The deadline to file belated income tax returns for FY 2023-24 is approaching.
The last date for filing belated returns is December 31, 2024, whereas the original deadline for tax returns was July 31, 2024.
What is belated ITR filing?
A belated ITR is a tax return filed after July 31 but before December 31 of the assessment year.
Do you have to pay a penalty for belated tax returns?
If you file your tax return after July 31, a penalty of Rs 5,000 will be charged for late filing. However, if your annual income is below Rs 5 lakh, the penalty will be Rs 1,000.
As per the Income Tax Department’s regulations, if a person fails to file their income tax return within the time specified under section 139(1) or the period mentioned in the notice under section 142, they can file the return within three months from the end of the assessment year or before the assessment, whichever comes first. However, late filing fees under section 234F will also apply.
What happens after the belated return deadline passes?
As per Section 234F of the Income Tax Act, taxpayers who miss the belated return deadline may face penalties and other consequences:
- A penalty of Rs 10,000 applies for returns filed after December 31 but before March 31 of the assessment year.
- For those with an annual income below Rs 5 lakh, the penalty is reduced to Rs 1,000.
- Interest on the outstanding tax will also be charged under Section 234A.
- Taxpayers filing late returns cannot carry forward losses, such as business or capital losses.
If a taxpayer misses the December 31 deadline, they can request the Income Tax Department for an extension by explaining the genuine reasons for the delay.
If the department accepts the request, the taxpayer can file the return by paying a Rs 10,000 penalty.
Additionally, 1 percent interest will be charged on the outstanding amount.
Failure to file the tax return may lead to action under Section 276CC of the Income Tax Act.
