Are you one of those individuals who missed their income tax return filing for the AY 2023-24 which was on July 31?
If yes, then there are still a few available alternatives where you can file belated ITR under certain restrictions and with a few penalties.
When Is The Last Date To File Belated ITR?
If you have not filed your income tax returns for FY 2022-23 (AY 2023-24), then the last date to file a belated ITR is December 31, 2023.
As per the norm, a taxpayer is supposed to file the belated ITR before the completion of the assessment or end of the relevant assessment year whichever falls earlier.
How To File Belated ITR?
Taxpayers can visit the official ITR portal--https://www.incometax.gov.in/iec/foportal/, login into their account and file the return.
You have to pay a penalty for filing the return after the actual date. The penalty fees is as per Section 234F of the Income Tax Act, 1961.
For instance, as per the Act, a taxpayer with less than 5 lakh income bracket is entitled to pay Rs 1000 as penalty.
A tax professional can inform you more on the accurate penalty fees and you can verify on the income tax portal.
However, it is important to note that although penalties are accepted, there are several disadvantages of submitting a late ITR.
Disadvantages of Belated ITR Filing
Enterprises and companies cannot set off their losses or carry them forward in the subsequent years.
House property losses can be carried forward regardless of late ITR filing.
As an entrepreneur, if you pay taxes on time but miss ITR filing date, then you cannot apply the condonation of delay.
Certain exemptions and deductions are inapplicable in case of delayed ITR filing.
If you have a valid reason for the delay and the assessing officer is satisfied with the reason, your penalty can be waived off.
Ignoring ITR notices can be harmful and ensure that you respond to them within the right timeframe.
Skipping ITR to avoid penalties can cause complications in the coming years.
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