When is the last date to file a belated ITR? Nonetheless it is better to file a belated ITR than not filing any ITR, despite having a net taxable income
If you have missed the deadline of July 31, 2023 to file income tax return (ITR) for AY 2023-24 (FY 2022-23), you can still file your ITR. A taxpayer who has missed the ITR filing deadline of July 31, can file a belated ITR.The last date to file belated ITR is December 31 every year. Hence, if you have not filed for FY 2022-23 (AY 2023-24), the last date to file a belated ITR is December 31, 2023.
What is a belated return?
A belated return is the income tax return filed after the expiry of the original ITR filing deadline. Belated return is filed under Section 139(4) of the Income Tax Act, 1961.How to file belated ITR
The process of filing a belated ITR is the same as filing ITR before the expiry of the deadline. However, while filling out the belated ITR form, an individual is required to select section 139(4) instead of 139(1).Section 139(1) is to be selected if you file your ITR on or before the expiry of the due date, which was July 31, 2023, for AY 2023-24.
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What is the penalty for filing a belated ITR?
An individual is required to pay a late filing fee under Section 234F while filing belated ITR. A penalty of Rs 5,000 will be applicable for all individuals filing belated ITR. However, for individuals whose taxable income does not exceed Rs 5 lakh, a penalty of Rs 1,000 will be applicable for filing belated ITR.
An individual is required to pay this penalty even if there is no tax payment required to be made.
If the total income is below the exemption limit, then no late fees will be levied while filing belated ITR. Do note that even if the total income is below the exemption limit but if ITR filing is mandatory, then a penalty will be levied.
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Penal interest on tax dues
If there are any tax dues pending while filing belated ITR, then penal interest will be levied as well. Penal interest will be levied at 1% per month on the tax-due amount under Section 234 A, B or C.Penal interest under Section 234A is levied on the self-assessment tax dues. However, penal interest under Section 234B or C is levied due to non-payment or shortfall in advance tax payment, as the case may be.
Click here to read why you should consider file ITR even if your income is below the basic exemption limit.
Disadvantages of filing belated ITR
Though an individual can file a belated ITR, there are certain disadvantages as well. Apart from paying a penalty for late filing of ITR, an individual also loses certain benefits.You Might Also Like:
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An individual cannot carry forward losses from capital gains, business income and others (except losses from house property). Further, an individual cannot opt for the new tax regime while filing belated ITR for AY 2023-24.
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This story originally appeared on: India Times - Author:Faqs of Insurances
