What are the Consequences of Filing Late Income Tax Returns for FY 2023-24

Income tax returns (ITR) Filing season is going on and the due date to file a Return of income tax is 31st July 2024. Filing tax returns is significant for every taxpayer in the first place and if filing is done before the due date, it’s beneficial.

But, what if the taxpayers fail to submit their income tax return on time? There would be consequences for failing to file returns on time. Taxpayers have to face certain consequences in case of late filing or voluntarily not filing the tax return.

Consequences of Late Filing of ITRs for FY 2023-24

If the return is submitted after the deadline for submitting an income return, the following consequences will apply. These conditions apply even if a belated return is submitted within the deadline of December 31, 2024, for the financial year 2023-24.

1. Assessee liable for Penal Interest under Section 234A

It mandates the taxpayer to pay 1% interest for each month or portion of a month beginning on the date after the ITR filing deadline, which is July 31st.

2. Late Fees

Beginning with the assessment year 2018-19, the assessee will be liable for late filing fees under section 234F. The late filing fees of Rs. 5,000 (for incomes exceeding Rs. 5 lakhs) and Rs. 1,000 (for incomes less than Rs. 5 lakhs) are levied under this section in case of late filing of ITR.

3. Carry forward of Loss

If a loss return is submitted beyond the due date, some losses cannot be carried forward.

4. Cannot Opt-out of New Tax Regime

• Applicable to Salaried Taxpayers filing ITR-1 and ITR-2; who do not have business Income.
• Taxpayers having business income can file belated ITR in the Old Tax Regime but have to file Form 10IEA before due date.

5. Income Tax Deductions Not Available

If a return is submitted belatedly, deduction under the following sections will not be available –

• Sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, and 80-IE (up to the assessment year 2017-18);
• Sections 10A, 10B, 80-IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, 80-IC, 80-ID, 80-IE, 80-JJA, 80-JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB (from the assesssment year 2018-19).

6. Tax Evasion

Non-filing of an ITR is deemed tax evasion by tax officials, and you could face imprisonment for 6 months to 7 years.

Conclusion

Filing an Income Tax Return (ITR) might be difficult if you are new to taxes, but CA consultants offer CA-assisted ITR filing services to make the process simple and pleasant for you. Whether you need help with deductions, exemptions, or just comprehending your taxable income, online or offline CA services will aid you in obtaining accurate and optimum tax refunds.