Latest ITR Update: Guidelines & Consequences of Filing Revised & Belated Tax Returns

As the initial deadline for filing income tax returns (ITR) ended on July 31, many individuals might be curious about what happens when they need to file a revised ITR after this date. Fortunately, there are provisions for those who missed the original deadline, but it's crucial to grasp the regulations concerning belated and revised returns.

If you missed the deadline for filing your original ITR, you can opt for a belated ITR. Furthermore, taxpayers who submitted their returns initially but later discovered omissions or incomplete details can file a revised return.

To be eligible for a revised return, the original return should have been filed by the due date, which was July 31, 2023, and it must have been verified within 30 days of e-filing. 

If the original return was not filed on time, it falls under the category of a belated tax return, leading to late fees as per Section 234F of the Income Tax Act, 1961.

However, for those who filed their original returns on time, there is a window until December 31 to submit a revised return under Section 139(5). This can be done even if the original return has already been processed by the Income Tax Department.

Applicable Penalties To Be Levied While Filing Belated ITR

Submitting a belated income tax return (ITR) comes with penalties. Taxpayers who file a belated return will face a late fee of Rs 5,000, along with applicable interest charges. However, if a taxpayer's total annual income is less than Rs 5 lakh in a financial year, the late fee is reduced to Rs 1,000.

Interest charges will apply at a rate of 1 percent per month on the taxable amount from the last date of the ITR filing.

Filing a revised return does not incur any penalty. However, if the assessing officer finds that any errors were intentional or fraudulent, the revision may not be allowed, and penalties may be imposed.

Providing an updated return does not result in a penalty or fee, but taxpayers must pay any additional tax owed, as per Section 140B of the Income Tax Act.

Section 139(4) gives permission for 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/. Additionally, certain private entities registered with the Income Tax Department can assist with the filing process."

Also Read: Income Tax Audit Report: Understanding its Significance and Submission Deadline