What if you don’t file your ITR before the due date: Issues other than Late Fees

The Due Date for Filing Income Tax Return (ITR) for FY 2022-23/AY 2023-24 is 31st July 2023. The Government is continuously educating and requesting the Taxpayers to file their returns on time and giving the warning that this time the due date will not be extended.

The due date of 31st July for filing ITR applies to the Individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP), Trust, or Local Authority. This date applies to them if they are not having a Tax Audit of Audit under any provisions of the Law.

So let’s see what are the consequences of not filing the return of Income on or before the due date.

Late Fees of Rs. 5000/ Rs. 1000 Applicable:

Late Fees u/s 234F of Rs. 5000 is applicable if you don’t file your return on time. This Late fee is restricted to Rs. 1000 if your income is upto Rs. 5000.

This Late Fee is Applicable only if you were required to file ITR as per Law. The same is not applicable if you are filing the ITR without applicability as per Law on a voluntary basis. The same is explained by the mentioned chart:

Carry forward of Losses:

You cannot carry forward any Loss except Loss under the head House Property if you don’t File your return on Time. However, Set-Off of Losses is allowed even in the case of Belated ITR.

Interest on Late Payment of Tax:

Interest @1% per month or part of the month u/s 234A is applicable after the due date of Filing the Income Tax Return.

For Example, Tax Liability comes out to be Rs. 100,000. The Due Date for Filing ITR was 31st July, but the Taxpayer filed it on 2nd August, then an Interest u/s 234A for Rs. 1000 will be applicable.

Delay in Receiving Refunds:

If you File your ITR Late, then your return will be late processed and as a result, your ITR Refund will be delayed.

Benefits of New Tax Regime

Taxpayers opting for New Tax Regime have to file the ITR before the due date. New Tax Regime cannot be opted for in ITR filing, once due date is expired.

Deductions under Chapter VI-A not available

Further, as per section 80AC, deductions in respect of certain incomes under Chapter VI-A [Heading C- Deduction in respect of certain incomes] would not be available.