The due date of Income Tax Return filing for Assessment Year 2022-23 ended 31st July 2022. More than 5.8 crore returns were filed till July 31, which was the last date of ITR filing for salaried employees, individuals and HUF whose accounts don’t need to be audited.
Taxpayers, who missed filing their ITR 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 Taxbuddy.
“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 Clear Tax).
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 ITR have been processed by the Department till 31 July.
After extending the due date of filing Income Tax Return (ITR) by months in the last two assessment years – mainly due to the COVID-19 pandemic – the Income Tax Department this time is trying to put the things in place by sticking to the original due date of July 31, 2022, even as the Central Board of Direct Taxes (CBDT) is closely monitoring the ground situation before taking any decision on ITR due date extension.
While the CBDT has found no merit in the argument that a section of taxpayers are confused as the due date of filing return for the current Assessment Year (AY 2022-23) comes within seven months of the extended due date of the last year (AY 2021-22), which was extended till December 31, 2021, the Department may consider a date extension after a problem in ITR-2 has been reported to it.
The problem surfaced when the attempts to validate ITR-2 of a senior citizen taxpayer – drawing regular income through systematic withdrawal plan (SWP) in debt-oriented mutual fund (MF) schemes along with investments in senior citizen schemes – failed before submission of the return online on the income tax portal on July 30, 2022.
While the validation errors in the Tax Paid page were resolved, those in the Schedule Capital Gain page were not. Despite entering quarter-wise information on short-term capital gains on sale of debt funds repeatedly in Section F of the page (information about accrual/receipt of capital gain) the online tax filing utility failed to add the figures to calculate the total gains to match with the figures in the Schedule BFLA page.
The issue was brought to the notice of CBDT at around 11.30 pm, following which, the CPC tried to guide the taxpayer through an online meeting around midnight, but the link to join the meet became inactive by the time the required app was installed.
You must be logged in to post a comment.