ITR filing deadline on July 31: Understand penalties and options

By Vivek Dubey

CNBC-TV18.com

Published July  18, 2024

ITR Filing Duty

Filing Income Tax Returns (ITR) is a crucial annual responsibility for citizens. It allows taxpayers to claim refunds on excess tax paid or deducted.

Deadline Reminder

The deadline for filing ITR for the financial year 2022-2023 (assessment year 2023-2024) is July 31, 2023. Reminders are being issued to ensure timely filing.

Belated Returns

Missed the deadline? File belated ITR with a penalty. A fee of ₹5,000 applies under Section 234F, reduced to ₹1,000 for incomes under ₹5 lakh. 

Interest Charges

If tax is due, a 1% monthly interest applies post-deadline until the ITR is filed. Ensure timely filing to avoid additional costs.

Filing Process

Belated returns are filed under Section 139(4) of the Income Tax Act. The process mirrors that of filing before the deadline.

Updated Returns

Section 139(8A) allows updated returns within 24 months of the assessment year, offering more time for compliance.

No Penalty

Updated returns do not incur penalties but require additional tax under Section 140B. This aids in accurate tax filings.

Required Forms

Updated returns must use the specific ITR forms for the relevant assessment year, accompanied by form ITR-U.

Losses Forfeited

Failure to file ITR means you cannot carry forward current assessment year losses. This can impact future tax calculations.

Penalties Imposed

Non-filing can lead to penalties ranging from 50% to 200% of the assessed tax. Compliance avoids these severe fines.

Prosecution Risk

Extreme non-compliance, especially in high-value cases, risks prosecution. Filing ITR on time mitigates legal consequences.