On July 31, the last day for submitting ITRs, more than 6.50 crore income tax returns (ITRs) for the fiscal year 2022–23 (AY 2023–24) had been submitted. According to a recent LocalCircles study, around 14% of all taxpayers may not have submitted their ITRs by the deadline. These taxpayers may now submit a late ITR until December 31 with late costs and an interest penalty, in accordance with the income tax regulations. In addition, losses cannot be carried forward and there are restrictions on how much may be deducted.
Late Fees and ITR Filing Lateness Penalties
If you didn’t file your ITR by the deadline of July 31, you may do it now until December 31, 2023 by paying a late charge and 1% penal interest on your taxes.
“In case a taxpayer fails to file ITR by due date (July 31), he or she can file belated ITR up to December 31 for the assessment year 2023–24 along with fees under Section 234F amounting to Rs 1,000 (having income up to Rs 5 lakh) and Rs 5,000 (having income exceeding Rs 5 lakh), ” said Maneet Pal Singh, partner at I.P. Pasricha & Co.
He said that in addition to the interest penalty under Sections 234A, B, and C of the Income Tax Act of 1961, late tax payments will also be subject to those penalties. According to Singh, if the assessee submitted a NIL ITR, they are still permitted to make changes up to December 31 without being charged a late fee or penalty.
For late tax payments, interest is charged at a monthly rate of 1%.
You have until December 31, 2023, to update your ITR without paying a late charge if you submitted it before July 31.
Belated ITR: Restrictions on Deductions and Losses Adjustment
Taxpayers may now submit their income tax returns, but there are certain restrictions on what they can deduct or how much they can carry over in losses.
Due to missing the required due dates, Prateek Goyall, partner (taxation) at the legal firm MV Kini, warned that submitting a late return may result in restrictions on claiming certain deductions and carrying forward losses, with the exception of loss from dwelling property.
Visit the income tax department’s e-filing site, choose the proper ITR form, provide correct information, settle any back taxes owed, and then wait for processing, said Goyall.
After July 31, can you still e-verify your ITR?
If you submitted your ITR before July 31, 2023, you may e-verify it within 30 days without paying a penalty; if you don’t, your income tax return will be rejected.
If you have submitted your ITR, you must check it within 30 days, according to a tax expert. It used to be 120 days, but last year it was shortened to 30 days. Your ITR will be rejected after 30 days if you don’t verify.
Here is where taxpayers may e-verify their ITR. You may accomplish it using your bank account, ATM, net banking, demat account, and your Aadhaar OTP.