Rs 5,000 late fee: Your last chance to file belated ITR before December 31, check steps here

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Taxpayers who failed to file their Income Tax Return (ITR) for the financial year 2023-24 (Assessment Year 2024-25) still have an opportunity to file their Income Tax Return (ITR). However, there is now a late fee of Rs 5,000 for filing as per Section 234F of the Income Tax Act.

Who needs to file a belated return?

A belated return under Section 139(4) of the Income Tax Act applies to any income tax return not filed before the time of original filing.

• Late Fee on income below Rs 5 lakh: The late payment of Rs 1,000 will be reduced for taxpayers earning less than Rs 5 lakh per annum.
• Standard late fee: Rs 5,000 for taxpayers earning more than Rs 5 lakh per annum.

What happens if you miss the December 31 deadline?

Failure to file your ITR by December 31 may result in the following:

• Increased penalty: Late fees can be increased up to Rs 10,000 for persons earning more than Rs 5 lakh per annum.
• Legal Repercussions: Possible notices from the Income Tax Department.
• Restricted benefits: You may lose the ability to carry forward certain losses for future tax adjustments.

How to file your belated ITR

Follow these steps to file your belated income tax return:

1. Visit the portal: Log in to the Income Tax e-Filing Portal using your PAN as the user ID.
2. Select ITR Form: Choose the correct ITR form based on your income sources.
3. Assessment year: Select AY 2024-25 for FY 2023-24.
4. Enter details: Provide your income, deductions, and tax liability details.
5. Pay dues: Calculate and pay the late fee, along with any outstanding taxes or interest.
6. Submit and verify: Complete the process by verifying your return through Aadhaar OTP, net banking, or by sending a physical acknowledgment (ITR-V) to the Income Tax Department.

Breakdown of late fees

• After July 31, before December 31: Rs 5,000 (Rs 1,000 for incomes under Rs 5 lakh).
• After December 31: Rs 10,000 (for incomes above Rs 5 lakh).

Why it’s important to file now

Filing before the December 31 deadline ensures compliance and avoids escalating fees or potential legal action. Additionally, it safeguards your ability to claim refunds and carry forward certain financial losses.

Act now to avoid penalties and secure a hassle-free tax filing experience.

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