Why is belated ITR is different from regular ITR?

Why Belated ITR is different from Regular Income tax return?

• The best option way to file an income tax return is always before 31st July, we clarify further what comes after missing the deadline for filing an Income tax return.
• The due date for filing an income tax return is 31st July 2022 declared by the income tax department it is compulsory for every taxpayer with a yearly income more than Rs 2.5 lakh. Still some taxpayer might face difficulty in filing an ITR and not able file ITR in within the time period of 31st July.

How belated return is different from revised return?

• A belated return must be filed if the taxpayer’s income tax return was not filed by the due date required or within the given timeframe stated in a notification issued by an assessing officer. A revised return may be filed if the assessee finds any errors, mistakes, or false statements or any omission, fault or wrong statement
• While a belated income tax return is submitted after the due date. In that situation, they have timeline 31st Dec 2022, to submit a late income tax return. But a normal Return is submitted before to the due date.

Can we file income tax return for last Three years now?

• No, we cannot file an income tax return for the last 3 years together, only one year ITR file, and from current financial one more older year ITR can be file after.

What happens in case you have miss the deadline of Income tax return filing ? 

If a taxpayer files their ITR after the deadline, they may be liable to a penalty of up to Rs 5,000. For individuals whose annual total income does not exceed Rs. 5 lakh, the maximum fine for filing a belated ITR is Rs 1,000.

What is the penalty for filing belated return?

• As per the changed income tax rules notified U/s 234F of the Income Tax Act, filing our Income tax return post the timeline, can make you liable to pay a maximum penalty of INR 5,000. We needed to pay penalties/Fee if you file belated Income tax return are:

As follows:

• INR 1000, if the yearly income is less than INR 5 lakhs.
• INR 5000, if the annual income crosses INR 5 lakhs.

If you are filing the belated income tax return, some other fee/ charges/interest will be assessed along with penalties.

Interest applicable on outstanding tax Liability Payable.

• In case there is an outstanding income tax liability after July 31st 2022, there is a 1% interest rate that will be applied to any unpaid/ outstanding amount. Whether or not the tax amount was accidentally filed wrong by mistake or not.
• The outstanding tax including interest of outstanding Tax deposited required to be deposit by the taxpayer on or before 31st July.
• Moreover, full month’s interest must be paid for the whole month if the payment is made on the any date of the months. For example; if the payment of tax is made on the 6th day of any particular month, the full month is included for the tax calculation.

Tax to be paid as per tax slab applicability:

 

Implication of Carry forward the losses

• Taxpayers can minimize their tax liability by balancing or Carry forward the losses from the business operation activities or sale of the property against other incomes, tax payer can lower their tax outstanding dues, Losses may be Carry forward the losses over to the succeeding years.
• However, the carried forward/offsetting or Carry forward the losses are not available in the in belated ITR. The dues can only be Carry forward the losses if the return filing is made within 31st July.

What are Transactions compulsory to be mentioned in the Income Tax return FY 2022-23.

Below mention transactions are compulsory required to be stated in the Income Tax return:

• The actual cost of House property: Index cost of the property sold/ purchased was needed to be filling in the Income Tax return. In FY2022-2023, Assesses required to state actual cost of the house property.
• Provident fund (Provident Fund account):If you earn an interest higher than INR 2,50,000/- per annum on the Provident Fund account, it needs to be mentioned in the Income Tax return.
• House Property in a foreign country: If you own a house in any foreign land, its details are also necessary to be mentioned in the Income Tax return. Moreover, Tax dept may may ask you for information or details with respect to your foreign income.
• Sale/ purchase of House property: If you have sale house property between April 1, 2022, &  March 31, 2023, its details must also be state in the ‘Capital gains’ column.
• House property renovation: If you have made renovated your house property in the pervious FY (2022-23), Complete information/ details  about it shall be stated in the ‘capital gains’ column in the Income Tax return.

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