ITR filing 2023: What happens if you miss the July 31 deadline to file ITR?

The last date to file ITR for FY 2022-23 is 31st July, 2023. Taxpayers must pay their taxes before the due date to avoid penalties or late fees. The government reportedly will not extend the due date

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The last date to file income tax returns is 31st July, 2023. All taxpayers must pay their taxes before the due date to avoid penalties or late fees. The income tax department urged taxpayers not to wait until the last minute and file their returns as soon as possible. The government reportedly will not extend the due date.

The talk has begun among different social media platforms, but unlike in previous years, the demand to extend the due date is not there this year.  Resultantly, a record number of returns were filed this year as taxpayers are now aware of the benefits of filing tax returns earlier.

Records filing of ITR

According to a financial express report, the income tax e-filing website shows more than 4.75 crore ITRs have been filed by taxpayers till July 26.

As on July 26, around 4.2 crore ITRs have been verified by taxpayers, and more than 2.54 crore returns were processed by the tax department.

It is expected that the total number of ITRs filed will be more than the previous year. The number of returns filed in FY 2022-23 was higher than in FY 2021-22.

India's Finance Minister Nirmala Sitharaman, in her written reply to a Lok Sabha query on July 24, mentioned that there has been a 6.18% increase in ITR filing in FY 2022-23 as compared to FY 2021-22.

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What happens if you miss the ITR deadline?

It is always advisable to file income tax before the last date to avoid the hassle. Everyone is expected to file ITR under section 234. There wouldn't be any late fees if you are not supposed to file an ITR as per Section 139.

If one fails to file ITR within the deadline under section 139(1), then the person is liable to pay a late fee of Rs 5000 as a penalty under section 234F.

In case, one's salary doesn't exceed Rs 5 lakh, still he has to pay a penalty of Rs 1000 in a similar situation.

Is it possible to file a return after the due date?

The income tax website says if the ITR is not filed on a specified due date under section 139(1), it will be treated as a belated return, and a belated return is filed under section 139(4).

A person can even file the ITR return for any previous year, not just the current year, under section 142(2) at any time before three months of any relevant assessment year or before the completion of the assessment, whichever is earlier.

The belated ITR filing will be treated as a late filing of the current year and liable for a late fee of Rs 5000 under section 234F.

In case, the person's income doesn't exceed Rs 5 lakh, they have to pay Rs 1000 as late fees.