• The last date for filing a belated return is 31st December of the assessment year (unless extended by the government). Therefore, for this year, you may submit the belated return by 31 December 2023 at the latest.
• Last Date for Filing Income Tax Returns in India 2023. The last date to file your Income tax returns (ITR) for the income earned in FY 2022-23 (AY 2023-24) is 31st July 2023 without any late fee.
What is the penalty for late ITR filing in 2023?
• Belated ITR Fee: For belated ITR filing, you will have to pay a late fee of up to Rs 5000. For taxpayers having an annual income less than Rs 5 lakh, the late fee is Rs 1000 while for others it is Rs 5000.
What is the time limit for filing a belated ITR?
• If an individual missed the deadline of July 31, 2023, to file an income tax return (ITR) for FY 2022-23 (AY 2023-24), income tax laws allow one to file a belated ITR. The last date to file belated ITR for FY 2022-23 (AY 2023-24) is December 31, 2023.
• If an individual doesn’t file, the ITR by the deadline it is termed a belated return. If you miss the deadline the belated ITR can be filed up to December 31, 2023. The late filing fee of Rs 5,000 or Rs 1,000 as applicable will be levied on filing the belated ITR and it may also attract interest on the tax amount.
What is the difference between a belated ITR and a revised ITR?
• Those who missed the last date to file an original ITR can file a belated ITR. Similarly, when taxpayers file returns but later realize that they have missed some information or not disclosed something completely, they can file a revised return.
Consequences of not filing by the due date
Prosecution
The income tax officer can initiate proceedings for prosecution if the person willfully fails to file a return even after issuing notices. The imprisonment can be for a term of three months to two years with a fine.
If the tax you owe to the income tax department is higher, the prosecution period may extend to seven years.
Penalty
Further, the income tax officer may impose a penalty of up to 50% of the tax due in case of underreporting income.
Apart from the penalty levied by the IT department, there are other consequences that a taxpayer may face for late filing of returns:
Unable to set off losses
Losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years. You cannot set off these losses against future gains if the return has not been filed within the due date. However, if there are losses under house property, carrying forward losses is permitted.
Interest in the delay of filing the return
Apart from the penalty for late filing, interest will be charged under Section 234A at 1% per month or part thereof on tax due until the payment of taxes.
It is important to note that you cannot file an ITR unless you pay taxes. The interest calculation under the said section will start from the date falling immediately after the due date, i.e. 31 August 2022 for FY 2021-22. So, the longer you wait, the more you pay.
Delayed refunds
In case you’re entitled to receive a refund from the government for excess taxes paid, you must file the returns before the due date to receive your refund at the earliest.
Benefits of filing ITR on time
Filing your ITR on time does make you feel responsible and good about yourself, but the benefits don’t end there. Filing your ITR on time can benefit you in more ways:
Easy Loan Approval
Filing the ITR will help individuals when they have to apply for a vehicle loan (2-wheeler or 4-wheeler), house loan, personal loan, etc.
Claim Tax Refund
If you have paid excess tax to the income tax department, you should file your income tax return as early as possible to process the return and receive a tax refund.
Income & Address Proof
You can use the income tax return as proof of your income and address, which is mandatory when applying for a loan or visa.
Quick Visa Processing
Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the visa application.
Carry Forward Your Losses
If you file the income tax return within the due date, you will be able to carry forward losses to subsequent years. You can use such losses to set off against your future income.
Avoid Penalty and Prosecution
You can avoid the income tax department initiating prosecution proceedings as discussed in the below section.
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