Missed your ITR date? December 31 is your last chance

As we near the end of the year, it's time to review your finances, especially for those who haven't yet filed their Income Tax Returns (ITRs), for the fiscal year 2022-2023. The deadline of December 31, 2023, is the final chance to fulfill this obligation. Late filing incurs penalties and interest, which can have serious consequences. Let's explore what delaying filing might entail.

The original deadline for submitting tax returns for the fiscal year 2022-2023 was July 31, 2023. However, individuals now have until December 31 to file their ITRs. Remember, this deadline applies to all taxpayers, including individuals and corporations, whether they are undergoing audits or not.

Failing to file returns by the due date incurs a late filing fee under Section 234F of the Income Tax Act. The penalty is Rs5,000 for those missing the deadline, but it's reduced to Rs 1,000 for taxpayers with a total income below Rs5 lakh. Additionally, late filers will face interest charges under section 234A, at a rate of 1 per cent for each month or part of a month on the unpaid tax amount.

Not filing ITRs altogether has serious repercussions. It prevents carrying forward losses and can lead to penalties ranging from 50 per cent to 200 per cent of the assessed tax, depending on non-compliance severity. Even after missing the December 31 deadline, updated returns can be filed within 24 months of the relevant assessment year. However, this incurs additional income tax liability as per Section 140B of the Income Tax Act, but no penalties or fees.

Filing updated returns using the appropriate ITR forms and ITR-U is essential, but it cannot be done for claiming tax refunds. Stick to the original deadline for refund claims. Failure to comply might result in legal consequences, including prosecution for severe discrepancies. Fulfilling tax filing obligations is crucial to avoid such scenarios.