Deadline to file belated, revised income tax returns to end on Dec 31 — Key things
- December 25, 2022
- CA Chandan Agarwal's Office
ITR Filing: While the deadline to file one’s original income tax return (ITR) ended on July 31, individuals can still file belated, updated and revised returns. Read this to understand further
The deadline to file the belated and revised income tax returns (ITRs) for FY 2021-22 (AY 2022-23) will end on December 31, 2022. This means taxpayers only have nine days left. Under income tax laws, an individual who has missed the last date to file an original income tax return can file a belated ITR. Similarly, when someone files their return but later realises that they have missed some information or not disclosed something completely, they can file a revised return.
Filing belated returns
Filing belated returns comes at a cost. A fee of Rs 5,000 is levied under Section 234F of the Income Tax Act, 1961, for filing a belated return. For taxpayers whose total income is not more than Rs 5 lakh in a financial year, the maximum penalty for the delay is Rs 1,000.
Also, if there is tax to be paid, taxpayers will be charged interest at 1 percent per month after the end of the due date till they file ITR.
This is filed under Section 139(4) of the Income-tax Act, 1961. However, the process of filing it is the same as filing an income tax return before the due date.
Filing revised returns
No penalty is levied for this, but if the assessing officer discovers that the error was intentional/fraudulent, revision of the return is not allowed, and a penalty may be levied.
This can be filed under Section 139(5) of the Income-tax Act. The process of filing is the same as filing an original ITR.
Now, what happens if taxpayers miss these deadlines too?
If taxpayers miss the last date to file belated ITRs, they can file updated ITRs. The Finance Act of 2022 has introduced the concept of updated returns to allow a longer duration for an assessee to file the return of income. An updated return can be filed within 24 months from the end of the relevant assessment year (subject to certain conditions). It can be filed even after the expiry of time limits specified for the filing of a belated return or revised return of income.
An updated income tax return can be filed only after the end of the relevant assessment year. Hence, if taxpayers do not file belated ITRs now, then they will be allowed to file an updated ITR from April 1, 2023, only.
A penalty or fee is not levied upon a person who wishes to furnish an updated return. However, they will be required to pay an additional tax in accordance with Section 140B of the Income Tax Act.
A taxpayer will be liable to pay 25 percent additional tax on the tax dues if ITR-U for FY 2021-22 (AY 2022-23) is filed within the first relevant assessment year — i.e., between April 1, 2023, and March 31, 2024. However, if the ITR-U is filed between April 1, 2024, and March 31, 2025, then 50 percent additional tax on the tax dues will have to be given.
A taxpayer must furnish an updated return in those ITR forms which were notified for the respective assessment year for which an updated return is to be furnished. Such an ITR form will be filed along with the newly notified form ITR-U.
Source: https://www.cnbctv18.com/personal-finance/itr-deadline-to-file-belated-revised-income-tax-return-dec-31-penalty-how-to-file-15490691.htm
