if someone has regular income and his income falls in the taxable range, then it is necessary for him to file income tax return. Currently, income up to Rs 2.5 lakh per annum is tax free. If the income is more than this, the person has to pay tax.