The “Return of Income” is basically a document where taxpayers share details about how much money they made and how much tax they owe. For filing Income Tax returns, the deadline is usually July 31 of the applicable assessment year. But if you miss that deadline, don’t worry—you still get a second chance by filing Belated ITR for Ay 2023-24 and it’s basically filing your return after the deadline mentioned in the Income Tax Act.
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What is a Belated Return for Ay 2023-24?
If someone hasn’t submitted their tax return on time according to section 139(1), they can still file Belated ITR for Ay 2023-24. They have the option to file Belated ITR for Ay 2023-24, but there’s a deadline. They can file Belated Return for Ay 2023-24 either before three months prior to the end of the relevant assessment year (which is December 31, 2023, for the 2022-23 financial year) or before the assessment year is over, whichever comes first.
Consequences of late filing of ITR
The following are the consequences of Belated Filing of Income Tax Return:
Interest Penalty u/s 234A:
If you’re filing Belated ITR for Ay 2023-24, you’ll be charged a simple interest of 1% per month or part of a month. This interest is calculated from the day after the deadline until the actual date you file Belated Income Tax Return for Ay 2023-24. For instance, if the deadline is July 31, 2023, and you file your return on November 20, 2023, you’d be charged interest under section 234A for four months.
Late Filing Fees u/s 234F:
The maximum penalty you can face for Belated ITR Filing is ₹5,000.
If your total taxable income is over ₹5 lakh, the penalty is ₹5,000. If your total income is less than ₹5 lakh, the penalty is ₹1,000. And if your total income is less than ₹2,50,000, you won’t face any penalty.
Unable to Carry Forward Losses – You can’t carry forward losses under capital gains and business and profession. However, if you have losses from house property and unabsorbed depreciation, you can still carry them forward even if you file Belated Return for Ay 2023-24.
Major Disallowances – Certain deductions are not allowed, and these include deductions under sections 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE.
No Interest on Refund – Moreover, if a taxpayer is eligible for a refund under section 244A, they may lose the interest on the refund if the delay is caused by the taxpayer’s late filing.
Shifting Tax Regime – It’s not possible to switch to a different tax regime when filing Belated Income Tax Return under section 139(4).
How to File ITR if due Date of Belated ITR for Ay 2023-24 is missed?
There are two ways file after due date of Belated ITR Filing –
Requesting for Condonation of Delay
If you didn’t file your return by the initial deadline, you have the option to submit Belated ITR Filing until the end of December of the relevant assessment year i.e 2023-24. If you miss this extended deadline of Belated Income Tax Return for Ay 2023-24 due to valid reasons, you can request a condonation of delay from the income tax authorities.
To do this, reach out to the Income Tax Commissioner or the designated authority, explain why you missed the deadline of Belated ITR for Ay 2023-24, and ask for permission to file your income tax returns. The officer may consider your request based on certain criteria:
- The claim is accurate and valid.
- The case involves genuine hardship or merits.
- A refund is due because of excess tax deduction, TDS, advance tax, or self-assessment tax.
- No other person can assess the tax under the Income Tax Act.
If you haven’t paid the tax for the financial year 2022-23, you must settle the tax along with applicable interest under Section 234A, 234B, or 234C. This applies even if you are unable to file your income tax returns.
By filing ITR-U
One can’t do ITR U filing if assesse wants to –
To show loss
The updated return lowers the overall tax liability that was previously stated
The updated return generates a refund or enhances the refund already requested
Return with income below 2.5 lakhs wasn’t filed earlier
If a search or survey has been launched against the taxpayer, the tax office has seized assets or books of accounts, or if there are any ongoing legal procedures or investigations against the taxpayer
If you owe NIL in additional taxes.
Key Points
- ITR-U cannot be filed if there is no additional liability
- Person with income between 2.5 to 5 lakhs can also file ITR-U by paying late filing fees of Rs. 1000.
- ITR-U can be filed only after the deadline for the revised return and the belated return has passed or lapsed.
Penalty on Filing ITR U
Without additional taxes, ITR U cannot be filed. Additional taxes, interest and penalties must be paid if the taxpayer has not submitted an Original ITR as required by Section 139(1), a Revision ITR as required by Section 139(5), or a Belated ITR Filing.
For Income between 2.5 lakh to 5 lakh –
Late fee of Rs. 1000/- for the delay in ITR filing under Section 234F.
No other additional taxes.
For Income above 5 lakhs –
Tax along with interest under Section 234A, 234B, 234C
Late fee of Rs. 5000/- for the delay in ITR filing under Section 234F.
Additional Tax
If ITR is going to file up to 12 months till end of relevant assessment year (i.e ITR for Ay 2023-24 or FY 2022-23 is filed before 31/03/2025) – 25% of the total amount of tax and interest as additional tax
If ITR is going to file from 12 to 24 months till end of relevant assesment year (i.e ITR for Ay 2023-24 or FY 2022-23 is filed before 31/03/2026)– 50% of the total amount of tax and interest as additional tax.
These taxpayers can, however, submit claims for Advance Tax, TDS, TCS, and Relief in accordance with Sections 89, 90, 90A, 91, 115JAA, or 115JD..
What happen if you didn’t file Income tax return?
In case you’ve paid your taxes on time but missed filing returns, you can’t file returns or request a condonation of delay. The income tax department might issue a notice under Section 271F for not filing ITR, imposing a penalty of up to Rs.5,000 for missing the deadline. However, if you have a valid reason and the officer is satisfied, you may be exempt from the penalty.
Failure to file returns could lead to legal action by the income tax department, including issuing notices and penalties. In extreme cases, you could face prosecution and a potential imprisonment sentence of up to seven years. If you receive a notice, it’s crucial to respond on the income tax e-filing portal and file the ITR to comply with the notice.
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