Missed to file ITR for FY 2021-22, Know all options available
Taxpayers who missed the July 31, 2022 deadline for filing Income-Tax Return (ITR) for FY 2021-22 may file a belated return till 31 December 2022 as the last date.
Decades-old habit to file tax returns is March is out of the question !
Belated Tax return aims at providing an additional opportunity to those taxpayers who miss the deadline due to some unavoidable reason, furnishing a belated return has three major disadvantages.
1) Interest at 1% per month will be charged on unpaid taxes u/s 234A
2) Late fees of ₹1,000 for incomes below ₹5 lakh and ₹5,000 for incomes exceeding ₹5 lakh is charged u/s 234F.
3) Many losses like capital & business losses cannot be carried forward for setting off
If a taxpayer has filed original or belated ITR but later discovers an omission or wrong statement in it due to a bonafide mistake, they have the option to revise their tax return till 31 December
Interestingly, even a belated return can be revised within the time limit and a revised return can be revised again for correcting any omission or wrong statement made in the first revised return.
If someone has missed the deadline to file belated or revised return by 31 December, the Finance Act, 2022, has introduced a new section 139(8A) as one last option to declare the real income without any concealment or understatement of income or overstatement of expenses/losses
Updated return filed within 12 months from end of AY will be taxed @ 25% while any return filed after 12 months but before 24 months from end of relevant AY will be taxed @ 50%
If some one miss the 31 December 2022 deadline for filing ITR for FY 2021-22, the taxpayer may not able to file returns from 1 Jan to 31 March 2023. They may have to wait till 1 April 2023 to file updated returns for FY2021-22 So its better to file ITR if pending, by 31 December