The Income Tax Act of 1961 offers taxpayers the option to file a belated ITR should they miss the initial deadline for submitting their returns. This provision is covered in Section 139(4) of the Income Tax Act. The Indian Government requires all individuals, families, companies, partnerships, and other entities to pay taxes on their earnings.
Understanding Income Tax Return (ITR):
An Income Tax Return (ITR) is a form where you share details about your income and taxes with the Income Tax Department. Your tax amount is calculated based on your income. It’s mandatory to file the ITR each year before a specified due date.
Key Dates for AY 2023-24:
- The deadline to file Income Tax Returns (ITRs) for the assessment year 2023-24 is July 31st, 2023.
- The government hasn’t extended this deadline as of now.
- If you missed the July 31st deadline, you can still file a Belated ITR by December 31, 2023.
Belated ITR Explained:
- If you submit your income tax return after the original due date, it’s termed a ‘belated return.’
- However, there’s a penalty fee that you need to pay as per the Finance Act.
- Filing a belated ITR follows a similar process to filing before the deadline.
- But when filling out the form, select section 139(4) instead of 139(1).
Penalty and Late Fees:
- If you missed the initial deadline of July 31, 2023, you can still file a belated ITR, but there’s a penalty fee.
- From Assessment Year 2021-22, the late filing penalty was reduced to Rs 5,000 from Rs 10,000.
- The penalty amount is Rs 5,000, but if your total income is below Rs 5 lakh, the fine is Rs 1,000.
Exemption and Consequences:
- Those with income below the exemption limit don’t need to pay any late fee.
- Not filing ITRs on time can be costly; penalties for belated ITR can reach up to Rs 5,000.
- For individuals with income under Rs 5 lakh, the maximum penalty is Rs 1,000.
- There’s also an interest charge on unpaid tax liabilities for belated ITRs.
Carrying Forward Losses:
- If you file your ITR after the due date, you can’t carry forward losses under most income categories.
- However, you can still carry forward losses under the ‘income from house property’ category.
New Tax Regime and Belated ITRs:
- While submitting a belated ITR for AY 2023-24, you can’t opt for the new tax regime.
- This option is available only for those who file their ITR on time.
In summary, the Income Tax Act allows taxpayers a chance to file their returns after the deadline. This belated ITR process comes with penalties and restrictions, so it’s important to file on time. Remember, filing taxes correctly and promptly ensures you stay compliant with tax laws and avoid unnecessary financial burdens.
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