It is important to note that you may face certain penalties or consequences for filing late. However, it’s crucial to complete the process as soon as possible to minimize any further issues.
What is the deadline for filing belated ITR?
Remember, the deadline for filing belated income tax returns is December 31 each year. If you haven’t filed your taxes for the 2023-24 financial year (assessment year 2024-25), you have until December 31, 2024, to submit your late return.
A belated return refers to the submission of your income tax return after the original deadline (July 31) has passed. This type of return is filed under Section 139(4) of the Income Tax Act, 1961.
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How to file belated ITR for FY 2023-24?
The process for filing a belated ITR is similar to filing before the deadline. The only difference is that when completing the belated ITR form, you must select section 139(4) instead of 139(1), according to an ET report.
Filing an income tax return after the deadline subjects individuals to a late filing fee under Section 234F of the Income Tax Act. The penalty for filing a belated ITR before December 31 of the assessment year is Rs 5,000. However, if the total income does not exceed Rs 5,00,000, the penalty is capped at Rs 1,000.
Individuals whose taxable income is below Rs 5 lakh will face a penalty of Rs 1,000 for filing a belated ITR, regardless of whether any tax payment is required. If the total income falls below the basic exemption limit, no late fees will be imposed for a delayed ITR. However, a fine will still be levied if filing an ITR is mandatory, even if the total income is below the exemption limit, the report said.
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In addition to the late filing fee, penal interest will be charged on any pending tax dues while filing a belated ITR. Under Section 234 A, B, or C, penal interest is levied at a rate of 1% per month on the tax-due amount. Section 234A applies to self-assessment tax dues, while Sections 234B and 234C apply to non-payment or shortfall in advance tax payment, respectively.
Filing a belated ITR comes with several disadvantages beyond the penalty for late filing. Individuals lose the ability to carry forward losses from capital gains, business income, and other sources, with the exception of losses from house property.