What happens if you miss filing the belated ITR by the due date?

The last chance for filing late returns comes with a penalty, however, no penalty will be levied on revised returns.

If ITR for the assessment year 2022-23 has not been filed by 31st December 2022, then there is no option to file ITR for the AY 2022-23 as of yet.  Archit Gupta, Founder and CEO, Clear said some repercussion may be faced by the non filers are -

1) Denial of VISA as ITR has not been filed

2) Department can start proceedings on the assumption that the non filer has sort to evade his/ her income for the assessment year and may charge penalty which can be as high as 200% of the tax amount aside form the taxes and interest

3) If non filing is continuous for 2 years then the non filer may face higher amount of tax deduction form all his income (except salary income)

“Paying a late ITR is punishable under Section 234F of the Income-Tax (I-T) Act of 1961. Assessees must incur a late filing penalty of up to ₹5,000. For small taxpayers with taxable income of less than ₹5 lakh, the punishment is ₹1,000. Sections 234A, 234B, and 234C impose penalty interest, based on the type of tax payable. Those who submit late returns are likewise prevented from carrying their losses forward. Taxpayers who file a late return are disqualified for interest on I-T refunds, which are paid at a rate of 0.5% per month if the ITR is filed well before due date. An ITR that was submitted late can be updated. Nevertheless, if you file it at the very minute, you will lose the opportunity to file a corrected ITR if you uncover a mistake later. As a result, file earlier or be extra cautious if you submit close to December 31," said Amit Gupta, MD, SAG Infotech

Updated ITRs

If a taxpayer misses the deadline for filing a late ITR, she or he can file an updated ITR. The Finance Act, of 2022 introduced a new concept of updated returns, which permitted taxpayers to update their ITRs within two years of filing, subject to payment of taxes.

New form ITR-U was made available in May this year for taxpayers to update their income tax return (ITRs) with any income or earnings that may have been skipped in the original filings for fiscal years starting 2019-20 (the assessment year 2020-21).

The Budget 2022-23 has permitted taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping correct any discrepancy or omissions.

A taxpayer would be permitted to file only one updated return per assessment year.

 

Belated ITRs

An ITR which is filed after the due date of return is known as a belated return. Belated return can be filed till 31 December of the relevant AY u/s 139(4) of IT Act.

 

Revised Return

If a taxpayer has filed original or belated ITR but later discovers a wrong statement, they have the option to revise their tax return under section 139(5) of the IT Act. Revised returns can be filed till 31 December of the relevant AY.