Home BusinessITR Filing 2023: Missed Deadline to File Income Tax Return? Here’s What You Can Do
If you have paid your taxes on time but failed to file your income tax return, you will not be able to file the returns or request a late filing. The Income Tax Department may issue a notice under Section 271F for not filing your ITR, and you may have to pay a penalty of up to Rs 5,000 for missing the deadline. However, if you have a valid reason for not filing and the officer is satisfied, you may be exempt from paying the penalty.
New Delhi: The deadline for filing Income Tax Returns (ITR) for the Assessment Year 2023-24 was July 31, 2023. If you missed the deadline, there’s no need to panic. A recent LocalCircles study reveals that approximately 14% of all taxpayers have not submitted their ITRs by the deadline. Fortunately, you still have options available to you, such as filing a belated ITR. However, there are penalties and restrictions associated with late filing.
If you failed to file your ITR by July 31st, you can still do so by December 31st, 2023, by paying a late fee and 1% punitive interest on your taxes. According to Section 234F of the Income Tax Act, individuals filing their ITRs after the due date may incur a penalty of up to Rs 5,000. However, if your annual gross income is less than Rs 5 lakh, the late filing fee may be waived or reduced to Rs 1,000.
Late filing of ITR comes with certain disadvantages, including restrictions on claiming deductions or carrying losses forward. Furthermore, if you have paid your taxes on time but failed to file your ITR, you cannot file the returns or request a late filing. The Income Tax Department may issue a notice under Section 271F for not filing your ITR.
In some cases, you may not have to pay the penalty of up to Rs 5,000 for missing the deadline if you have a valid reason for not filing and the officer is satisfied with your explanation. However, underreported income may result in a penalty of up to 200% of the tax payable. If you have paid taxes with interest after the deadline but have under-reported your income, the assessing officer may waive the penalty.
Filing your income tax return late can have various disadvantages, such as the inability to carry forward losses from business or capital gains to offset future income. However, there are exceptions to these rules. For example, losses from house property can still be carried forward even if you file your return late. Additionally, some deductions or exemptions, like the deduction for medical expenses, may still be available.
It is important to note that the penalties and restrictions for filing a belated return may change from year to year. Therefore, it is advisable to consult a tax advisor to understand the latest rules and regulations before filing your return late. Stay updated with the latest updates by subscribing to our newsletter today!