- Filing Deadlines and Penalties: The last date for filing belated Income Tax Returns (ITR) and GST returns is December 31, with penalties for belated ITRs ranging from ₹1,000 to ₹5,000 unless the gross income is below the basic exemption limit. An updated return can be filed until March 31, 2027, to correct any omissions in the original ITR.
- Loss Carry Forward Limitations: If a belated return is filed after the due date, taxpayers cannot carry forward and set off certain losses against future profits, except for losses related to house property. Additionally, interest will be charged at 1% per month on outstanding tax amounts from the return filing date until the due date.
- TDS Rates for Non-Filers: Non-filers face higher TDS and TCS rates, which can be double the standard rate or 20% if a PAN is not provided. Furthermore, non-filing of ITR can lead to serious legal consequences, including imprisonment for up to 7 years and fines if the tax liability exceeds ₹25,000.
Source A2ztaxcorp
