Penalty for Late Filing of Income Tax Return of FY 23-24

Penalty for Late Filing of Income Tax Return of FY 23-24 The Due for filing the return of Income Tax for the Financial year 2023-24 (FY 23-24) for Non-Audit cases is 31st July 2024. Let us know what is the penalty and other consequences for the belated filing of the Income Tax Return (ITR) for the Assessment year 2024-25 (AY 24-25).

Penalty of Rs. 5000 is applicable for non-filing ITR

The Late fee of Rs. 5,000 under section 234F would be leviable where the return is filed after the due date i.e., 31st July 2024. However, the late fee shall not exceed Rs. 1,000 where, the total income does not exceed Rs. 5,00,000.

Interest U/S 234A

Interest under section 234A is attracted for failure to file a return of income on or before the due date mentioned above i.e. interest is payable where an assessee furnishes the return of income after the due date or does not furnish the return of income. Simple interest@1% per month or part of the month is payable for the period commencing from the date immediately following the due date and ending the date of actual filing of Return.

Cannot opt out of New Tax Regime

If a Non-Bussiness taxpayer does not file their ITR (ITR-1 and ITR-2) before the due date, he cannot opt for Old Tax Regime.

Late Refund of Taxes

Delay in filing ITR, leads to delay in issue of TDS/TCS Refund.

Best Judgment Assessment

If you do not file an ITR, the income tax assessing officer may issue an assessment based on his best judgment. This means that the tax officer can estimate the taxpayer's income and tax liability using the information available to him.

Prosecution and Imprisonment

As per Section 276CC of Income Tax If a person wilfully fails to furnish in due time the return of income which he is required to furnish under sub-section (1) of section 139 he shall be punishable,— (i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds Rs. 2500,000, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to two years and with fine: However, this provision is not applicable on you if you file the belated return before 31st December 2024 or ITR-U before the time given in section 139(8A).