How to Pay The Late Filing Penalty While Filing Belated Income Tax Returns?

If you've missed the July 31, 2023 deadline, you can still submit your income tax return (ITR) for the financial year 2022-23 (assessment year 2023-24) until December 31, 2023. 

Keep in mind that when filing late, there is a penalty as per Section 234F of the Income Tax Act, 1961. Additionally, you won't be able to carry forward losses from different sources of income, except for losses from house property, when submitting a belated ITR.

Penalties for filing your belated tax returns are as follows:

If your net taxable income is over Rs 5 lakh, the penalty is Rs 5,000. If your net taxable income is below Rs 5 lakh, the penalty is Rs 1,000. Additionally, if there is any income tax due, you will also need to pay a penalty.

How To Pay Penalty For Filing Belated Tax Returns?

To pay the penalty for a belated ITR, you have two options. You can either pay the penalty under Section 234F before you begin the process of filing the belated ITR. 

Alternatively, you can pay the penalty along with any extra tax owed when submitting the belated ITR on the e-filing portal. Make sure to manually input the details of the penalty payment in the 'tax paid' section of the ITR form. 

It is important to note that you won't be able to file the belated ITR until you provide the penalty payment details in the 'tax paid' section of the form.

When paying a penalty before filing a belated ITR, follow these steps:

• Visit the income tax e-filing portal: https://www.incometax.gov.in/iec/foportal/ 
• From 'Quick Links,' choose 'e-pay tax.'
• Enter your PAN and mobile number, then continue.
• Enter the OTP received on your mobile.
• Select the relevant assessment year (AY 2023-24 for FY 2022-23) and payment type (self-assessment tax - code 300), then continue.
• Enter the penalty amount and any additional tax dues, if applicable, then continue.
• Choose your payment method: debit card, net banking, payment gateway, offline bank challan, or RTGS/NEFT.
• Make the payment and download the generated tax payment summary challan.
• Keep this challan for reference when filing the belated ITR.

What is Belated ITR?

If any of the individuals could not file his/her original income tax returns within the specified deadline (July 31, 2023). However 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 due date, generally for filing a belated return is decided on or before the end of the appropriate assessment year. For the current year, it is December 31, 2023.

Who Can Choose the New Tax Regime in a Belated ITR for AY 2023-24?

Individuals who earn income from business or profession have the option to switch to or from the new tax regime. This choice can be exercised by informing the income tax department through the submission of Form 10-IE.

Also Read: Waiting For The Income Tax Refund! Learn About The Expected Processing Time

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