Mumbai, July 30: The deadline to file the income tax return (ITR) for the financial year 2022-23 (assessment year 2023-24) is July 31, 2023. Before the July 31 deadline, the Income Tax Department has appealed to all remaining taxpayers in the country to promptly file their Income Tax Returns (ITRs) for the assessment year 2023-24. However, individuals who miss this deadline can still file their ITRs later, and these will be referred to as belated ITRs. The last date to file a belated ITR for FY 2022-23 (AY 2023-24) is December 31, 2023, providing a limited extension for those who couldn't meet the initial filing deadline.

Filing belated returns does offer taxpayers a grace period if they miss the ITR filing deadline; however, it comes with several drawbacks and potential consequences. These include incurring late fees, forfeiting the interest on refunds, facing penalties, and in severe cases, even the possibility of prosecution and imprisonment. GST on Hostel Rent: Hostelstay, PG Accommodation to Get Costly as It Attracts 12% Goods and Services Tax.

Penalties and Loss of Benefits if You Miss ITR Filing Deadline

According to Section 234F of the Income Tax Act, 1961, a person filing belated ITRs is subject to penalties, with the amount varying based on their taxable income. Taxpayers falling under the category of small taxpayers with a taxable income not exceeding Rs 5 lakh in a financial year are liable to pay a penalty of Rs 1,000. On the other hand, for other taxpayers, the penalty can go up to Rs 5,000 for late filing of their income tax returns. Beyond the penalty, individuals who miss the July 31 filing deadline may face additional financial consequences. In cases where the person has a tax liability, they will be subject to penal interest under relevant Sections 234A, 234B, or 234C of the Income Tax Act. Over 5 Cr ITRs Filed for 2022-23 Fiscal So Far.

To receive an income tax refund, it is essential to file and verify the ITR. However, if an individual opts for a belated ITR, no interest will be provided on the tax refund amount. Moreover, late filers will miss out on the opportunity to utilise certain losses, such as those incurred from the sale of mutual funds or equity shares, which could have otherwise been beneficial in offsetting taxable gains. The ITR e-filing portal has received an impressive number of over 5 crore filed returns, of which 4.46 crore have been successfully e-verified. As of now, the chances of a deadline extension seem unlikely.

(The above story first appeared on LatestLY on Jul 30, 2023 05:27 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).