Introduction: Filing income tax returns is a critical financial responsibility, and the passing of the initial deadlines can result in significant consequences. This article explores the intricacies of belated returns, emphasizing their limitations, consequences, and the step-by-step process of filing online under Section 139(4) of the Income Tax Act.
1. What is Belated Return?
- A belated return is one filed after the due date, as per Section 139(4) of the Income Tax Act.
- The due date for normal personal income tax returns was October 31, 2023, for audit cases and July 31, 2023, for non-audit cases.
- However, individuals now have only 8 days left, until December 31, 2023, to file belated returns for the Financial Year 2022-23.
2. Limitations of Filing Belated Application:
- Certain restrictions apply, including the inability to carry forward losses from business/main occupation and specific deductions under sections 10A, 10B, 80IA, 80IB, 80IC, 80ID, and 80IE.
- Loss of interest benefits under 244A u/s 244A in case of a delayed return.
- Inability to change the tax regime when filing a late return.
3. Consequences of Submitting Belated Income Tax Return:
- Late Fees: A late fee of Rs. 5,000 is applicable for total incomes of Rs. 5 lakhs and above, while a fee of Rs. 1,000 is levied for incomes less than Rs. 5 lakhs. No late fees for incomes below Rs. 2.5 lakhs.
- Interest: Late filers must pay interest on the tax due, calculated from the original due date to the actual filing date.
- Loss of Certain Benefits: Late filers may lose benefits, such as the ability to carry forward losses or claim deductions.
4. Steps to File Late Return Online (Section 139(4)):
- Step 1: Log in to your e-filing account.
- Step 2: Navigate to 'e-File' > 'Income Tax Returns' > 'File Income Tax Return.'
- Step 3: Choose the appropriate assessment year.
- Steps 4-10: Follow the online filing process, including selecting the right ITR form, verifying personal information, and completing income details.
5. Updated Return Post-Deadline:
- Individuals who missed the initial deadlines have only 8 days left, until December 31, 2023, to file an updated return for the Financial Year 2022-23.
Conclusion: Understanding the nuances of belated returns is crucial. This article provides insights into consequences like late fees and interest payments, as well as limitations on carrying forward losses. Following the step-by-step guide for filing online under Section 139(4) ensures compliance with tax regulations. Given the limited time until December 31, 2023, individuals are urged to promptly file their updated returns to avoid further penalties and ensure compliance.
Additional Information:
- If an individual fails to file the ITR by the initial deadline, it results in a belated return.
- The belated ITR can be filed up to December 31, 2023.
- Late filing fees of Rs 5,000 or Rs 1,000 (as applicable) are levied, and interest on the tax amount may also apply
