ITR Filing: I am filing a belated income tax return, will my tax deduction be denied?

The deadline to file Income Tax Return (ITR) for the financial year 2022-23 was July 31, 2023. While a larger section of taxpayers have successfully filed their returns within the stipulated due date, many may have failed to do so due to multiple reasons. Missing the deadline to file ITR may attract late fees and additional interest on taxable amounts, which could be a cause of worry for taxpayers.

Those who have missed the July 31 deadline can file a belated return with fine. Many may also worry about the fact that their tax refund application will be rejected in the case of a belated ITR filing.

Read on to know more about it.

Will tax deductions be denied in case of a belated ITR filing?

Filing a belated ITR comes with late fee, but other benefits such as tax deductions won’t be impacted. It’s important to note that you must submit all supporting documents or proof with belated ITR while claiming deductions.

If you have missed to file ITR for Assessment Year (AY) 2023-24 you can still file a belated ITR. The deadline to file a belated return is December 31, 2023.  

A late fine of Rs 5,000 as per Section 234F of the Income Tax Act, 1961, will be imposed for filing of belated return.

However, if the taxpayer's total income is less than Rs 5 lakh, the penalty will come down to Rs 1,000. Apart from the fine, taxpayers will also have to pay an interest of 1 per cent per month on the taxable amount.

How to file a belated ITR for FY 2022-23?

1. Go to the income tax department's official website at https://www.incometax.gov.in/iec/foportal/

2. Login with your credentials including your PAN/Aadhaar number and your password.

3. On the homepage, go to the e-file section and select 'File Income Tax Return' under the 'Income Tax Return' tab.

4. A new page will open on the screen where you will need to choose the assessment year and then select online/offline mode.

Next, file your Income Tax Return as per the chosen mode.