The cut-off date for submitting the original Income Tax Return or ITR was July 31, but there’s no need to worry if you missed it. You still have options! Individuals can make use of the belated filing provision, allowing them to submit their ITR even after the deadline has passed. This way, you can ensure compliance with tax regulations and avoid any penalties.
Moreover, sometimes mistakes happen, and taxpayers may realize they missed including certain crucial information or made errors in their initial filing. The good news is that the process allows for flexibility. You can file a revised return to rectify any discrepancies or omissions in your original filing. This way, you can ensure that your tax records are accurate and up to date.
Penalty for Belated, Revised and Updated ITR
Introducing the updated return option, as per Section 139(8A) of the Income Tax Act. Recently introduced by the Finance Act, 2022, this provision allows individuals a longer duration, up to 24 months from the end of the relevant assessment year, to file their income tax return. Remarkably, this can be done even after the usual time limits for belated or revised returns have expired. Avail the benefits of the updated return to ensure accuracy and compliance with ease.
When it comes to filing a belated return as per Section 234F of the Income Tax Act, 1961, taxpayers must be mindful of the fee involved – Rs 5,000. However, there’s a glimmer of hope for those with a total income below Rs 5 lakh in a financial year, as the maximum penalty for the delay is capped at Rs 1,000.
Moreover, if there’s a pending tax payment, taxpayers will encounter an additional charge of 1 percent interest per month. This interest accrues from the original due date until the successful filing of their Income Tax Return (ITR).
When it comes to filing a revised return, there won’t be any penalty unless the assessing officer discovers intentional or fraudulent errors in the initial filing. In such cases, revision may not be allowed, and penalties could be imposed.
On the other hand, those opting to furnish an updated return won’t face any penalty or fees. However, it’s essential to be aware that according to Section 140B of the Income Tax Act, additional taxes might apply based on the updated information provided.