Late for the December 31 ITR Deadline? Explore Options for Filing Your IT Returns

Income Tax Returns (ITR): Taxpayers have several opportunities to complete their Income Tax Returns. The deadline for filing Income Tax Returns (ITR) for the financial year 2022-23 was December 31. Individuals who didn't file by the initial deadline of July 31, 2023, were required to do so by December 31. However, if someone misses this deadline, there's still a way to prevent receiving a notice from the IT department.

According to income tax laws, it is the responsibility of every conscientious citizen to file their ITRs annually. Beyond meeting this obligation, taxpayers can use the process to claim refunds for any excess taxes paid or deducted during the fiscal year.

After Filing Belated ITRs

If a taxpayer misses the deadline for submitting a late return due to valid reasons, they can seek approval for a condonation of delay from the Central Board of Direct Taxes u/s 119 of the Act.

Condonation of delay in filing ITR is a specific relief provided by the Income Tax Department for taxpayers who file their ITR late or verify it late. To avail of this provision, taxpayers must submit a condonation request for the delay in filing ITR through the e-filing portal.

Subsequently, if the income tax officers find it appropriate, they may accept the request and offer the taxpayer a second chance to file the ITR. Although there is not a specified time limit for submitting the condonation request, it's crucial to do so promptly upon realizing any delay in filing or verifying the ITR.

Taxpayers need to understand that there's no guarantee that the condonation request will be accepted. The decision rests solely with the discretion of the Income Tax Department. If the department finds the reason for the delay valid, it may grant a condonation of the delay.

Note: If your condonation request is rejected, consider filing an Updated Income Tax Return (ITR-U), introduced in the Union Budget 2022. This allows taxpayers to rectify errors or omissions within two years from the end of the relevant assessment year. Section 139(8A) of the Income Tax Act provides this two-year window. The ITR-U aims to enhance tax compliance without resorting to legal measures. File an Updated Return if the original filing was missed, inaccuracies occurred in income details, or adjustments are needed for losses, depreciation, or tax credits under section 115JB/115JC.

It is worth noting here that there are 24 months for filing the ITR-U form from the end of the relevant AY. For the financial year 2022-23 (AY 2023-24), you can update the return until March 31, 2026.

What Would Be The Penalties and Late Fees?

Under Section 234F of the Income Tax Act, individuals failing to submit their returns by the deadline face a late filing fee. For those missing the due date (July 31), the penalty is Rs 5,000. However, individuals with a total income below Rs 5 lakh receive a reduced penalty of Rs 1,000.

Furthermore, interest is charged on belated filings. Late filers are subject to interest under section 234A, at a rate of 1% for each month, or part of a month, on the unpaid tax amount.

For Updated Returns (ITR-U), an additional tax of 25% or 50% on the tax amount is applicable, depending on when the return is filed.

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