Under income tax laws, an individual who has missed the last date to file an original income tax return can file a belated ITR. So a person who has not filed the income tax return on or before July 31, 2022, for FY 2021-22 (AY 2022-23) has a chance to file a belated ITR on or before December 31, 2022.
Similarly, if any mistake was made while filing an original income tax return, the taxpayer has a chance to correct it by filing a revised income tax return. The last date to file the revised ITR for FY 2021-22 (AY2022-23) is also December 31, 2022.
What is the process of filing belated ITR?
A belated ITR is filed under Section 139(4) of the Income-tax Act, 1961. However, the process of filing it is the same as filing an income tax return before the due date.
While filing a belated ITR, an individual taxpayer needs to ensure two things: Section 139 (4) in the tax return form is selected and the applicable penalty amount, penalty interest and taxes dues are paid.
Under Section 234F of the Income-tax Act, a penalty of Rs 5,000 is levied on an individual filing a belated ITR. However, small taxpayers with a taxable income of up to Rs 5 lakh have to pay only a penalty of Rs 1,000. This late filing fee must be deposited before you start the process of filing a belated ITR.
Penal interest is applicable if any income tax dues are payable at the time of filing the belated ITR. It is calculated at the rate of 1 per cent per month if self-assessment and advance tax are due while filing.
What is the process of filing revised ITR?
A revised ITR is filed under Section 139(5) of the Income-tax Act. Here also, the process of filing is the same as filing an original ITR.
While filing, an individual taxpayer needs to ensure that Section 139 (5) is selected while filling the applicable income tax return form and the original ITR’s number must be kept handy as it needs to be quoted in the revised ITR form.
What if you do not file a belated ITR for FY 2021-22 (AY 2022-23) by December 31, 2022?
If a taxpayer misses the last date to file a belated ITR, she has an option to file an updated ITR. The government announced this new option in Budget 2022. An individual can file an Updated ITR (ITR-U) irrespective of whether she has filed an original, belated or revised ITR or has completely missed filing the form in a particular financial year.
But an individual cannot file an updated ITR under certain situations. For instance, an individual can file ITR-U if they have missed the ITR filing process or can revise the ITR if they have not reported an income earlier, among others. However, ITR-U cannot be used to show a loss return, claim income tax refund and so on.
Ruchika Bhagat, Chartered Accountant and MD, Neeraj Bhagat & Co, says, “An updated income tax return can be filed only after the end of the relevant assessment year. Hence, if you do not file a belated ITR now, then you will be allowed to file an updated ITR from April 1, 2023. The updated ITR can be filed within 24 months from the end of the relevant assessment year. So an individual taxpayer can file an updated income tax return for FY 2021-22 (AY 2022-23) between April 1, 2023, and March 31, 2025.”
Further, an individual will be liable to pay 25% additional tax on the tax dues if ITR-U for FY 2021-22 (AY 2022-23) is filed within the first relevant assessment year — i.e., between April 1, 2023, and March 31, 2024. However, if the ITR-U is filed between April 1, 2024, and March 31, 2025, then 50% additional tax of the tax dues must be paid.
An individual can also file an updated return if they have not filed any ITR earlier and have no pending income tax dues. However, the person will have to pay a penalty for the late filing of the return under Section 234F, says Bhagat.
Once you have filed the income tax return (belated, revised or updated), make sure that you have verified the same within 30 days. If the filed ITR is not verified, the income tax department will not take it up for processing. Also, it will be assumed that you have not filed an ITR.