Last date to file ITR is July 31 for FY 2023-24; disadvantages of filing a belated income tax return

If you file your income tax return after the deadline has passed (July 31, 2024), the process is the same as filing before the deadline. However, when filling out the belated ITR form, you need to select section 139(4) instead of 139(1). Section 139(1) is to be selected if you file your ITR on or before the expiry of the due date, July 31, 2024.

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An individual must pay a late filing fee under Section 234F when filing a belated ITR. All individuals filing belated ITRs will incur a penalty of Rs 5,000. However, those with taxable income not exceeding Rs 5 lakh will face a penalty of Rs 1,000 for filing belated ITRs.If you are required to file your taxes late, you will need to pay a penalty, even if you don’t owe any taxes. If your total income is below the exemption limit, you won’t face late filing fees. However, remember that if it’s mandatory for you to file your taxes, you may still be charged a penalty, even if your income is below the exemption limit.

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Filing an income tax return (ITR) after the due date has several disadvantages.

Not allowed to carry forward losses
1) If an individual files an income tax return after the expiry of the deadline, then he/she will not be able to carry forward the losses under the following heads:
a) Income from other sources
b) Income from capital gains
c) Income from business and profession including speculation business

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You will receive a tax refund only if you file and verify your income tax return (ITR) and you are owed a refund.

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An individual is liable to pay penal interest if any tax dues are pending at the time of filing belated ITR. Penal interest is levied under section 234A, 234B and 234C, depending on the type of tax that is due.

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Individuals cannot opt for the new tax regime while filing belated ITR for AY 2024-25.

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