Why to file revised and belated Income tax returns?
As we are about to enter in the next year, it is expected from every taxpayer to make sure that his return his duly file with the IT department. Doing so will however avoid a person from paying a penalty.
31st December 2022 is the last deadline given by the Income tax department to file an income tax return. Therefore, every individual falling under the income tax regime is mandated to file their income tax return if they haven’t file ITR for FY 2021-22 on or before 31st July, 2022.
Moreover, if any mistake appeared while filing the ITR then this can be corrected as the taxpayer has given the opportunity to file a revised income tax return.
File Belated Return with EAdvisors
An Income Tax Return which is filed after the due date of return (31 July/31 Oct/ 30 Nov) is considered as Belated Return. So, where an individual somehow forgets to file the original ITR, then a belated return can be filed.
However, a belated return under Income Tax cannot be filed at free of cost. So, for filing a belated return a fee of Rs. 5,000 is charged under Section 234F of the Income Tax Act, 1961. Where the taxpayer’s total income is more than Rs. 5 Lakh in a financial year, the penalty charge is Rs. 1,000.
File Revised Return with EAdvisors
A revised return allows you to rectify the error or omission of facts made at the time of filing your original ITR. Additionally, where the income tax department finds any issue, it may issue a notice for any errors made in the ITR.
In the case of revised return, no penalty is attracted. However, if the assessing officer discovers any mistake or error made intentionally then, filing of revised return shall not be allowed. If we talk about the filing of revised return, then as per Section 139(5) of the Income Tax Act, process of filing ITR is same as that of filing the original Income Tax Return.
What if this deadline is missed by an Individual?
Another option named as filing of “Updated Return” has been introduced under the Finance Act 2022. This is introduced in order to provide a sufficient duration of time to taxpayers to file their return. So, an updated return is allowed to be filed within 24 months from the end of the relevant assessment year. Also, can be filed after the expiry of the due date specified under the income tax law.
An updated income tax return can be filed only after the end of the relevant assessment year. Hence, if taxpayers do not file belated ITRs now, then they will be allowed to file an updated ITR from April 1, 2023, only.
Till now, no such provision for imposing a penalty upon a person is announced. But they will definitely be liable to pay an additional tax in accordance with Section 140B of the Income Tax Act. It also states that the taxpayer shall be liable to pay 25 percent additional tax on tax dues for FY 2021-22 if ITR-U is filed within the first relevant assessment year.
Where the ITR-U (Updated Return) is filed between 1st April 2024 to 31st March 2025 then 50 percent additional tax on taxes due will be paid.
Conclusion
Still Confused and looking for some professional advice? Then, here are we present before you to provide you solutions to your every problem. We at EAdvisors are here to guide you with Income Tax Returns and the process of filing it.
File your Income Tax Return with us and get all the benefits of deduction.
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