The deadline for filing Income Tax Return (ITR) for the financial year 2023-24 is July 31, which is now almost over. According to the data of the Income Tax Department, more than five and a half crore people have filed ITR so far.
But, still many people have not filed their ITR. This means that a large number of people will not be able to file ITR by July 31.
Let us know what will happen if you do not file ITR before the deadline. You will get time to file ITR and how much penalty will you have to pay.
Belated returns can be filed till 31 December
According to the rules of the Income Tax Department, taxpayers can file returns even after the deadline of July 31. For this, you have to file a belated return under section 139 (4) of the Income Tax Act 1961. This belated return can be filed 3 months before the end of the current assessment year i.e. till 31 December 2024.
A fine of up to 5 thousand rupees will be imposed
If you are unable to file ITR by July 31, you can file belated return by paying late fee. If your annual income is more than Rs 5 lakh, then the late fee will be Rs 5000. At the same time, for taxpayers with income less than Rs 5 lakh, the fine amount can be up to Rs 1000, not more than that.
Disadvantages of filing ITR late
- If you file a belated ITR, the loss will not be allowed to be carried forward to the next year. In normal circumstances, you can carry forward the loss for 8 years.
- If you file a belated ITR, you do not get any interest on the refund amount. On the other hand, taxpayers who file ITR on time are given interest at the rate of 0.5 percent per month on the refund amount.
- If any kind of tax liability arises while filing belated ITR, then interest i.e. penal interest will be charged as a penalty. It is charged at the rate of 1 percent per month.
- Refund will also be delayed if you file a belated return. There is a process to verify it and the longer you delay filing your ITR, the later you will get your refund.
