What to do if you have missed the income tax return filing deadline of July 31? penalty and costs of late filing? Details of Belated ITR filing explained

The last date to file income tax return for FY 2021-22 (AY 2022-23) was July 31, 2022. However, an individual can file ITR even if this deadline of filing ITR is missed. The income tax return filed after the deadline is called belated ITR. One will have to pay a late filing fee when filing a belated ITR.
Here is what you need to know about filing a belated tax return.

What is the penalty amount of Belated ITR filing?

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 ITR filing 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.

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.

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 ITRs have been processed by the Department till 31 July.