ITR: People had to file their income tax return by 31 July 2023. However, those who have not filed their income tax return till the due date, they can file income tax return under late fee. At the same time, people are also getting another important facility on the income tax filing portal. Let’s know about it…
Income Tax Return: The Income Tax Department had introduced a new facility on the Income Tax e-filing website which allows a person to pay income tax later. This means that a person can continue to file ITR without paying the pending income tax earlier. Once the ITR is filed, the income tax amount can be paid subject to certain conditions. Earlier ITR could be filed only when the outstanding tax was paid.
Pay Later
The Income Tax Department has given the option of Pay Later when we file Income Tax Return (ITR). Hence, a person can file ITR without paying income tax dues by using the option of pay later. Let us know how to use the ‘Pay Later’ option on the e-filing portal of the Income Tax Department.
Take care of them
However, the Pay Later option cannot be used for tax payments like advance tax, TDS and others. There are a few things one should keep in mind while using the ‘pay later’ option. Once you select this option while filing ITR, first of all, it will be written, ‘You may be considered as assessee in default’. Second, it will be written ‘You may be liable to pay interest on tax payable’.
Tax recovery measures
If penal interest is applicable on the tax due, then a person will be deemed to have been set in default. Once a person is treated as a default taxpayer, the Income Tax Department can initiate all measures for recovery of such tax. An information notice will be sent to the individual once the ITR is processed, according to the helpdesk agent of the Income Tax Department. In this notice, it will be mentioned that you owe the amount of tax and pay it as soon as possible. After that, a person will get 30 days to pay the income tax dues without any penal interest. If the outstanding tax is paid after 30 days, penal interest will be applicable.
Logic is different
However, the opinion of tax experts is divided regarding the period of one month. It is argued that from the moment the person opts to pay later, he is in default. Therefore, 1% penal interest will be applicable on the tax due. If the outstanding tax is paid after 30 days, an additional penal interest of 1% will be applicable. In such a situation, whether you should use this option or not, definitely take the advice of a tax expert.
