Missed Income Tax Return Filing?

Have you Missed your Income Tax Return Filing for A.Y. 2023-24? Still you can file your Belated ITR and can Claim Refund before 31st December 2023.

What is Belated Income Tax Return?

The due date to file the income tax return for the financial year 2022-23 ended on 31st July 2023. If you were required to file the return but missed filing your income tax return within the original deadline, then you can file a late return, known as Belated Return. Belated return is a return filed after the initial deadline (31st July) but before the extended deadline (31st December).

File Belated ITR:

According to the Finance Act 2021 amendment, you can file your belated IT return anytime on or before three months before the end of the relevant Assessment Year (AY). For Example, for the AY 2023-24, the timeline to file a belated return is on or before 31 December 2023 (if income tax authorities do not complete the assessment on their own).

Income Tax Return Filing Fees

Salary income

₹1499 ₹ 999/-

Salary less than 50 lacs
House property
Withdrawal from PF & bank deposits
Donations
Dividends >10lacs
Director /Business Income

Proprietorship Income

₹1999 ₹ 1499/-

Salary less than 50 lacs
House property
Withdrawal from PF & bank deposits
Donations
Dividends >10lacs
Director/ Business Income

Capital Gains Income

₹2499/- ₹ 1999/-

Capital gains from stocks, mutual funds
Capital gains from property
Income from salary and House property
Income from House property
Gains from lottery, awards and Gift
Income earned outside India

Documents Required for Back Year Income Tax Return Filing

PAN Card
Aadhaar Card
Bank Statement
Email ID and Mobile Number
Tax Saving Investment Detail (if any)
Business name (if any)
Business Activity ( if any)
Any Other Detail

Drawbacks of late ITR filing

The following are the disadvantages 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:
- Gross total income is up to Rs 2.5 lakh: No Penalty
- Gross total income is Rs 2.5 lakh – Rs 5 lakh: Rs 1,000 fee
- Gross Total income more than Rs 5 lakh: Rs 5,000 fee
If you file a loss return after the due date, many losses, like business and capital losses, cannot be carried forward for 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.

Types of Income Tax Return Forms

There are various types of Income Tax Returns, known as ITR forms, categorized based on the nature of income and the taxpayer’s status. The most common ITR forms include:

ITR-1 (SAHAJ): For individuals having income from salary, house property, or other sources.
ITR-2: For individuals and Hindu Undivided Families (HUFs) not having income from business or profession.
ITR-3: For individuals and HUFs having income from a proprietary business or profession.
ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLP) having presumptive income from business or profession.
ITR-5: For LLPs, Association of Persons (AOPs), and Body of Individuals (BOIs).
ITR-6: For companies other than those claiming exemption under Section 11 of the Income Tax Act.
ITR-7: For persons including companies required to furnish a return under Sections 139(4A) or 139(4B) or 139(4C) or 139(4D) of the Income Tax Act.

Ensure you choose the correct ITR form based on your income sources and taxpayer category.

Important Dates for ITR for AY 2023-24

To ensure a smooth Income Tax Return filing process, it is crucial to be aware of the important dates for AY 2023-24. The following are the key dates to remember:

31st December 2023: The Last date to file belated income tax return is 31st Decemeber 2023
July 31, 2023: The last date for filing Income Tax Returns for individuals and businesses not subject to tax audit requirements.
September 30, 2023: The last date for filing Income Tax Returns for businesses and individuals requiring tax audit.
October 31, 2023: The last date for filing belated or revised Income Tax Returns for AY 2023-24.

Note that it is advisable to file your Income Tax Return well before the due date to avoid any last-minute complications or penalties.

Income Tax Refunds

If you have paid more tax than your actual liability, you are eligible for an income tax refund. The income tax department processes refunds after the successful filing and verification of Income Tax Returns. The refund amount is credited directly to the taxpayer’s bank account.
To ensure a smooth refund process, provide accurate bank account details and keep track of the refund status using the income tax department’s online portal.

How to file income tax return?

Filing Income Tax Return can be done either online or offline. The online method, known as e-filing, is more convenient and widely used. Here are the steps involved in filing Income Tax Return online:

Register on the Income Tax Department’s e-filing portal.
Choose the relevant ITR form based on your income sources and taxpayer category.
Fill in the required details in the ITR form, including personal information, income details, deductions, and tax payments.
Validate the data entered in the form and calculate the tax liability.
Pay any remaining tax liability or claim a refund if applicable.
Generate the XML file after validation and upload it on the e-filing portal.
Once uploaded, digitally sign the ITR using a Digital Signature Certificate (DSC) or obtain an Electronic Verification Code (EVC).
Receive the acknowledgment receipt (ITR-V) after successful filing.

Remember to keep a copy of the ITR-V and verify it with the income tax department to complete the filing process

Common Mistakes to Avoid

While filing Income Tax Returns, it is essential to avoid common mistakes that may lead to penalties or scrutiny. Some common mistakes to avoid include:

Entering incorrect personal details or income information.
Not reporting all sources of income.
Forgetting to claim deductions and exemptions.
Failure to verify the filed return within the stipulated time.
Not keeping track of Form 26AS and TDS (Tax Deducted at Source) details.
Delaying or missing the filing deadline.

Ensure you double-check all the details and seek professional assistance if required to minimize errors and maximize compliance.

Benefits of Filing Income Tax Return

Legal Requirement

Filing your income tax return ensures compliance with the tax laws and regulations of your jurisdiction. Failure to file can result in penalties and legal consequences.

Avoid Penalties

Late filing or non-filing can lead to penalties and interest charges imposed by the tax authorities. It is important to file within the stipulated deadlines to avoid unnecessary financial burdens.

Claim Refunds

If you have paid excess taxes or are eligible for deductions and exemptions, filing income tax returns allows you to claim tax refunds from the government.

Establish Financial History

Consistently filing your income tax return each year can help establish a positive financial history, which can be helpful when applying for loans, credit cards, or other financial products.

Proof of Income

Income tax returns act as official financial documents that demonstrate your income and tax liabilities. They are often required for various financial transactions, loan applications, visa processing, and more.

Tax Planning

Filing your Income tax return (ITR) can also help you plan for the future by allowing you to evaluate your current tax situation. Income Tax Planning is important to save tax and to maximize your refunds.

Income Tax Return for Businesses and Self-Employed Individuals

Businesses and self-employed individuals have specific considerations while filing their Income Tax Returns. They need to maintain proper books of accounts, maintain financial statements, and report their income and expenses accurately.
Additionally, they may need to fulfill specific compliance requirements based on the nature and size of their business. It is advisable for businesses and self-employed individuals to seek professional advice to ensure compliance and optimize their tax liabilities.

Income Tax Return for Salaried Individuals

Salaried individuals need to report their income, deductions, and tax liability accurately while filing their Income Tax Returns. They should gather their Form 16 issued by their employers, report income from salary, income from other sources, deductions under various sections, and tax payments made.
Salaried individuals can also claim deductions for investments made under Section 80C, medical insurance premiums under Section 80D, and home loan interest under Section 24(b).

Income Tax Return for Senior Citizens

Senior citizens have specific considerations while filing their Income Tax Returns. They may be eligible for additional tax benefits, such as higher exemption limits, deductions for medical expenses, and a reduced tax rate.
Senior citizens should carefully report their income, deductions, and exemptions while filing their returns to avail of the benefits they are entitled to.

Late Income Tax Return Filing

If the taxpayer has missed the due date of filing the Income tax return, the same can still be submitted as “belated income tax return” within the last date of the assessment year. However, the losses or accumulated depreciation cannot be carried forward, and in case there is any error the belated return cannot be revised.

Penalty For Not Filing The ITR

If you fail to file your income tax return by the due date, you may incur a penalty and interest charges. The penalty for late income tax return filing is Rs. 5,000 for returns filed after the due date but before December 31, 2023. The penalty increases to Rs. 10,000 for returns filed after December 31, 2023. However, if your total income does not exceed Rs. 5 lakh, the maximum penalty cannot exceed Rs. 1,000.

Interest is also charged on the outstanding tax liability at the rate of 1% per month or part of the month until the tax liability is paid in full.

FAQs on Income Tax Return Filing

What is Income Tax Return?

Income tax return is a document that a taxpayer files with the tax authorities, declaring his/her income, deductions, and tax liability. The tax return needs to be filed on or before the due date as prescribed by the Income Tax Department of the country. The tax authorities use the information provided in the return to assess the taxpayer’s tax liability and to determine if the taxpayer is eligible for a refund.

Who is Required to File an Income Tax Return?

Every individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), and companies are required to file an income tax return if their income exceeds the basic exemption limit. The basic exemption limit is different for different categories of taxpayers and is subject to change from year to year.

What are the Documents Required for Filing an Income Tax Return?

The following documents are required for filing an income tax return:

Form 16 or Salary Certificate issued by the employer
Form 26AS
Bank statements
TDS certificates
Investment proof for claiming deductions

What is the Due Date for Filing an Income Tax Return?

The due date for filing an income tax return varies depending on the category of taxpayer. For individuals and HUF, the due date is generally 31st July of the assessment year. However, for businesses, the due date is different, and it is advisable to check the Income Tax Department’s website for the latest due dates.

What is the Penalty for Late Filing of Income Tax Return?

If a taxpayer fails to file his/her income tax return on or before the due date, he/she may have to pay a penalty. The penalty amount varies depending on the delay in filing the return and the taxpayer’s income. For individuals, the penalty can range from Rs. 1,000 to Rs. 10,000.

Can an Income Tax Return be Filed After the Due Date?

Yes, an income tax return can be filed after the due date. However, it is called a belated return, and the taxpayer may have to pay a penalty for filing it late. The penalty amount for a belated return is the same as the penalty for late filing.

What are the Consequences of Not Filing an Income Tax Return?

If a taxpayer fails to file his/her income tax return, he/she may have to face several consequences. The Income Tax Department may levy a penalty for late filing of the return, charge interest on the tax liability, and may even initiate prosecution proceedings against the taxpayer.

Can an Income Tax Return be Revised After Filing?

Yes, an income tax return can be revised after filing. If a taxpayer realizes that he/she has made an error in the original return filed, he/she can file a revised return to correct the mistake. However, the revised return needs to be filed within a specified time frame.

What is the Process of Filing an Income Tax Return?

The process of filing an income tax return is straightforward. The taxpayer needs to follow the below steps:

Download the relevant income tax return form from the Income Tax Department’s website.
Fill in the details in the form,
Calculate the total income, deductions, and tax liability.
Pay the tax liability (if any) before filing the return.
Upload the return on the Income Tax Department’s website.
Verify the return using Digital Signature Certificate (DSC) or Aadhaar OTP within 30 day.

Is it necessary to file an income tax return if there is no tax liability?

Ans: No, it is not necessary to file an income tax return if there is no tax liability. However, if the taxpayer wants to claim a refund, he/she needs to file an income tax return.

Can I file my ITR after the due date?

Yes, you can file your ITR after the due date. But such an ITR will be considered as a belated return, and a late filing fee will be levied along with interest.

What is Belated Return Section?

A belated return is filed under section 139(4).