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Belated ITR Filing: File Your Income Tax Return By December 31, 2022

Belated ITR Filing: Make sure to file your income tax return by December 31 if you missed the deadline of July 31 to do so. Or the income tax department will serve you with a notice.

By Section 139(4) of the Income Tax Act of 1961. If you failed to file your income tax return by the deadline in July. You still have until December 31, 2022, subject to the completion of the assessment. Even while not submitting an income tax return at all is preferable, there are still some disadvantages.

Belated ITR Filing, Here are the benefits of filing a late income tax return and the disadvantages of not filing one at all.

What Is A Belated ITR?

A person will not be able to file an amended return and will instead only be able to file a belated return. If they did not submit their initial return by the deadline (July 31, 2022). The final day of the applicable assessment year, which for this year is December 31, 2022. Is the deadline for submitting a delayed return?

Belated ITR Filing
What Advantages Do Late Return Filers Receive?

  • The advantages of filing an ITR or a belated ITR are the same because they are similar to those of an initial ITR.
  • The assessee will be able to carry the loss from residential property forward with a tardy return. Other losses, however, are not permitted to be carried forward in a late return under the category Profits and Gains from Business and Profession or Capital Gains.
  • It should be noted that a late return may be amended and re-filed, but the due date is. Which is December 31, 2022, will not change.
  • The bottom line is that if someone missed filing their initial return and they had taxable income, they should speak with a tax professional and file a late return. Two fees will be assessed for late returns.
  • According to section 234A of the Income-tax Act of 1961, interest is charged at a rate of 1% per month on unpaid taxes.
  • Late fees are 1,000 rupees for incomes under 5 lakh rupees and 5,000 rupees for incomes above 5 lakh rupees.
  • No late fees are assessed when the revenue is less than the taxable threshold.

A person who is compelled to file an ITR by a specific deadline should file a belated ITR, according to Mihir Tanna, associate director of SK Patodia & Associates, a chartered accounting firm with offices in Mumbai. Certain additional regulations will apply in this situation. Such as the taxpayer’s obligation to pay additional interest (if the tax obligation is not satisfied by TDS and advance tax). The imposition of additional late filing penalties, and the imposition of some losses that cannot be carried forward.

ITR File 2022
What Are the Advantages of Filing a Late Return?

  • By submitting a return after the deadline, an assesses will largely miss out on new tax regime switching. Only individuals who submit their ITR before the deadline have the option of filing tax returns under the new tax system.
  • The assessment will also be deprived of the payment of interest on tax refunds. Subject to specific restrictions and only if an income tax return is filed and verified. Section 244A states that the income tax department pays interest on tax refunds.
  • However, there is no interest due on a refund if a return is filed after the fact.
  • In conclusion, filing a belated return is still advantageous. Especially for those who want to benefit from an ITR record but have income below the exemption limit. In this case, the late fees/charges are not applicable. These drawbacks include no interest being paid on the refund amount. No carrying forward of losses other than those incurred on house property, interest, and late penalty charges.
  • It should be noted that a person is not required by law to file an income tax return. If their income does not exceed the basic exemption before claiming any deductions. Under chapter VI A (80C/80D Others) of the Income Tax Act of 1961.
  • The income tax department may send a notice. And request that someone file their late return if they continue to fail to do so.

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