If you missed filing an income tax return (ITR) for FY 2022-23, no issues, you can still file a return; however, it will be referred to as a belated ITR. For FY 2022-23, the ITR deadline was July 31, 2023, but you can file it before December 31, 2023, with a penalty of up to Rs 5,000. This is the deadline for filing a late ITR under Section 139(4) of the Income-tax Act of 1961. Individuals who have missed the original filing deadline in June can now file a belated ITR. Also, the December ITR file is done to correct errors in the original ITR and update it under Section 139(5) of the Income-tax Act, which requires filing a belated ITR.
Steps to file a delayed ITR
1) The process to file a belated ITR is the same as the original ITR. Go to the official website of the income tax e-filing platform.
2) Go the 139(4) section while filing belated ITR form. Be careful while doing it, as there is no separate ITR form for a belated ITR.
3) While filing a belated ITR form for FY 2022-23, ensure you use the forms notified for AY 2023-24.
Know penalty rate
Under Section 234F of the Income-tax Act, a Rs 5,000 penalty will be applied to you. However, the penalty is reduced to Rs 1,000 for small taxpayers whose total income is at most Rs 5 lakh.
If you have been delayed in paying your income tax, you can do it, along with the penalty. If an income tax payment is not made, penal interest will be assessed under Section 234A. A monthly penalty interest rate of 1 per cent is applied to the tax payable. If there is a gap in advance tax payment, penal interest is calculated under Sections 234B and 234C. A monthly interest rate of 1 per cent is charged.
Know how to file revised ITR
If the initial ITR has errors, the updated ITR can be filed, and the tax return still needs to be processed. The procedure for filing a revised ITR is the same as for filing a belated or original ITR.
1) While filing the revised ITR, choose Section 139(5) in the form. You need to share the acknowledgement number and the date of filing the original ITR.
If you miss the December 31 deadline, then...
According to the income tax laws, if you do not file the belated ITRs by December 31, you still have the option to file your income tax returns. This is referred to as filing updated returns (ITR-U). A revised return, however, can only be filed after the assessment year has ended.
Within 24 months of the end of the relevant assessment year, a revised ITR can be filed. Individuals can, therefore, submit ITR-U for fiscal year 2022-23 between April 1, 2024 and March 31, 2026. If the ITR-U for FY 2022-23 is not filed within the first relevant assessment year, such individuals would have to pay a 25 per cent surcharge on the tax owed. Individuals can also file an amended return if they have not previously filed an ITR and have no outstanding tax liabilities. They will, however, have to pay a penalty for the late filing.