File your ITR for AY 2022-23 by December 31, I-T Department’s final warning

financialexpress.com:

For those who missed the July 31 deadline to file their income tax return (ITR) for the financial year 2022-23, the Income Tax Department has issued a warning. They’ve given a final chance, setting December 31, 2023, as the last date to file the belated or revised ITR. The department emphasized the difference between the two types of returns. In a post on social media, the department urged taxpayers to act promptly and provided a website link for necessary information.

The income tax rules require everyone to file a return of income from the assessment year 2020-21 onwards. There are specific conditions for those liable to pay income tax, including depositing ₹1 crore or more in one or more current accounts, incurring over ₹2 lakh in travel expenses to a foreign country, and spending more than ₹1 lakh on electricity bills.

If someone fails to file the income tax return within the specified time, they can still file a belated return under Section 139(4) of the Income Tax Act. It’s important to note that there is no separate form for belated ITR; the taxpayer must use the forms notified for a particular assessment year.

Not filing even the belated ITR can lead to adverse consequences, including the inability to carry forward losses (except income from house property), levy of interest under Section 234A, a fee under Section 234F, and ineligibility for exemptions under Sections 10A and 10B. Additionally, deductions under Part C of Chapter VI-A won’t be available.

Section 234F imposes a penalty of ₹5,000 (or ₹1,000 for small taxpayers), and a 1% per month penal interest under Section 234A applies to pending income tax payments.

A crucial step is to verify the filed ITR within 30 days. This verification is essential for