Bhubaneswar, Dec 30: The Income Tax Department has issued a reminder to individuals who failed to meet the July 31 deadline for filing their Income Tax Returns (ITR) for the fiscal year 2022-23. Through a tweet on the social media platform X, the department emphasized that these taxpayers are required to complete the filing by December 31, 2023.
"Kind Attention Taxpayers, 31st December 2023 is your last chance to file a belated/revised ITR for AY 2023-2024. Hurry! File your ITR before the due date," the income tax department posted on X.
It is important to verify any filed Income Tax Return (ITR) – whether belated, revised, or updated – within the following 30 days. Failure to do so will result in the Income Tax Department withholding processing.
What happens if the December 31 deadline is missed?
If the December 31 deadline for belated ITRs is not met, taxpayers have the option to file updated ITRs. The Finance Act of 2022 introduced updated returns, extending the timeframe for income return filing.
Consequences of Missing the December 31 ITR Filing Deadline
Approaching the deadline for filing Income Tax Returns (ITR), taxpayers must understand the importance of timely action. Abhishek Soni, CEO of Tax2win, emphasized that missing the initial due date on July 31 does not signify the end; there is still an opportunity through the belated return option available until December 31. However, each day beyond the initial deadline incurs additional costs.
Interest accumulates at a rate of 1% per month or part thereof for late filings, calculated from the original due date until the actual filing date, according to Soni. In addition to interest, late filing penalties are imposed under section 234F. For individuals with taxable incomes exceeding ₹5 lakh, the penalty is ₹5000; for those below, it is ₹1000. No penalty is levied for incomes less than ₹2.5 lakh, Soni added.
Income Tax Department Notifies ITR Forms 1 and 4
Meanwhile, the Income Tax Department has notified ITR forms 1 and 4, typically filed by individuals and entities with annual total incomes up to ₹50 lakh, for assessment year (AY) 2024-25. Typically, ITR forms for a specific financial year are notified by the end of March or early April. However, this year, ITR forms were notified in December.