Missed the ITR Filing Deadline for FY 2023-24: How to file ITR now?

The ITR Filing Season end with the last date of filing income tax returns i.e. 31st July, 2024. Taxpayers who fail to submit their tax returns within the time specified do not need to worry, they still have a chance to submit their tax returns.

They can file a belated return for this. The last date to file the belated return is 31st December.

What is a Belated Return?

If a return is not furnished within the time allowed under section 139 (1) or within the time allowed under notice issued under section 142 (1), the person may furnish the return of any previous year at any time before-

a. the expiry of one year from the end of the relevant assessment year or the completion of the assessment, whichever is earlier (applicable up to the assessment year 2016-17);

b. the end of the relevant assessment year or the completion of the assessment, whichever is earlier (applicable for the assessment year 2017-18 to 2020-21);

c. December 31 of the relevant assessment year of the completion of the assessment, whichever is earlier (applicable from the assessment year 2021-22).

Penalty for filing Belated ITR

In addition to the late penalty, the delayed return will be subject to interest under sections 234A and 234B on the unpaid tax due. If a taxpayer files an amended tax return, he may miss the deadline for submitting a delayed 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) is a difficult task, but if you failed to file your return by 31st July, the hopes didn’t end there, you can file the return by the end of December i.e. 31st.

What if you don’t file the ITR up to 31st December?

ITR-U will be filed after 31st December 2024. You will not be able to claim a refund of excess Income Tax Paid if you don’t file your ITR upto 31st December 2024. Also, any tax liability paid is ITR-U will be accompanied by 25% Additional Tax, if ITR-U is furnished up to 31st March 2026 and 50% Additional Tax, if ITR-U is furnished up to 31st March 2027.