Missed July 31 ITR deadline? File belated return by Dec 31

But you will have to pay a late fee, interest, and won’t be able to carry forward business and capital losses

The deadline for filing the income-tax return (ITR) for assessment year 2023-24 was July 31 2023. However, for those who missed the deadline, there is still a chance to make amends. The Income-Tax (I-T) Act provides an opportunity to file what is called a belated ITR.

“If an assess who is required to file an ITR under Section 139 of the Act, 1961, misses the deadline, she can file a belated return by December 31, 2023.”

Stay compliant 

Filing a belated return enables you to stay complaint with tax regulations and avoid legal complications. An ITR is required to be filed in order to show the taxpayer’s income and sources of income to the government as proof of being a legitimate taxpayer. “A person’s citizenship as well as business in India is dependent on the taxes and ITR filed by them, as allows them to continue their citizenship or business within India.”

Points out that even if you missed the original deadline, you can still claim a tax refund if you are eligible for one, by filing a belated return.

Financial consequences

While belated returns come as a saving grace, they carry a cost, “If the income exceeds the basic exemption limit and the ITR is filed after the due date but on or before December 31,2023, a late filing fee of Rs5,000/- is levied. However, for taxpayers whose income does not exceed Rs 5lakh, the late filing fee doesn’t exceed Rs 1,000.” Warns that the assesses will have to pay an interest cost under Section 234A. Interest under Section 234A is charged at the rate of 1 per cent per month or part of a month on the unpaid tax amount.

Narang adds that besides interest under Section 234A, interest under 234B may also continue to apply. “This ultimately increases the assessor’s overall tax liability,” he says. Section 234B pertains to delays in advance tax payments or incomplete payments. Those who file a belated return will also not be eligible for deductions under Part-C of Chapter VI-A. The taxpayer also pays a price in terms of carrying forward losses. “While the assesses can carry forward losses arising from house property, she can’t carry forward business and capital losses.”

Don’t leave it for the last minute 

File a belated return right away and do not make the mistake of leaving this task until the deadline of December 31, 2023.

Ensure all the information you provide in the belated return is accurate to avoid any issues later. “keep all relevant documents ready to support the information in your return as the tax department can ask for verifications.” If you have any outstanding taxes, pay them along with any applicable interest before filing the belated return.

If, after filing your belated ITR, you realise that you made an error, you can revise it. You can revise your tax return onli9ne until the last day (i.e., December 31,2023, on or before midnight)

While furnishing a belated ITR, select the option “Filed under Section 139(4)-after the due date”. Finally, verify your ITR within 30days of filing it.

Singh suggest seeking professional advice to file a belated ITR. “Be extra cautious while filing all the particulars relating to losses and claiming credit for tax deducted at source, tax collected at source and advance tax paid,” he adds.

The I-T Departments offers a customer support service called a co-browsing facility, Here, tax agents help taxpayers file their ITRs. “In the co-browsing facility, an agent connects with the taxpayer on a chat tool. Those taxpayers who require expert help in filing an ITR can avail of it.” If you don’t qualify to file an ITR and missed the return filing deadline, you can do so without any worry. “No penalty will be imposed if the income did not require a mandatory filing of return under Section 139 (1), even though the return is filed after the expiration of the assessment year.”

HOW TO FILE A BELATED RETURN 

The process of filing a belated return is the same as filing the tax return is the same as filing the tax return on or before the due date.

While filing the ITR form, select “Return filed under Section 139 (4).

If you are filing a belated return for FY23 (AY24), then you need to fill the applicable ITRs as notified for FY23.

Co-browsing facility provided by the tax department can be utilised by taxpayers who require technical assistance while filing their belated ITR online.

Support agents can guide users through the e-filing process, helping them navigate the website and complete the necessary steps accurately.

For More Details: Pooja Manoj Gupta, visit www.giia26.com
Email: pmgiia26.com Mobile 8882286639