For the Assessment Year 2023–2024, the deadline to submit an Income Tax Return (ITR) was July 31, 2023. Even though over 6.5 crore income tax forms were filed this year, many people still didn't take the proper action. There are still choices accessible to you, though. It is possible to submit an ITR beyond the deadline, however there are fines and limitations.
How can you submit ITR after due date?
For the fiscal year 2022–2023 (assessment year 2023–2024), the deadline to submit a late ITR is December 31, 2023. But there is a price to pay for this. According to Section 234F of the Income Tax Act of 1961, anyone who files their ITRs late is subject to a fine of up to Rs 5,000. The late filing cost is lowered to Rs 1,000 if your total annual income is less than Rs 5 lakh. It's crucial to be aware that submitting an abelated return has certain drawbacks.
Disadvantages of filing ITR after the due date
For instance, a number of losses, such as business and capital losses, cannot be carried forward to be offset in later years. Losses from residential property, however, are an exemption that can be made even if your taxes are filed after the deadline.
READ | GST Council likely to finalise modalities for taxing online gaming, casinos on Wednesday
In several cases under the Income Tax Act, deductions or exemptions won't be allowed if you wait to file your ITR. You cannot submit returns or request approval of delay if you cleared your taxes on time but failed to file your returns. A notification under Section 271F may be issued by the income tax department for failure to file an ITR.
A fine of up to Rs. 5,000 may be imposed on you if the deadline is missed. However, if you have a valid justification for not submitting and the officer is happy with it, you might not be required to pay the fine.
But if you underreported your income, you might be subject to fines of up to 200% of the tax due. The assessing officer may waive the penalty in cases where the taxpayer underreported his income but settled taxes with interest beyond the due date. In this scenario, the taxpayer will not be assessed a penalty.
If you get a notification from the income tax division, you have to react to it on the income tax e-filing website and submit an ITR in order to abide by the notice. Failure to do so may result in legal action and/or up to seven years in jail. Despite these fines and limitations, you must still submit your late ITR to prevent future issues.
READ | Meet man who slept on station, started with Rs 1000, now runs Rs 36000 crore company, know his net worth, business
