Switching To New Tax Regime While Filing Belated IT Returns? Here’s What The Rule Says

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July 31 was last date for filing Income Tax Return for FY 2022-23. However, if in case a taxpayer has failed to file income tax return within this date, he/she will have time till December 31, 2023 to file his/her income tax returns by paying a penalty. However, this IT Return will be known as belated Income Tax Return.

There are two tax regimes in place presently. One is the old tax regime and the other one is the new tax regime.

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So, the question is, can individuals opt for new tax regime while filing a belated Income Tax Return?

According to finance experts, if a person has income from salary, house property or other sources but no income from business or profession in FY 2022-23, then the only way one can opt for a new tax regime for FY 2022-23 is by filing their ITR by July 31, 2023. Hence these individuals, while filing a belated ITR, will not be able to opt for new tax regime.

Read More: How to file Belated Income Tax Return for FY 2022-23, check here

Who can switch to new tax regime while filing belated ITR?Those with business or professional income can opt in or opt out of the new tax regime by communicating the choice of tax regime to the income tax department by filing form 10-IE.

Penalty for Filing a belated Income Tax Return To file a belated ITR, an individual has to pay a penalty of Rs 5,000 if net taxable income is above Rs 5 Lakh. However, if taxable income is below Rs 5 lakh, then the taxpayer will have to pay a penalty of Rs 1,000. Taxpayers filing belated ITR will also have pay penal interest at 1 per cent per month on the income tax due, if any.

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How to file a belated IT Return?A belated IT Return can be filed on the e-filing portal in the same manner as an original ITR. However, there are some differences. While filling out the belated ITR form, an individual is required to select section 139(4) instead of 139(1).