Missed ITR Filing Deadline? Here’s What You Need To Do

September 27, 2023

In the field of personal finance and taxation, few things are as essential as filing your Income Tax Return (ITR) on time. It’s a civic responsibility and a financial necessity that ensures you comply with tax laws and avoid penalties. The Income Tax Return (ITR) submission deadline for the Assessment Year 2023–2024 was July 31, 2023. Despite the facts that over 6.5 crore income tax returns were submitted this year, many people still failed to take the proper action. Yet, you still have options available to you. Although it is possible to submit an ITR after the due date, there are penalties and restrictions.

What is ITR Filing?

Income Tax Return (ITR) filing is a mandatory financial exercise where individuals and entities report their annual income, deductions, and tax liability to the Income Tax Department of India. As per the income tax laws, the return must be filed every year by a business or individual that earns any income during a financial year. Income may come from a form of salary, business profits, or income from house property or it may be earned through dividends, capital gains, interests, or other sources.

How Do I File an Income Tax Return After the Deadline?

If you miss filing your ITR by the original deadline, then you can file a late return, known as a Belated Return. A Belated return is a return filed after the original deadline (31st July) but before the extended deadline (31st December). Taxpayers who failed to file the ITR within the provided time can still file their belated ITR with a late fee. Here is a list of options available to taxpayers in case they missed to filing the ITR on or before July 31st.

According to Section 234F of the Income Tax Act of 1961, taxpayers can file their belated ITR on or before December 31, along with a late fine of ₹ 5,000. In cases where the taxpayer’s total income is less than ₹ 5, 00,000, the penalty shall be limited to ₹ 1,000. For those whose income is below the exemption limit, there will be no late filing fee. If taxes are due, failure to file the income tax return by the deadline will attract additional interest of 1% per month until the return is filed.

Penalties up to 50% could be charged for underreporting income and up to 200% for misreporting income. Taxpayers are eligible to receive interest on excess tax deductions only after filing the ITR on time. Delayed ITR filing may result in a long wait or not receiving the tax refund.

Remember, while missing the ITR deadline can be an inconvenience, it’s a manageable situation. With the right knowledge and actions, you can get back on track with your tax obligations and maintain financial peace of mind. If the process seems difficult or you have complex financial situations, consider consulting a tax professional at the Income Tax Return Filing Agency in Kochi, Kerala, and Chennai for expert guidance.