Belated ITR Deadline, Penalty and Disadvantages: The last date for filing ITR for the financial year 2023-24 was 31 July. However, it is not that you cannot file income tax return after this. Under section 139 (4) of the Income Tax Act 1961, you are given an opportunity to file belated tax return.Â
You can file Belated ITR till 31 December. But for this you have to pay a penalty as late fee. If the annual income of the taxpayer is less than Rs 5 lakh, then he will have to pay Rs 1,000 as late fee. On the other hand, if the annual income is more than Rs 5 lakh, he will have to pay a late fee of up to Rs 5,000. Apart from this, there are many types of losses, about which many people are not aware. Know about it here-
Loss cannot be carried forward
If you file a belated ITR, then you do not get permission to carry forward the loss to the next year. Whereas in normal circumstances, you can carry forward the loss for 8 years.
No interest on refund
The department does not pay interest to those who file belated ITR. Let us tell you that on filing ITR on time, the taxpayer gets interest at the rate of 0.5 percent per month on the amount till the date of refund.
Payment of Penal Interest
If any tax is due at the time of filing belated ITR, then he will have to pay penal interest. It is levied at the rate of 1% per month. Penal interest is levied under sections 234A, 234B and 234C depending on the type of tax due.
Refund comes late
If your tax refund is made after filing belated return, then it is received late. Due to delay in ITR filing, processing will be delayed and refund will come late.
Option of Old Tax Regime is not available
In belated ITR, you do not get the option to choose Old Tax Regime. In such a situation, you have to file return under the new tax regime even if you do not want to. Let us tell you that those taxpayers who want to save tax by taking advantage of deduction, they choose the old tax regime. But with the deadline, this option also goes out of their hands.
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