Belated Return Due Date: Understanding What is it & Consequences in Tax Filing

As we are approaching the end of the year, the return due date is also getting closer. Time is running out to file your Income Tax Returns (ITR) for the 2022-23 financial year. Act now before December 31, 2023, to avoid penalties and late filing charges.

A belated return occurs when someone misses the initial deadline of July 31 to file their income tax return and submits it later but before December 31 of the same year. This applies to individuals not undergoing a mandatory audit.

For those undergoing an audit, the deadline is September 30. Filing after these dates is considered a belated return under section 139(4). Keep in mind that filing a belated return may result in penalties and extra interest on owed taxes.

What Is Belated Return Due Date?

A belated return due date is the deadline to file your income tax returns on failure to file on 31st July. The last date for filing tax returns for the AY 2023-24 was the 31st of July 2023. If you are one of those who could not file his/her within this deadline then you have the opportunity to submit a late return for an assessment year within December 31 of the corresponding assessment year. 

For instance, the belated AY 2023-24 return can be lodged between August 1 and December 31, 2023. In the dynamic landscape of taxation, understanding the nuances of Section 139(4) is your key to financial resilience. 

Belated Return Due Date For FY 2022-23 (AY 2023-24)

The initial deadline to file Income Tax Returns (ITRs) for the 2022-2023 financial year was July 31, 2023. If you missed it, the final chance is until December 31. Late filing, as per Section 234F, incurs a fee of Rs.5,000, reduced to Rs.1,000 for those earning below Rs.5 lakh. Late filers also face 1% monthly interest on unpaid tax under section 234A.

Consequences of Delayed Income Tax Return Filing:

There can be some consequences for not filing your delayed income tax returns within the stipulated belated return due date. Some of these are as follows:

1. Interest Penalty (Section 234A):

   - If you file your Income Tax Return (ITR) late, you are required to pay simple interest at a rate of 1% per month or part of a month. This interest accumulates from the day after the due date until the actual filing date. For example, if the due date is 31/07/2022, and you file the ITR on 15/10/2022, interest under Section 234A is applied for 3 months.

2. Late Filing Fees According to Section 234F:

- The maximum penalty for filing a return late is Rs.5,000.

- If the total taxable income is over Rs.5 lakh, the penalty remains Rs.5,000.

- For total income between Rs.2,50,000 and Rs.5 lakh, the penalty is Rs.1,000.

- No penalty is applied if the total income is less than Rs.2,50,000.

Note: After December 31st, financial consequences increased, involving penalties and interest. However, you can file an updated return within 24 months of the relevant assessment year, but additional income tax is applicable. The Finance Act of 2022 extended the timeframe for updated returns. No penalty or fee is imposed, but Section 140B requires additional tax payment.