The ITR Filing Deadline Is Approaching Near: What Happens If You Miss The ITR Filing 31st July 2023

Income tax filing is a crucial part of being compliant with income tax rules and regulations. So taking off some time for filing your ITR ensures that you are complying with the IT department. But have you ever thought about:

“What would happen if you miss the ITR filing deadline? 

“What penalties would be imposed on you?

“What strict consequences will be applied to you?

Do not know! No worry, This article will take you through all major consequences applied to an individual (in case s/he missed the ITR filing deadline) as well as what you can do to avoid the penalties or any legal action that the IT department may take against you. 

Note: The deadline to file an income tax return (ITR) for FY 2022-23 (AY 2023-24) is July 31, 2023. 

If you are struggling to file your Income Tax Return, then contact Myitronline for reliable and efficient assistance. Myitronline is India's leading tax consultancy firm with a team of experienced professionals who can assist you in navigating the complexities of tax filing and ensuring compliance with the relevant laws and regulations. Our expertise and personalized approach make the process seamless and hassle-free.

Penalties For Missing The ITR Deadline

In case you have missed the deadline to file your income tax return (ITR) for the financial year 2022-23 (assessment year 2023-24), you still have the option to file a belated ITR. 

The deadline for filing a belated ITR is December 31, 2023, for the financial year 2022-23 (the assessment year 2023-24), unless the government grants an extension. 

A late filing fee will be imposed in case the ITR is filed after the due date of 31st July 2023 but before 31 December 2023.

If you file a tax return after the deadline, which is known as a belated tax return, a late filing fee will be imposed. Prior to the financial year 2016-17 (assessment year 2017-18), there was no penalty for filing belated income tax returns. 

However, starting from the financial year 2017-18 (assessment year 2018-19), a penalty was introduced under section 234F of the Income-tax Act, 1961. This section was subsequently amended in the Budget of 2021.

The government made an amendment to reduce the time limit for filing belated income tax returns by three months. Individuals previously had the option to file a belated ITR until the end of the applicable assessment year, which is March 31. This option was available until the financial year 2019–20 (the assessment year 2020–21). 

However, in the Budget of 2021, the government shortened the time limit by three months, making the new deadline December 31. Consequently, a corresponding amendment was made to section 234F to reduce the penalty for filing belated ITR by half.

Applicable Penal Interest 

It is important to understand that if you have any outstanding tax liability, penal interest will be levied accordingly when filing a belated return. However, if no tax is payable, you won't be required to pay this interest solely due to the belated filing of your income tax return (ITR).

According to a tax consultancy firm, if the income tax department reviews your return and determines that you need to pay additional taxes, there may be a possibility of incurring penal interest on the outstanding amount. Therefore, it is strongly recommended to file your tax return on time to avoid such situations.

How to File Belated Returns?

If any of the individuals fail to file his/her original income tax returns within the specified deadline (July 31, 2023). Then s/he will be able to file his/her revised IT returns, and the sole possibility they will now have is to file a belated return.

The procedure for filing a belated return is identical to filing a tax return on or before the due date. The primary distinction is that when filling out the appropriate ITR form, you must select "Return filed under section 139(4)" from the drop-down menu in the relevant section of the form.

Additionally, it's important to note that if you're filing a belated return for the financial year 2022-23 (AY 2023-24), you should only use the ITR forms specified for the fiscal year 2022-23 and not for any previous or subsequent fiscal years.

Is it possible to revise belated returns?

Indeed, it is possible to revise a belated return. Starting from the financial year 2016-17 (assessment year 2017-18) onwards, you are allowed to make amendments to a belated return. However, it's important to note that if you file your tax return after the deadline, you may forfeit certain benefits and be subject to a penalty.

What to do If I have made any errors while my returns?

If you have filed your belated returns but later spotted any error such as have not reported certain incomes or some deductions were not availed of in the return computation, it is possible to file a revised return. 

The deadline for submitting a revised return for the fiscal year 2022-23 (assessment year 2023-24) is December 31, 2023. It's important to note that the deadline for both filing a belated return and submitting a revised return is the same for the fiscal year 2022-23, which is December 31, 2023. 

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