Income Tax Department has issued an update, stating that the last date to file the return of income for the AY 2023-24 (FY 2022-23)

 Income Tax Department has issued an update, stating that the last date to file the return of income for the Assessment Year 2023-24 (Financial Year 2022-23) under section 139(4) or 139(5) of the Income Tax Act is December 31, 2023. The department urges taxpayers to file their returns before the deadline expires.

What is Belated Return?

A belated return is a return filed after the initial deadline (31st July) but before the extended deadline (31st December of the assessment year). While late filing has consequences, it’s still better than facing potential penalties for non-compliance.

The due date to file income tax return for the Financial Year 2022-23 ended on 31st July 2023. If you missed filing your ITR within the original deadline, then you can file a late return, known as Belated Return. 

Filing ITR for Previous Years

If you missed filing ITR for previous years, you can file a belated return on or before 31st December of the relevant assessment year. For Example, for the AY 2023-24, the timeline to file a belated return is on or before 31 December 2023 (if income tax authorities do not complete the assessment on their own). 

In case you miss the belated return deadline, then you may file in certain specified cases.

The amendment vide Finance Act 2021 reduced the timeline of filing the belated return. With effect from AY 2021-22, you can file the belated return three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Drawbacks of Filing Late Return

The following are the disadvantages of filing a belated return:

Interest may be applicable under sections 234A, 234B and 234C.

A late fee will be levied under Section 234F while filing a belated return: 

Gross total incomeLate fee

up to Rs. 2.5 lakh No Penalty

Rs. 2.5 lakh – Rs. 5 lakhRs 1,000

more than Rs. 5 lakhRs 5,000

If you have incurred losses, like business and capital losses, they cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late.

Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.