Missed the July 31 Deadline for ITR Filing: Due to the increase in ITR filings and the officials’ refusal to grant an extension, it appears that taxpayers have no choice but to complete the task within the next few days.
31 July is the deadline for filing income tax (I-T) returns for the fiscal year 2022-23 (assessment year 2023-24). The Internal Revenue Service has advised taxpayers to submit their returns as soon as possible and not wait until the last minute. According to Union Finance Minister Nirmala Sitharaman, 7.4 crore businesses and individuals have already lodged their income tax returns.
“The number of individuals filing income tax returns increased by 6.18 percent in FY22-23 compared to FY21-22,” Sitharaman reported in the Lok Sabha on Monday. Given the increase in ITR filings and the finance ministry’s top official’s dismissal of the need for an extension, it appears that taxpayers have no choice but to complete the task within the next few days.
Missed the July 31 Deadline for ITR Filing: What Happens If the ITR Deadline Is Missed?
The annual filing of Income Tax Returns (ITR) is required by Section 139 of the Income Tax Act. However, it should be noted that ITR becomes mandatory for individuals only when their total income exceeds the exemption threshold. In accordance with Section 139(1), the ITR must be filed by the deadline specified. Historically, the deadline for filing IT returns has been July 31, but this date is subject to change based on a decision made by the government.
According to the I-T department, violating this deadline could result in a Rs 5,000 fine under Section 234F. However, if your annual gross income is less than Rs 5 lakh, the penalty is reduced to Rs 1,000.
In addition, if you are obligated to pay taxes and fail the ITR deadline, the amount due will accrue interest until it is paid. In accordance with section 234A, the taxpayer is required to pay straightforward interest of 1% per month or fraction of a month for failing to file their income tax return on time.
Interest Loss On Refunds
The only method to claim a refund for excess taxes deducted is by filing income tax returns. In addition, taxpayers are entitled to interest on refunds, similar to the interest levied on delinquent taxes, provided they file their returns within the prescribed timeframe. The refund accrues interest at a rate of 0.5 percent per month from April 1 until the refund date.
In accordance with Section 244A of the Income-tax Act, if the refund relates to an excess payment of TDS or TCS or Advance Tax, the interest on the refund will be applicable from April 1 of the relevant year to the date of refund issuance, provided the income tax return (ITR) is submitted by the due date.
If you submit your tax return after the deadline (July 31), interest will be calculated on the refund from the date you actually file the return to the date the refund is issued. It will not be calculated from April 1, as it would have if the return had been filed on time.
Punishment Under Section 234E
Individuals who fail to file TCS or TDS statements by the due date must pay a fine between Rs 10,000 and Rs 1,000,000 under Section 234E. Section 234E imposes a penalty of Rs 200 per day until the TCS or TDS is paid.
According to Section 276CC of the Income Tax Act, failure to submit a tax return may result in imprisonment for a period between 6 months and 7 years. However, the Finance Act 2022 introduced an amendment that, beginning in AY 2022-23, no such prosecutions will occur if an updated return is filed within the timeframe specified in Section 139(8A). The deadline for submitting an amended return for AY 2022-23 (FY 2021-22) is March 31, 2025.
Missed the July 31 Deadline for ITR Filing: File Delinquent Tax Returns If You Miss the Due Date
Section 139 of the Income Tax Act of 1961 contains various provisions relating to the late submission of income tax returns. According to the income tax website, if the ITR is not filed by the due date specified in section 139(1), it is deemed a belated return and must be filed in accordance with section 139(4).
The I-T department states, “A belated return may be filed at any time three months prior to the end of the relevant assessment year or prior to the conclusion of assessment, whichever occurs first.”
However, it also details the consequences of filing late. According to the department of income tax, a delay in submitting the return may result in the following consequences:
Loss (other than under the head ‘income from residential property’) cannot be carried forward.
- Interest imposed under section 234A
- Tax imposed under Section 234F
- There are no exemptions under sections 10A and 10B.
- No deduction under Part C of Chapter VI-A is allowed.
Updated Return
Under Section 139(5) of the Income Tax Act, if a taxpayer submits documents with an error or omission due to an honest blunder, they have the option to file a revised return. The revised return filing deadline is December 31, after the assessment procedure has been completed. Within this timeframe, even a late return can be revised, and if necessary, a revised return can be revised again to correct any errors discovered in the first revision.
Nil ITR Filing: Do You Need to File Income Tax Return if Earning Less Than Rs 2.5 Lakh?
Missed the July 31 Deadline for ITR Filing: Revised Return
The Finance Act of 2022 added Section 139(8A), which permits taxpayers to report their actual income even after the deadline for filing late or amended tax returns. Taxpayers may submit an amended return within 12 months after the end of the assessment year, subject to a 25% tax rate. However, certain restrictions apply, including the inability to declare losses, reduced tax obligations, and ongoing search/survey procedures. Once an amended return is filed, a subsequent amended return for the same year is not permitted.
- Section 234F is applicable if you miss the ITR filing deadline and wish to submit the ITR after the deadline has passed. This could result in a Rs 5,000 fine.
- Section 234A is applicable if the ITR is submitted late. The government charges 1% interest per month on delinquent balances.
- Section 244A entitles you to interest on excess refunds of TDS, TCS, or Advance Tax. It only applies if the ITR is lodged by the deadline and is calculated from April 1 to the date the refund is issued.
