As we approach the final weeks of 2023, taxpayers are reminded of the impending deadline for filing belated or revised income tax returns for the assessment year 2023-24. The crucial cutoff date is December 31, 2023, providing taxpayers with a last opportunity to fulfill this essential financial obligation.
The countdown to the new year has begun, but before welcoming 2024, taxpayers must prioritize filing their Income Tax Returns (ITR) for the financial year 2022-23. December 31, 2023, marks the final chance to submit ITR; failing to meet this deadline may result in both penalties and interest. Swift action is advised to avoid unnecessary financial burdens.
Penalty Considerations Under Section 234F
Section 234F of the Income Tax Act outlines penalties for late ITR filings. A taxpayer filing after the deadline may face a penalty of Rs 5,000. Notably, individuals with an income not exceeding Rs 5 lakh will incur a reduced fine of Rs 1,000. It is imperative to act promptly to circumvent these penalties.
Interest Implications for Late Filings
Late filings also attract interest under Section 234A. Taxpayers are obligated to pay 1 percent interest on the unpaid tax amount for each day of delay. Being aware of these consequences emphasizes the importance of adhering to the December 31, 2023, deadline.
Plan for the Future
If the December 31 deadline is missed, taxpayers have a window of the next 24 months (till March 31, 2026) to file their ITR, albeit with additional penalties and interest. However, filing an updated return to reclaim paid taxes is not an option.
Seeking Condonation of Delay
In exceptional circumstances where the due date is unattainable, taxpayers can seek condonation of delay under Section 119. By communicating the reasons for the delay to the tax department, individuals may request an opportunity to file ITR. It is crucial to note that a fine of Rs 10,000 and 1 percent interest may be imposed in such cases.
Consequences of Non-Compliance
Failure to file ITR can lead to proceedings under the Section 276CC of the Income Tax Act. To avoid complications in the future, taxpayers are strongly advised to submit their returns before the stipulated deadline.
Failure to file the return of income as per section 139(1) and failure to file the return of income in response to a notice issued under section 142(1)(i) or section 148 or section 153A of the IT Act will enable the department to invoke Section 276CC of the Income Tax Act.
Punishments for non-compliance
Rigorous imprisonment which shall not be less than 6 months but which may extend to seven years and with fine where tax sought to be evaded exceeds Rs. 25 lakh (Rs. 1 lakh upto 30-6-2012). or Rigorous imprisonment which shall not be less than 3 months but which may extend to two years (3 years upto 30-6-2012) and with fine in other cases.
Notably, the taxpayer shall not be proceeded against under this section for failure to furnish in due time the return of income under section 139(1), if:
(a) the return is furnished by him before the expiry of the assessment year; or
(b) the tax payable by him (not being a company) on the total income determined on regular assessment, as reduced by advance tax and TDS, if any, does not exceed Rs. 10,000.
Conclusion
The approaching deadline for filing income tax returns necessitates immediate action from taxpayers. Meeting the December 31, 2023, cutoff is essential to avoid penalties, interest, and potential legal consequences. Proactive measures taken now will ensure a smoother financial journey into the new year.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
