Penalty on Late Filing of ITR: Taxpayers can now file a belated ITR till December 31 with late fees and an interest penalty, here are income tax rules for belated ITRs
Income Tax Return Deadline Missed: More than 6.50 crore income tax returns (ITRs) were filed for the financial year 2022-23 (AY 2023-24) till July 31 evening — the last day of ITR filing. Going by a recent survey by LocalCircles, around 14 per cent of the total taxpayers might not have filed their ITRs till the last date. According to the income tax rules, such taxpayers can now file a belated ITR till December 31 with late fees and an interest penalty. Also, losses cannot be carried forward, apart from limitations on claiming deductions.
Late Fees, Penalty on Late Filing Of ITR
In case you have missed the July 31 ITR filing deadline, you can do it now till December 31, 2023, by paying a late fee, along with a 1 per cent penal interest per month on taxes.
Maneet Pal Singh, partner at I.P. Pasricha & Co, said, “In case a taxpayer fails to file ITR by due date (July 31), he or she can file belated ITR up to December 31 for the assessment year 2023-24 along with fees under Section 234F amounting to Rs 1,000 (having income up to Rs 5 lakh) and Rs 5,000 (having income exceeding Rs 5 lakh).”
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He said interest penalty under Sections 234A, B and C of the Income Tax Act, 1961, will also be levied accordingly on late payment of taxes. However, if the assessee has filed NIL ITR, he or she can revise it till December 31 without any late fees or penalty, Singh said.
The rate of interest for belated tax payments is 1 per cent per month.
If you have filed your ITR till July 31, you can revise it without any late fees till December 31, 2023.
Belated ITR: Limitations On Claiming Deductions, Adjusting Losses
Though taxpayers can now file their income tax returns, there are some limitations on claiming deductions or carrying forward losses.
Prateek Goyall, partner (taxation) at law firm MV Kini, said filing a belated return may result in limitations on claiming certain deductions and carrying forward losses, except for loss from house property, due to missing the prescribed due dates.
“To file a belated return, visit the income tax department’s e-filing portal, select the appropriate ITR form, provide accurate information, pay outstanding taxes, and wait for processing,” Goyall said.
Read More: Can You Verify Your ITR After July 31?
Can You e-Verify Your ITR After July 31?
If you have filed your ITR till July 31, 2023, you can e-verify it within 30 days without any penalty, failing which will reject your income tax return.
According to a tax professional, “If you have filed your ITR, you have to verify it within 30 days. Earlier, it used to be 120 days, which was reduced to 30 days last year. If you fail to verify, your ITR will be rejected after 30 days.”
Taxpayers can e-verify their ITR here. It can be done through Aadhaar OTP, bank account, ATM, net banking and demat account.
