If you file your Income Tax Return (ITR) after the due date i.e., 31 July 2023 for FY 2022-23, you may encounter several problems and consequences. Here are some of the issues you may face:
Penalty and interest: The penalty for late filing can range from Rs. 1,000 to Rs. 10,000, depending on the delay and your income level. Additionally, you will be liable to pay interest under Section 234A of the Income Tax Act, which is calculated at 1% per month on the outstanding tax liability.
Loss of certain benefits: Late filing may result in the loss of certain benefits and deductions. For instance, if you file your ITR after the due date, you won't be able to carry forward any losses incurred during the financial year to be set off against future income.
Delayed refunds: If you are entitled to a tax refund, filing your ITR after the due date may cause delays in receiving the refund. The Income Tax Department may take longer to process late-filed returns, and you may have to wait longer to receive your refund.
Inability to revise the return: If you discover any errors or omissions in your originally filed return after the due date has passed, you won't be able to revise it. Late filing restricts your ability to rectify mistakes or make changes to the return once it has been submitted.
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