File belated ITR for FY 2021-22 by December 31 to avoid penal action


December 31, 2022, will be the last date for filing belated Income Tax returns for the financial year ended 31.3.2022 (assessment year 2022-23). Post December 31, it will not be possible to file the belated returns and it will attract additional liability.

The only option will be to file an updated return under section 139(8A) of the Income Tax Act [subject to certain conditions and restrictions stated therein] with additional liability of 25% of the aggregate amount of tax and interest, he said. Failure to file the returns may lead to prosecution under section 276CC of the Act.

With the complete digitisation of all the data of every entity, it has become very easy for the Income Tax department to identify non-filers of tax returns and to initiate proceedings against them.

Income Tax Act mandates all partnership firms, Limited Liability Partnerships and companies to file Income Tax returns, irrespective of whether they were dormant with no activity or no transaction during the period.

So, such entities should make sure they file returns showing nil income before December 31, to avoid any penal consequences, he added.

What happens if you miss filing belated ITR?

  • In case you missed filing the belated ITR on due date, then the last chance for filing late returns comes with a penalty, however, no penalty will be levied on revised returns. A penalty of Rs 5,000 will be charged for the delay in filing returns if the total income to be reported exceeds Rs 5 lakh. For small taxpayers, if the total income of the person is less than Rs 5 lakh, then the fee payable is up to Rs 1,000.
  • During Budget 2022-23, the Centre has allowed taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping correct any discrepancy or omissions.
  • If the taxes are not filed on time, then the Income Tax department can send a notice, demanding the individual to pay a return on income within a stipulated time period.
  • The I-T authorities can initiate prosecution under section 276CC against the defaulting taxpayer, depending on the amount of tax evaded and the number of times this has happened.
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