Income Tax Department has issued a reminder to taxpayers

The Income Tax Department has issued a reminder to taxpayers who missed the July 31 deadline for filing their Income Tax Returns (ITR) for the financial year 2022-23.

Through a post on social media platform X, the department conveyed that these taxpayers now have until December 31, 2023, to submit their belated or revised ITR for Assessment Year (AY) 2023-2024.

It is crucial to note that any filed ITR, whether belated, revised, or updated, must be verified within the next 30 days; otherwise, the Income Tax Department will not process it.

If individuals fail to meet the December 31 deadline for belated ITRs, they still have the option to file updated ITRs. The Finance Act of 2022 introduced updated returns to provide taxpayers with additional time to complete the filing process.

Consequences of Missing the December 31 ITR Filing Deadline:

As the deadline approaches, taxpayers should understand the importance of taking timely action. According to Abhishek Soni, CEO of Tax2win, missing the initial deadline of July 31 doesn’t mean the end of the road; there is still an opportunity to file a belated return until December 31. However, each day beyond the initial deadline incurs additional costs.

Late filing consequences include:

1. **Interest:** Interest accrues at a rate of 1% per month or part thereof for late filings. This interest is calculated from the original due date until the actual filing date.

2. **Penalties:** Late filing penalties are imposed under section 234F. For individuals with taxable incomes exceeding ₹5 lakh, the penalty is ₹5000; for those below, it’s ₹1000. No penalty is levied for incomes less than ₹2.5 lakh.

Additionally, the Income Tax Department has notified ITR forms 1 and 4 for Assessment Year 2024-25, which are typically released by the end of March or early April. This year, the forms were notified in December itself.

Note: The information provided is based on individual analysts’ views and recommendations. Investors are advised to consult certified experts before making any investment decisions.

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