Chance to file ITR even after July 31, but with fine

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Income tax return should always be filed on time. But if you too are late in filing ITR , then the government gives you one more chance to file the return. The last date for filing income tax return for the financial year 2022-23 is July 31, 2023. However, even after this, the return can be filed.  But fee will have to be paid for that. Let’s get to know how?

If a person is not able to file income tax return by the prescribed deadline i.e. 31st July, then he can file belated return under section 139(4) up to 3 months before the end of the concerned assessment year i.e. AY 2023-24.  Belated return can be filed anytime till 31st December.  Accordingly, after 31st July, you will get five more months. To file belated returns, select the option of ‘section 139(4) Belated Return filed after due date’…

This delay in filing return comes with a charge. Fee under section 234F has to be paid for filing belated return. The amount of late fee is dependent on earnings. The fee is Rs 5,000 if the total income is more than Rs 5 lakh. Although relief has been given to small taxpayers. For those whose earning is less than Rs 5 lakh, fee will not exceed Rs 1,000.

Apart from the fees, there are some other disadvantages in filing belated return. 1) If a person does not file ITR by the due date and files belated return, then he will not be able to carry forward any other loss, such as business loss to future years, except loss from house property, due to which you will not be able to reduce the tax liability on future income. However, the loss can be set off against the income of the relevant financial year.

If you have more tax deductions during the year then you can claim refund. If you file ITR till 31st July, you get simple interest at the rate of 0.5% per month i.e. 6% per annum on the refund amount. Suppose one files the return on 31st July and his refund comes on 30th October, then he will get interest for 7 months from April to October… Whereas, if a belated return is filed on 1st August 2023,  then Interest will be available for only 3 months (August, September and October).  Interest for April to July will not be available. The taxpayer will also be fined u/s 234A for filing belated returns after the due date. Interest will have to be paid at the rate of 1% per month on the amount of tax liability for that financial year. The period of interest will start immediately after July 31 till the filing of returns.

If tax refund is due to you,  then it will be available only if you verify it after filing the return. Delay in ITR filing will delay processing and refund will take time.

There will be no option to choose new tax regime on filing belated return. You will have to file return under old tax regime only. If there is any discrepancy in the belated return, it can be revised. But here as well, if you file the return at the last moment then the chances of revising the return will be less.

So, if you are not able to file return before 31st July, then you can file return by 31st December through belated return. Income Tax Department gives many opportunities to file return. If you are not able to file belated return, you also get the option of updated return. But even after so many opportunities, if you deliberately do not file return and hide your income, then it can have serious consequences.