The Income-Tax (IT) department has set December 31, 2023, as the final date to file belated and revised Income Tax Returns (ITRs) for the financial year (FY) 2022-23 or assessment year (AY) 2023-24, under Section 139(5) of the Income-Tax Act (ITA), 1961. Let’s delve into some essential terminologies and procedures individuals should know before filing their returns.
Financial Year (FY) and Assessment Year (AY):
The financial year (FY) spans a 12-month period during which individuals earn income. For instance, earnings made between April 1, 2022, and March 31, 2023, constitute FY 2022-23. Conversely, the assessment year (AY) follows the FY and is the period during which earned income is assessed for taxation purposes. Following the previous example, the AY for income earned in FY 2022-23 would be 2023-24.
Belated and Revised Income Tax Returns (ITRs):
If an individual misses the filing deadline, they can still submit their ITR, known as a belated return, under Section 139(4) of the ITA, 1961. However, a penalty of Rs 5,000, specified under Section 234F of the ITA, 1961, is applicable for late filing. For individuals with annual income up to Rs 5 lakh, the maximum penalty is Rs 1,000. Additionally, late payment incurs interest at a rate of 1% per month until the return is filed. Conversely, individuals can file a revised return under Section 139(5) of the ITA, 1961, if they inadvertently omitted income or made errors in their original filing. There is no penalty for filing a revised return, but any deliberate inaccuracies may result in penalties if discovered by the assessing officer.
Filing Process:
Both belated and revised returns follow the same filing process as the original return. While belated returns attract a fixed penalty, revised returns do not incur an additional penalty unless there are intentional errors. Understanding these concepts is crucial for taxpayers to navigate the filing process effectively and avoid penalties or complications associated with late or inaccurate filings.
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