Belated Income Tax Returns for A.Y 2023-24

As the next financial year comes to a close, the last date for filing belated Income Tax Returns (ITRs) for the Assessment Year 2023-24 is approaching. In this blog post, we will explore the significance of filing belated ITRs, the consequences of missing the deadline, and some essential tips to ensure a smooth and compliant tax filing process.

Understanding Belated Income Tax Returns

A belated return is filed when a taxpayer fails to file their ITR by the original due date, which is typically July 31 of the assessment year. The Income Tax Department allows individuals to file belated returns until a specified date, providing an opportunity for those who missed the initial deadline.

Key Dates for A.Y 2023-24

For the Assessment Year 2023-24, Taxpayers need to mark their calendars and ensure compliance with the following key dates:

1. Original Due Date: The regular deadline for filing ITRs for A.Y 2023-24 was likely July 31, 2023. This serves as a reminder for taxpayers to meet their tax obligations on time.

2. Last Date for Belated ITRs: The Income Tax Department provides an avenue for individuals who miss the initial deadline to file their returns. This window is known as the "belated return" period. For the A.Y. 2023-24, the last date for filing belated returns is December 31, 2023.

Penalty for Filing Belated Returns

While the belated return option provides a lifeline for those who miss the original deadline, it comes with its set of consequences. One of the primary drawbacks is the imposition of a penalty under Section 234F of the Income Tax Act. 

Quantum of fees that can be levied under 234F

• No late filing Fees applicable in case total income does not exceed Rs. 2.5 Lakh. But in case,
• Total income > 5 Lakhs & return is filed after the due date, Fee = Rs. 5000
• Total income <= 5 Lakhs & return is filed after the due date, Fee = Rs.1000.
  
  All persons including individuals, HUF, Company, Firm, AOP etc. will be covered under the scope of Section 234F of Income Tax Act 1961. All persons will be liable to pay late filing fees when the Income Tax Return is filed after their respective due dates.

How to pay 234F Fees

For the payment, one need to select challan no 280 than under type of payment select “Self assessment (300)” and mentioned amount of payment under column “others”.

Repercussions of filing belated Return

The following are the Repercussions of filing a belated return:

• Interest may be applicable under sections 234A, 234B and 234C.
• A late fee will be levied under Section 234F while filing a belated return
• If you have incurred losses, like business and capital losses, they cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late.
• Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.