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Belated ITR filing for AY 2022-23: Last Date, Penalty and Why You Should Not Delay Income Tax Return

Belated Income tax Return filing for Assessment Year 2022-23: What is the last date, penalty and costs of late filing? Details of Belated ITR filing explained

Belated ITR filing for AY 2022-23: Last Date, Penalty and Why You Should Not Delay Income Tax Return
Belated ITR filing for AY 2022-23: When it’s about filing income tax return (ITR), it’s earlier is better.

The due date of Income Tax Return filing for Assessment Year 2022-23 ended yesterday. More than 5.8 crore returns were filed till July 31, which was the last date of ITR filing for salaried employees, individuals and HUFs whose accounts don’t need to be audited. 

Taxpayers, who missed filing their ITRs by 31 July, can now file belated returns. However, belated ITR filing comes at a cost. Here are all details you need to know about belated ITR filing for AY 2022-23.

Belated ITR filing last date for AY 2022-23

The last date to file the belated ITR for AY 2022-23 is 31 December 2022. 

Belated ITR filing penalty

According to the Income Tax rules, the penalty for belated ITR filing could be up to Rs 5,000. However, for taxpayers whose total income is not more than Rs 5 lakh in a financial year, the maximum penalty for the delay is Rs 1000.

Late filing leads to interest under Section 234A, late filing fees under Section  234F, etc. Moreover, set off and carry forward of losses (except house property loss) and claiming certain deductions under Chapter VI-A will not be allowed in case of belated ITR filing.

“We should never delay the filing of the income tax return. The first major consequence of late filing is penalty. One needs to pay a penalty for filing a belated return. Secondly, if there is tax to be paid, you will be charged interest @1% per month after the end of the due date till you pay taxes and file ITR.  Thirdly, one cannot carry forward losses. Lastly, late filing of ITR will result in late processing and your refund, if any, will get further delayed,” says Sujit Bangar, Founder,of Taxbbuddy. 

“If you miss filing your returns, you will have to not only pay the penalty of up to Rs 5,000 (up to Rs 1,000 for taxpayers with income below Rs 5 lakh) but also face other tax implications. You will not be able to carry forward losses (other than house property loss), if any, incurred during the year. Also, you need to pay interest at 1% per month or part thereof on the outstanding tax liability,” says Archit Gupta, Founder & CEO of Clear, (formerly ClearTax).

According to the latest data on Income Tax Department’s website, more than 4 crore returns have been verified by tax filers. Over 3 crores of verified ITRs have been processed by the Department till 31 July. 

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