What Is Belated ITR, How Does It Differ From Regular One? Explained

Belated ITR Filing: The Income Tax (IT) department has fixed the last date to file the income tax return (ITR) for the financial year 2022-23 (the assessment year 2022-23) is July 31, 2022. It is advisable for people with an annual income greater than Rs 2.5 lakh to file the ITR  before the due date. However, if for some reason the taxpayer  misses the deadline to file their ITR before the deadline of July 31, 2022, they can file a belated ITR.Also Read – ITR Filing 2022: Attention Taxpayers. Income Tax Return Filing Deadline Will Not be Extended Beyond July 31

What Is A Belated ITR?

According to the I-T law, an taxpayer who does not submit a return of income within the deadline is allowed to file a belated return at a later stage. A belated ITR is filed after the due date, while a regular ITR is filed before the due date. The belated ITRs can be filed voluntarily after the normal deadline, up to March 31 of the assessment year. However, in that case, there will be penalty, along with other charges will be applicable on filing the belated ITR. Also Read – ITR Filing 2022: Taxpayers Can File Income Tax Return Through SBI’s YONO App | Check Step-by-step Guide

Thus March 31, 2022 is the last date for ITR filing for AY 2021-22. If the March deadline is missed, then the taxpayer cannot voluntarily file ITR. In such a case, the ITR can only be filed in response to a notice from the Income Tax department. Also Read – Income Tax Return 2022-23: ITR Filing Mandatory For These Individuals. Check Details

Penalty On Unpaid Taxes

If there is an unpaid income tax after the due date on July 31, 2022, taxpayers will have to bear an interest of 1 per cent on the outstanding amount. This is irrespective of whether the tax amount was filed wrong by mistake or not. the taxpayer will have to deposit the outstanding tax along with interest retrospectively from July 31.

Also, if the outstanding tax is paid on or after the 5th of any month, the taxpayer will have to pay the full month’s interest.

Carry forward the losses

The losses are allowed to be carried to subsequent years, therefore, taxpayers can reduce their liability by offsetting the losses from business operations or selling property against other incomes.

However, it is not applicable in the case of a belated ITR. The losses can only be carried forward if the ITR is filed before July 31, 2022.

Transactions mandatory to be mentioned in the ITR

  • House renovation details: If taxpayers have renovated their house in the last financial year (2020-21), they have to mention the details about it in the ‘capital gains’ column in the ITR.
  • Sale/ purchase of property: If taxpayers have sold or purchased property between April 1, 2021, and March 31, 2022, its details must also be mentioned in the ‘Capital gains’ column.
  • Property in a foreign country: If taxpayers own a house in any foreign land, its details are also mandatory to be mentioned in the ITR. Additionally, the I-T department may also ask you for details about your income abroad.
  • Provident fund (PF account): If taxpayers earn an interest higher than Rs 2.5 lakh per annum on the PF account, it needs to be mentioned in the ITR.
  • The actual cost of property: Until now, the index cost of the property purchased/ sold was required to be furnished in the ITR. In FY22, the taxpayers need to mention the actual cost of the property.

Source link

Add a Comment

Your email address will not be published. Required fields are marked *