Income Tax News: Those who have not yet filed a belated income tax return (ITR) for FY2022-23 (AY2023-24) and missed the July 31 deadline should do so by December 31, 2023. These taxpayers were recently notified by the Income Tax Department that December 31 is their last opportunity to submit an amended or belated ITR return for the fiscal year 2022–2023.
Urgent Advisory from Income Tax Department
“Kind Attention Taxpayers, 31st December 2023 is your last chance to file a belated/revised ITR for AY 2023-2024. Hurry! File your ITR before the due date,” the Income Tax Department said in a post on social media platform X, formerly Twitter. According to Section 139(4) of the Income-tax Act, 1961, filing a late return is punishable by a fine of up to Rs 5,000, which is lowered to Rs 1,000 for small taxpayers whose combined income does not exceed Rs 5 lakh.
Accessing the Income Tax e-Filing Portal
People should log into their accounts on the income tax e-filing portal and follow the same steps as for the original ITR in order to file a belated one. During the procedure, it is important to choose section 139(4) of the ITR form. Make sure to use the forms notified for Assessment Year 2023–24, even though there isn’t a specific form for late ITR submissions.
Clearing Dues Before Belated ITR Submission
It is advisable to settle the fine, tax, and penal interest prior to starting the delayed ITR submission. Section 234A imposes a penalty of one percent per month on delinquent income tax payments, and Section 234F stipulates a penalty of rupees one thousand for small taxpayers, or Rs 5,000.
Understanding Penal Interest Calculation
It should be noted that penal interest, which is computed at one percent per month under Sections 234B and 234C, is assessed for any shortfall in advance tax payment. In addition, the Income-tax Act’s Section 139(5) specifies that the amended ITR for FY 2022–23 (AY 2023–24) must be filed by December 31, 2023. Filing a revised ITR follows the same procedure and steps as filing an original or belated ITR.
Indicating Amended ITR Submission Intent
On the ITR form, people should choose Section 139(5) and enter the original ITR’s filing date and acknowledgement number. The option to file an updated return, known as ITR-U, is still open to people who miss the December 31 deadline after the assessment year ends. ITR-U for FY 2022–23 (AY 2023–24) can be filed between April 1, 2024, and March 31, 2026. This gives people time to fix mistakes or submit returns they may have forgotten.
Navigating the Additional Tax Implications
If an ITR-U is filed during the first assessment year (April 1, 2024, to March 31, 2025), an additional 25% tax will be applied to the tax dues; if filed between April 1, 2025, and March 31, 2026, the additional tax will be 50%. Processing cannot begin until the filed ITR has been verified within 30 days; any ITR that has not been verified will be regarded as having not been filed by the income tax department.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
