Belated ITR filing: Last date, penalty levied and other details

The due date of income tax return (ITR) filing for the assessment year 2022-23 ended on July 31. Taxpayers, who missed filing their ITRs by the deadline, can still file returns. However, belated ITR filing comes at a cost.

The last date to file the belated ITR for AY 2022-23 is December 31, 2022.

An individual is required to deposit the late filing fee as applicable using challan number 280. The payment can be made online on the NSDL website or by visiting the bank branch.

For filing, the process is the same as filing the original return.

A fee of Rs 5,000 is levied under section 234F of the Income Tax Act, 1961 for filing a belated return. 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.

Also, if there is tax to be paid, taxpayers will be charged interest at 1 percent per month after the end of the due date till they file ITR.

Additionally, taxpayers cannot claim certain deductions under Chapter VI-A in case of belated ITR filing. They are not eligible to carry forward the losses they incurred from any capital expenditure or other financial losses. Only the loss from the sale of property may still be carried forward.

Now, if taxpayers do not file ITR at all, they will not be able to carry forward the losses of the current assessment year. Also, a penalty may be levied, which is a minimum of 50 percent of the assessed tax or a maximum of 200 percent of the assessed tax.

Additionally, an assessee may have to face prosecution (i.e. imprisonment for a term up to 7 years and a fine) in extreme and high-value cases. This happens when wilful default to furnish the return of income and tax payable (after reducing taxes paid and TDS) exceeds Rs 10,000.