Income tax, IT department, income tax return, ITR filing- all of these terms can get confusing at at a point. While paying income taxes, original returns should be submitted by the due date. In general, taxpayers must file ITR by July 31 of each year, unless the government grants an extension.
However, there can be some instances where you missed to file a return or missed some aspects while filing the return. There is a solution for each of these. There are different types of income tax returns that can be filed in different circumstances.
The major three forms of ITR are- revised, belated and updated. Although these terms might look similar, they are used to refer different situations. Let us try to decode each one of them in detail.
Imagine that you hastily submitted your return before July 31, 2022, only to discover that you neglected to add some income and made a few mistakes.You can file a revised return in this situation to update your income tax return. You may submit updated returns before the deadline an unlimited number of times. Just make sure your refund is validated.
Three months prior to the conclusion of the applicable assessment year i.e. three months before March 31, 2023, one may submit a revised return for the prior fiscal year 2021–2022. Revisions to returns are free of charge, although under sections 234B and 234C, interest expenses may be assessed and will be computed depending on the date of filing.
The updated return idea was established by the Finance Act of 2022 to provide assessees more time to file their income tax returns. Within 24 months following the conclusion of the relevant assessment year, an updated return may be filed (subject to certain conditions). It may be submitted even after the deadlines for submitting a late return or a revised return of income have passed.
However, submitting an updated return carries a significant penalty. For the fiscal years 2019–20 and 2020–21, the assessed fines were about 25% and 50% of the tax and interest paid for the respective AYs, respectively.
Taxpayers who failed to submit their ITRs by the deadline may still do so through belated returns. But there is a price to pay for this. According to Section 234F of the Income Tax Act of 1961, there is a charge of ₹5,000 for filing a late return. The maximum fine for the delay is ₹1,000 for taxpayers whose combined annual income is less than ₹5 lakh.
Additionally, if there is tax that has to be paid, taxpayers will be assessed interest at a rate of 1% per month starting after the deadline until they file an ITR. You cannot deduct any expenses from your income under Chapter VIA, and you cannot carry forward any losses resulting from investment losses or financial losses.
The deadline for submitting your Income Tax Return (ITR) for the fiscal year 2022-23 has passed. However, you have the option to file an income tax return from the choices mentioned above if you missed out to add something while filing.