Do Interior Designers need to file ITR
Yes, interior designers need to file an income tax return (ITR) if their total income exceeds the specified threshold. The threshold for filing an ITR for the financial year 2022-23 (assessment year 2023-24) is Rs. 2.5 lakh.
However, there are some exceptions to this rule. For example, interior designers who are not residents of India do not need to file an ITR.
To visit: https://www.mca.gov.in/
Interior designers who are required to file an ITR can choose from a variety of ITR forms. The most common ITR form for interior designers is ITR 3. This form is used by individuals who are self-employed and have income from other sources, such as a salary or rental income.
Interior designers can file their ITRs online or through a tax consultant. The due date for filing an ITR for the financial year 2022-23 (assessment year 2023-24) is July 31, 2023.
If an interior designer fails to file their ITR by the due date, they may be liable for penalties. The penalties for late filing of ITR are as follows:
1. If the ITR is filed after the due date but within three months, a penalty of Rs. 500 will be levied.
2. If the ITR is filed after three months but within six months, a penalty of Rs. 1000 will be levied.
3. If the ITR is filed after six months, a penalty of Rs. 5000 will be levied.
In addition to the above penalties, the interior designer may also be liable to pay interest on the outstanding tax. The interest rate is 1% per month or part of a month on the outstanding tax.
If an interior designer willfully fails to file their ITR, they may also be liable to face prosecution by the Income Tax Department. The prosecution may result in imprisonment for a term of three months to two years, along with a fine.
It is important for interior designers to file their ITRs on time to avoid the above penalties. They can file their ITRs online or through a tax consultant.
