Missed ITR filing deadline: Here is what you must do?

Missed ITR filing deadline: You still have options available to you, however. It is possible to submit an ITR after the deadline, but penalties and restrictions apply. For the Assessment Year 2023–2024, the Income Tax Return (ITR) filing deadline was July 31, 2023. Even though over 6,500,000 income tax returns were lodged this year, many individuals failed to take the necessary steps. You still have options available to you, however. It is possible to submit an ITR after the deadline, but penalties and restrictions apply.

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How can ITR be filed after the deadline?

The deadline for filing a late ITR for the fiscal year 2022–2023 (assessment year 2023–2024) is December 31, 2023. However, there is a cost associated with this. Section 234F of the Income Tax Act of 1961 imposes a fine of up to Rs 5,000 on those who submit their ITRs late. If your total annual income is less than Rs. 5 lakh, the late filing fee is reduced to Rs. It is essential to understand that submitting a late tax return has negative consequences.

Consequences of submitting ITR after the deadline

A number of losses, including business and capital losses, cannot be carried forward to be mitigated in subsequent years. However, losses from residential property are an exception that can be claimed even if you submit your taxes after the deadline.

Missed: ITR filing deadline- In a number of instances under the Income Tax Act, deductions or exemptions will be denied if you submit your ITR late. If you paid your taxes on time but neglected to file your tax returns, you cannot submit returns or request approval of a delay. The department of income tax may issue a notification under Section 271F for neglect to file an ITR.

If you fail the deadline, you may incur a fine of up to Rs. 5,000. If you have a valid reason for not submitting and the officer is satisfied with your explanation, you may not be required to pay the fine.

However, if you underreported your income, you could face sanctions of up to 200 percent of the tax due. In cases where the taxpayer underreported his income but paid his taxes late with interest, the assessing officer may waive the penalty. In this scenario, no penalty will be assessed to the taxpayer.

If you receive a notice from the income tax division, you must respond on the income tax e-filing website and submit an ITR to comply with the notice. Failure to comply may result in legal action and/or imprisonment for up to seven years. Despite these penalties and restrictions, you must still file your ITR late to avoid future issues.