The due date for Income Tax Return filing for Assessment Year 2022–23 ended yesterday. More than 5.8 crore returns were filed till July 31, which was the last date of ITR filing for salaried employees, individuals and HUFs whose accounts don’t need to be audited.
Taxpayers who missed filing their ITRs by July 31 can now file belated returns. However, the belated ITR filing comes at a cost. Here are all the details you need to know about the belated ITR filing for AY 2022–23.
The last date to file the belated ITR for AY 2022-23 is 31 December 2022.
According to the Income Tax rules, the penalty for belated ITR filing could be up to Rs 5,000. However, for taxpayers whose total income is not more than Rs 5 lakh in a financial year, the maximum penalty for the delay is Rs 1000.
Late filing leads to interest under Section 234A, late filing fees under Section 234F, etc. Moreover, set off and carry forward of losses (except house property loss) and claiming certain deductions under Chapter VI-A will not be allowed in the case of belated ITR filing.
"We should never delay the filing of the income tax return." The first major consequence of a late filing is a penalty. One needs to pay a penalty for filing a belated return. Secondly, if there is tax to be paid, you will be charged interest @ 1% per month after the end of the due date till you pay taxes and file an ITR. Thirdly, one can not carry forward losses. Lastly, late filing of ITR will result in late processing and your refund, if any, will be further delayed, "says Sujit Bangar, Founder of Taxbbuddy.
"If you miss filing your returns, you will have to not only pay a penalty of up to Rs 5,000 (up to Rs 1,000 for taxpayers with an income below Rs 5 lakh) but also face other tax implications." You will not be able to carry forward losses (other than house property losses), if any, incurred during the year. "You also need to pay interest at 1% per month or part thereof on the outstanding tax liability," says Archit Gupta, Founder & CEO of Clear (formerly ClearTax).
According to the latest data on the Income Tax Department’s website, more than 4 crore returns have been verified by tax filers. Over 3 crore of verified ITRs have been processed by the Department till July 31.