• A person who has missed the last date for filing Original Income Tax Return can file belated ITR
Have you missed filing your Income Tax Return (ITR) for FY 2021-22? Hurry, now only 4 days are left as the deadline to file belated and revised ITR will end on 31st December 2022. A person who has missed the last date for filing the original income tax return can file belated ITR.
What happens if you miss to file belated ITR by the due date?
The last chance to file a late return comes with a penalty, however, no penalty will be levied on a revised return.
“Late payment of ITR is punishable under section 234F of the Income Tax (I-T) Act of 1961. For small taxpayers with taxable income of less than ₹5 lakh, the penalty is ₹1,000. Sections 234A, 234B, and 234C impose penal interest depending on the type of tax payable. Those who file late returns are similarly barred from carrying forward their losses. Taxpayers filing late returns are ineligible for interest on I-T refund, which is paid at the rate of 0.5% per month if the ITR is filed before the due date. An ITR which was submitted late can be updated. However, if you file it at the same time, you will lose the opportunity to file the correct ITR if the mistake is discovered later. Consequently, file earlier or be extra cautious if you deposit closer to December 31," said Amit Gupta, MD, SAG Infotech
Updated ITR
If a taxpayer misses the deadline for late ITR filing, he can file an updated ITR. The Finance Act of 2022 introduced a new concept of updated return, which allowed taxpayers to update their ITR within two years of filing, subject to payment of taxes.
The new form ITR-U was made available in May this year for taxpayers to update their Income Tax Return (ITR) with any income or earnings that have been filed in the original filing for the financial years beginning 2019-20. (Assessment Year 2020- 21).
Budget 2022-23 has allowed taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping rectify any discrepancy or omission.
A taxpayer will be allowed to file only one update return per assessment year.
delayed ITR
An ITR that is filed after the due date of the return is known as belated return. Under section 139(4) of the IT Act, belated returns can be filed up to 31st December of the relevant assessment year.
revised return
If a taxpayer has filed the original or belated ITR but later discovers an incorrect statement, he has the option of revising his tax return under section 139(5) of the IT Act. Revised returns can be filed by 31st December of the relevant assessment year.
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