The last date for filing Income Tax Return (ITR) for the Assessment Year 2021-22 for individual taxpayers was on December 31, 2021. The due date for ITR filing for the year was extended many times taxpayers faced issues with Income-Tax Department’s new e-filing portal.

The Central Bureau of Direct Taxes (CBDT) recently extended the ITR deadline for audit cases till March 15, 2021. But the extension applies mostly to businesses.

However, those who missed the deadline can still file belated ITR until March 31, 2022. Section 139(4) of the Income Tax (I-T) Act allows taxpayers to file belated ITR and the last date for same is March 31, 2022. But there is a penalty for belated ITR filing under Section 234F of the I-T Act. This penalty depends on the income tax slab that the taxpayer falls in.

Under Section 234F of the I-T Act, a penalty is applied for not filing the ITR within the stipulated due date. Late fee or penalty depends on the taxpayer’s income. Belated returns need to be filed before the end of the assessment year or before the completion of the assessment, whichever is earlier. For those assessees whose taxable income does not exceed Rs 5 lakh, a penalty of Rs 1,000 is charged and Rs 5,000 for others. It is to be noted that some other taxpayers are exempt from paying penalties even if they file ITR after the due date. Those taxpayers whose gross income does not exceed the exemption limit don’t need to pay a late fee in case they missed the due date of December 31.

While the I-T Act provides for belated filing but failing to do so entails jail time from a minimum of 3 years to a maximum of 7 years. The I-T Department may impose a fine of 50% to 200% on taxpayer’s income tax outgo, over and above tax and interest liability due till the date taxpayer files the ITR after getting a notice from the government.

The government may launch legal proceedings against a taxpayer who hasn’t filed ITR even after the last date despite having tax liability over Rs 10,000.