Everything to Know about Belated ITR

The deadline to file ITR for the fiscal year 2021-22 was July 31, 2022. A tax return filed on or before July 31 is referred to as Original ITR. However, if one misses the deadline and wants to file their Income tax return after the deadline they can still file their ITR through Belated ITR. Along with filing a late ITR, the payer is required to pay a late ITR filing fee.

What is Belated ITR?

If an individual misses the original due date for filing a tax return, they can file a late ITR, known as Belated ITR to avoid any negative action from the income tax department. It is filed in accordance with Section 139(4) of the Income-tax Act.

However, taxpayers must pay a penalty if they file a belated ITR. The penalty is imposed in accordance with Section 234F of the act. The penalty will be Rs 1,000 or less for small taxpayers whose total income does not exceed Rs 5 lakh. Others must pay Rs 5,000. If your gross total income is less than Rs 2.5 lakh, there is no penalty.

The deadline for filing a belated ITR is December 31, 2022. As a result, an individual can file a late ITR at any point between August 1, 2022, and December 31, 2022, but with a penalty. If a person misses this deadline as well, he or she will be unable to file an ITR until the income tax department sends a tax notice.

Disadvantages of filing Belated ITR

Though the purpose of a belated return is to give taxpayers who missed the deadline due to unforeseen circumstances, there are three primary disadvantages to filing a belated return :

1. Unpaid taxes will be levied interest at 1% each month under section 234A.

2. Late fees of ₹1,000 are imposed for incomes less than 5 lakh and ₹5,000 for incomes greater than 5 lakh under section 234F.

3. Many return of loss, such as capital and business losses, cannot be carried forward for setting off in later years if the return of loss is submitted after the due date.

4. Also, for filing belated ITR the tax department has shortened the e-verification time limit to 30 days.

According to current income tax laws, an individual cannot claim the benefit of the new tax regime if they file a late ITR. Not only will you have to pay taxes under the old tax scheme if you file a late ITR, but you may also face a greater income tax burden.