The Income Tax Act allows taxpayers to file ITR even after one has missed the due dates. In such a scenario, one can file belated returns as per the notification issued by the Income Tax Department. However, one will have to incur a penalty and other charges while filing belated returns.
Income Tax Department notifies the due date for filing ITR at the start of every assessment year. One can file returns within the due date under Section 139(1) of the Income Tax Act. When taxpayers miss out on these due dates, they can still file belated returns under Section 139(4) of the Income Tax Act.
Individuals opting for belated returns may have to pay penalties and interest charges along with their tax liability. Such penalties and charges depend on the tax slabs of the assessee. A person coming under a higher tax slab will have to pay a high penalty, whereas taxpayers in lower slabs are liable to pay lower penalties.
For AY 2022-23, the ITR filing due date for individuals and HUFs is July 31 2022. After that, they can file their belated returns till December 31 2022.
Also Read: Section 139 of the Income Tax Act: Provisions For Filing Different Types Of Returns
The following are the various types of ITRs:
Taxpayers opting for belated returns are liable to pay a penalty while filing belated ITR. The IT Department levies penalty under Section 234F of Income Tax Act. Until AY 2017-18, there was no provision for any penalty on belated returns. The government inserted Section 234F in IT Act through Finance Bill 2018.
Penalty for various tax slabs are as follows:
E-Filing Date | Penalty if Total income is below Rs. 5,00,000 | Penalty if Total income is above Rs. 5,00,000 |
Before due date | 0 | 0 |
After due date | Rs. 1,000 | Rs. 5,000 |
Apart from paying a penalty, taxpayers are also liable to pay penal interest on belated returns as well. The IT Department levies interest under Section 234A of Income Tax Act at the rate of 1% per month or part of a month on estimated tax liability.
The calculation of interest starts from just after the original due date till the date on which one files their ITR. It is important to note that interest calculation starts after the expiry of the original due date. For example, original due date for filing ITR for AY 2021-22 was July 31 2021. So, the Department will charge penal interest from August 1 2021.
Also Read: Income Tax Return Filing: Due Dates And Penalties
Apart from paying penalties and interest, taxpayers opting for belated filing of income tax returns may not be able to take advantage of certain carry forward facilities. Losses under the category “capital gain”, business/profession, and losses accrued from maintaining and owning a racehorse will not be allowed to be carried forward or set off from succeeding years.
Now, taxpayers are also eligible for refunds on excess tax deposited with the government. In case one is filing returns within the original due date, the Income Tax Department will compute interest on refund from the first day of the assessment year. However, in the case of belated returns, interest is computed from the date of filing the returns. Therefore, individuals may miss out on the part of interest due to late filing of income tax returns.
Taxpayers always have an option to file belated returns in case they miss out on due dates. However, they must avoid this delay and file their returns within the due date to avoid monetary losses.
Ans. After filing income tax return, individuals may find that they have omitted or put wrong information in their ITR. In such cases, the Income Tax Department provides a facility of revised returns where they can make changes without incurring any penalty. Taxpayers can even revise a belated return u/s 139(5) of the Income Tax Act.
Ans. One needs to carry out e-verification of their returns within 120 days of filing ITR. If e-verification is not done, then tax authorities will not treat the returns as valid and will decline to process it. In such a case, IT Department may trigger penal provisions for non-filing of returns.
Ans. Taxpayers can claim refunds when they file belated returns. There is no restriction on refund claims. However, assesses may have to forgo a part of their interest on refunds while filing belated returns.
Ans. Tax audit is a statutory audit under Section 44AB of Income Tax Act. If the individual does not file TAR within the due date, they are liable to pay the penalty. The penalty charged will be the least of the following:
0.55 of total sales or gross receipts
Rs. 1,50,000
Ans. Taxpayers filing the wrong return may have to face certain consequences. The Department will consider these returns as defective under Section 139(9) of Income Tax Act. However, the IT Department provides taxpayers with the option to rectify their returns by filing a revised return.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
Public Provident Fund (PPF) – Know PPF Details and Its Benefits
In 1968, the National Savings Institute introduced the PPF scheme. The Public Provident Fund (PPF) ... Read More »How to Withdraw PF Amount? – Step-by-Step Guide
EPF (Employees Provident Fund) is a popular savings scheme for employees in India. The Central Gove... Read More »Previous Year in Income Tax: Exceptions on Taxation
‘Previous Year’ in the Income Tax Act, 1961 is an important concept associated with the payment... Read More »What are Capital Receipts and What are its Types?
The concept of a receipt is easy to understand as it is described as a written record that a paymen... Read More »What is Anti-Dumping Duty (ADD) – Its Working, Examples and Calculation
Anti-dumping duty refers to a tax or other charges levied on a particular imported product. The con... Read More »Loan to Purchase Land – Types, Features, Eligibility and Documents Required
Loans for land purchase or plot loans are secured loans given for purchasing plots of land. Borrowe... Read More »List of 11 Tax-Free Income Sources in India (2023)
There are many sources through which a person can earn his/her income. It can be income from salary... Read More »New GST Rates in India (2023) – Latest Changes in GST Rates
GST or the Goods and Services Tax is one of the most significant tax reforms to be ushered in since... Read More »What is Input Tax Credit (ITC) in GST – Eligibility and Documents Required To Claim ITC
GST is consumption-based taxation levied at all stages in a value chain. Set-off of GST paid in the... Read More »What is Cess on Income Tax: Overview, Types and Calculation
Cess is a tax on taxes imposed by the Central Government or state governments for specific reasons.... Read More »Section 80EEB: Eligibility & Deduction Amount
Electric vehicles are better for the environment and an efficient alternative to fuel-run vehicles.... Read More »What is Section 80GGA: Deductions on Donations Made for Rural Development
Income Tax Act provides several opportunities for taxpayers to claim partial or full deductions. Se... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10