Income Tax Returns 2023: Pay Rs 5,000 if ITR filing deadline is missed

The financial year 2022–2023's income tax return must be filed by July 31. Beginning on April 1, new ITR forms for the assessment year 2023–24 will be available. People who earn more than the basic exemption threshold of Rs 2.5 lakh annually must submit their ITRs before the deadline. However, persons with taxable income up to Rs 5 lakh who qualify for exemptions are excused from paying taxes.

The Government moved up the deadline for ITR reporting from July 31 to September 30 last year for a number of different reasons. There hasn't yet been a date given for this year's extension, though.

What happens if the ITR filing deadline is missed?

Late fee: Under Section 234F, a late fee of Rs. 5,000 must be paid. If the overall income is less than Rs. 5 lakhs, it will be lowered to Rs. 1000.

Interest: If you submit your return after the deadline, you must pay interest under Section 234A at a rate of 1% each month or a fraction of a month on the outstanding tax balance.

Belated Return: If the ITR filing deadline passes without being observed, you may file a delayed return after the deadline. You won't be able to roll the losses forward for later adjustments, but you will still need to pay the late fee and interest. 

Loss Adjustment: If you have losses from investments in stocks, mutual funds, real estate, or any of your enterprises, you can carry them forward and make up the difference with the income from the next year. Your tax liability will be greatly reduced as a result. Only if you include a loss declaration in your ITR and submit it by the due date to the income tax division is a loss adjustment allowed.