Missed Deadline ITR – What to Do Now?

Every year, you need to file your taxes and income tax returns by the 31st of July. For the year that starts in April and ends in March, the due date is always 31st July. The tax office sends us reminders through emails and texts so we don’t forget and end up with penalties. Still, some of us forget and miss that 31st July deadline. If that happens, people wonder what they can do next and what problems they might face. In this article, we’re going to talk about what happens if you’re late and how you can fix it.

Consequences for Late Filing of Income Tax Returns

If you didn’t file your income tax return by 31st July 2023, you’ll have to pay a penalty. But here’s something important: if you’re a taxpayer whose accounts are audited, you get a little more time. Your deadline is 31st October 2023. Only those who haven’t had their accounts audited will face penalties now.

The income tax department has set the penalties as:

  • Rs. 5,000 for those earning more than 5 lakh.
  • Rs. 1,000 for those earning less than 5 lakh but more than 2,50,000.
  • Good news for those earning less than 2,50,000: you won’t be penalized!

All these penalties fall under section 234F.

Missed the Tax Return Deadline? Here’s What to Do:

First, don’t panic! You can still file your tax and income tax return for A.Y.2023-24. If you didn’t get around to submitting them by the 31st July 2023 deadline, it’s called a “belated return.” In simple terms, a belated return is just a fancy name for filing your taxes late.

According to the tax rules, you can submit this late tax return anytime up to 3 months before the year’s assessment ends.

For the assessment year 2023-24, this means you have until 31st December 2023 to file your belated return. So, there’s still time!

Belated Income Tax Return: Penalty, Time Frame & Consequences

Downsides of Filing a Belated Income Tax Return

Filing your income tax return late does (belated return) have some consequences. Here’s a breakdown of the issues you might face:

1. Penalties for Late Filing (Section 234F):
– No penalty for incomes below 2.5 lakh.
– Rs. 1,000 fee for incomes below 5 lakh but more than 2.5 lakh.
– Rs. 5,000 fee for incomes above 5 lakh.

2. Interest Charges: If you owe any tax, you’ll have to pay interest on it. This interest is charged under sections 234A, 234B, and 234C.

3. Loss Carry Forward Restrictions: If you have certain types of financial losses, like from business or the sale of assets, you won’t be able to “carry them forward” to reduce your taxes in future years. The good news? You can still claim losses from house properties.

4. Missed Deductions: When you file an income tax return late, you lose out on some tax deductions. This includes deductions under sections 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE.

Remember, while there’s room to file your taxes after the deadline, it’s always a good idea to aim for punctuality to avoid these drawbacks.

In the next article, we will discuss how you can file a belated income tax return for A.Y.2023-24.

Frequently Asked Questions (FAQ) about Late Filing of Income Tax Return

1. What is the deadline for filing income tax returns for A.Y.2023-24?
– The deadline for filing income tax returns for the year that starts in April and ends in March is 31st July every year. For A.Y. 2023-24, the deadline was 31st July 2023.

2. What happens if I miss the 31st July deadline for filing my income tax return?
– If you miss the 31st July deadline, you will have to pay a penalty for late filing. However, taxpayers whose accounts are audited get a little more time, with a new deadline of 31st October 2023.

3. What are the penalties for late filing of income tax returns?
– The penalties for late filing fall under section 234F and are as follows:
– Rs. 5,000 for those earning more than 5 lakh.
– Rs. 1,000 for those earning less than 5 lakh but more than 2,50,000.
– No penalty for those earning less than 2,50,000.

4. What is a belated return?
– A belated return is the term used for filing your income tax returns after the deadline has passed. It is a way to file taxes late.

5. Is there a time limit for submitting a belated return?
– Yes, you can submit a belated return anytime up to 3 months before the end of the assessment year. For A.Y.2023-24, the deadline for filing a belated return is 31st December 2023.

6. What are the downsides of filing a belated income tax return?
– Filing a belated return can have several consequences, including:
– Penalties based on income brackets (Section 234F).
– Interest charges under sections 234A, 234B, and 234C if tax is owed.
– Restrictions on carrying forward certain financial losses.
– Missing out on tax deductions under various sections like 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE.

7. Can I still claim losses from house properties if I file a belated return?
– Yes, you can still claim losses from house properties even if you file a belated return.

8. Is it advisable to file taxes after the deadline?
– While filing taxes after the deadline is allowed, it is recommended to file them on time to avoid penalties, interest charges, and missed deductions.

9. Where can I find more information on how to file a belated income tax return for A.Y.2023-24?
– In the next article, we will discuss how you can file a belated income tax return for A.Y.2023-24.

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