Missing the deadline to file your income tax return for the financial year 2022-23 (Assessment Year 2023-24), which is July 31, 2023, doesn't mean you can't file it at all. You can still file your tax return, but it will be considered as a "belated ITR" since it's filed after the deadline.
When you file a belated income tax return, you need to pay a late filing fee and penal interest on any taxes you owe. Here's what you need to know about filing a belated income tax return in simple English:
1. Belated ITR
If you miss the due date to file your income tax return, the return you file later is known as a belated ITR. This is allowed under section 139 (4) of the Income-tax Act.
2. Last Date for Filing Belated ITR
You can file the belated ITR until December 31, 2023, for the financial year 2022-23. Earlier, the deadline was March 31 of the assessment year, but now it has been reduced to December 31.
3. Penalty for Belated ITR
The late filing fee for belated ITR has been reduced. You will be required to pay a late filing fee of Rs 5,000. However, if your total income is less than Rs 5 lakh, the late filing fee will not exceed Rs 1,000.
4. Benefits Lost
Filing a belated ITR means you will lose certain benefits. You won't be able to carry forward losses from business, profession, capital gains, and other sources. Only losses under the "Income from house property" head can be carried forward.
5. Revised Belated ITR
If you find a mistake in your belated ITR, you can revise it. The last date to revise the belated or original ITR for FY 2022-23 is December 31, 2023. But remember, the last date for both belated and revised ITR is the same.
6. Relevant Assessment Year
While filing the belated ITR for FY 2022-23, you must use the applicable ITR form for the assessment year 2023-24.
7. Missed Belated ITR Deadline
If you miss the belated ITR deadline of December 31, 2023, you still have another option. You can file an updated ITR under Section 139 (8) after the end of the assessment year, which means after March 31, 2024. The last date to file the updated ITR for FY 2022-23 is March 31, 2026.
Filing a belated income tax return is possible, but it's essential to be aware of the penalties and potential losses you may face. Make sure to file your return on time to avoid these complications.
The author is a Chartered Accountant with 2 decades of experience into Accounting, Taxation, Auditing, Risk & Compliance, Credit Controls, Due diligence. Currently, the author is the founder and managing partner at RRL Global Services.
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