Last Opportunity: File Belated Income Tax Returns For FY23 By December 31 if You Have Not Done So Yet

The deadline for filing Income Tax Returns (ITR) for the financial year 2022-23 is quickly approaching. If you have not filed your ITR yet, the final date is December 31, 2023. Keep in mind that late filing will incur penalties and interest.

Under Section 234F of the Income Tax Act, failing to file your tax returns by the normal due date incurs a late filing fee of Rs 5,000. For taxpayers with a total income below Rs 5 lakhs, the fee is reduced to Rs 1,000.

Additionally, interest is charged on the unpaid tax amount for late filing. According to the sources, interest is applied at a rate of 1% per month or part of a month. If the December 31, 2023, deadline is missed, substantial financial consequences follow. It is worth noting here that after this deadline, penalties and interest are imposed on the taxpayer. 

Although an updated return can be filed within 24 months of the end of the relevant assessment year, it won't be accepted for claiming a tax refund. For the current fiscal year 2022-2023, ITR-U can be filed until March 31, 2026.

If the taxpayer fails to meet the belated return filing deadline, they won't be able to file the Income Tax Return (ITR) for FY 2022-23, unless specifically notified by the Income Tax Department to do so. 

However, in cases of 'genuine reasons' for missing the ITR filing, one can submit a request for condonation of delay under section 119. This involves asking the income tax authorities to overlook the delay and provide reasons for missing the deadline. 

In such cases, a penalty of Rs 10,000 is imposed, and interest at a rate of 1% is charged until the overdue return is filed. Additionally, failure to file the ITR could lead to prosecution under section 276 CC of the Income-tax Act.

Penalties for Late Filing of Income Tax Returns (ITR)

Late submission of an income tax return (ITR) incurs penalties. Individuals filing their ITR after the due date will be charged a late fee of Rs 5,000, along with applicable interest. However, if a taxpayer's annual income is below Rs 5 lakh, the late fee is reduced to Rs 1,000.

Interest will be applied at a rate of 1 percent per month on the taxable amount, starting from the last date of ITR filing. However, if the assessing officer detects intentional or fraudulent errors, the revision may not be allowed, and penalties may be imposed.

Filing an updated return does not attract penalties or fees, but any additional tax owed must be paid according to Section 140B of the Income Tax Act.

Section 139(4) allows the filing of overdue returns. Both revised and belated ITRs can be filed through the Income Tax Department's e-filing portal at https://eportal.incometax.gov.in/. Some private entities registered with the Income Tax Department can also assist with the filing process."
 

Also Read: Budget 2024: Key Insights into the New Income Tax Slabs Compared to the Old Income Tax Slabs