Attention! Missed July 31 ITR filing deadline for FY 2022-23? File your belated ITR by December 31

If July 31 slipped through your fingers, leaving your FY 2022-23 Income Tax Return (ITR) unfiled, fear not! The window isn’t closed just yet. You have the chance to make things right and get compliant, but the window to fix it stays open only until December 31, though it might involve a penalty.

What is a belated ITR? "Section 139(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘IT Act’) mandates eligible taxpayers to file their tax return on or before the prescribed due date (i.e., 31st July, 31st October or 30th November of relevant Assessment Year). However, any taxpayer who has not furnished the return of income within the aforesaid time period shall be eligible to furnish a belated return u/s 139(4) of the IT Act, subject to payment of applicable late fees and interest. Such belated return can be filed 3 months prior to the end of the relevant assessment year (i.e., 31st December 2023 w.r.t. AY 2023-24) or before the completion of the assessment, whichever is earlier," said Dr. Suresh Surana, Founder of RSM India.

To file a belated ITR online for the financial year 2022-23, here are steps which are easy to file and anyone can fill out without any fail:

1. Login: Go to the official e-filing website for income tax and use your credentials to enter.

2. Select ITR Form: Click on the e-File

3. Fill in Details: Fill in the form with accurate information such as income, deductions and tax payments. Fill out all the necessary schedules and annexures.

4. Verify Details: Check and re-check all the information entered to prevent mistakes. Make sure your PAN, bank details and contact information are accurate.

5. Calculate Tax and Pay if Due:  Calculate your tax liability. If you have any tax due, pay it by the specified online payment methods.

6. Submit ITR:  In case the taxpayer opts for “Online”, the taxpayer would be required to file return on the website itself. Once all the details have been checked and any outstanding taxes paid, submit your completed ITR form.

7. Generate ITR-V: After the ITR is successfully submitted, download the ITR-V (Verification) form. It is an acknowledgement of filing.

8. Verify ITR: Mail the signed ITR-V to the Centralized Processing Center (CPC) within 120 days from e-filing. Alternatively, you can e-verify your return using either Aadhaar OTP or net banking to bypass sending the physical copy.

"It is pertinent to note that taxpayers should specify the filing type as revised as well as they would need to enter the “Acknowledgement Number” and “Date of filing” of the Original Return filed," said Surana.

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Penalty and penal interest: Taxpayers who fail to furnish their return of income on or before the due date u/s 139(1) of the IT Act would be liable to a penalty of Rs 5000 u/s 234F of the IT Act. The same shall be reduced to Rs 1,000 for taxpayers whose total income does not exceed Rs 5,00,000. Also, the taxpayer would be liable to pay simple interest u/s 234A of the IT Act at the rate of 1% for every month or part of a month, commencing from the date immediately following the due date and ending on the date of furnishing of the return. 

"The taxpayer may not be eligible to carry forward certain losses (except loss from house property) for set-off or claim specified exemptions/ deduction in case of furnishing of belated return," added Surana.

Remember to retain all documents and receipts concerning your income, deductions, and tax. Tax professionals can provide accurate advice if you have complicated financial situations and uncertainties or need highly tailored guidance based on your circumstances.