Keep in mind while filing billed ITR
Income tax payers, who want to file billed ITR, are required to file returns under Section 139(4) of the Income Tax Act. Where payment of prescribed penalty, penalty interest and due tax is mandatory.
Besides, Section 234(F) of the Income Tax Act states that if the return is not submitted within the stipulated time, a penalty of 5000 rupees must be paid along with the billed return. However, for those income tax payers whose taxable income is below 5 lakh rupees, the penalty amount will be 1 thousand rupees.
Income tax payers can proceed with filing the return only after paying this ‘late-filing fee’ before filing the income tax return. In that case, if there is any income tax arrears, the income tax authority will calculate the penalty interest on it according to the specified procedure. If self assessment and advance tax is due at the time of submission of return, it will be effective at the rate of 1 per cent per month due.
How to give revised ITR?
All other procedures are same as filing returns. Only section 139(5) option has to be selected while filing return.
What will happen if the return is not given yet?
You can not give. In that case, following the rules proposed in Budget-2022, the way is open to submit your return in the coming days as well. In that case you have to submit ITR-U form.
But remember, you can’t claim any refund after filing income tax return in ITR-U form. The refund cannot be extended. Even, one cannot use ITR-U form for loss or ‘nil’ returns.
Also can submit only one updated return for each assessment year.
One thing to remember is that such billed ITR form has to be submitted within 24 months from the last day of the concerned assessment year in any case. Consequently, the return for the financial year 2021-22 (Assessment Year 2022-23) is due between April 1, 2023 and March 31, 2025.
However, the point to be kept in mind is that if the income tax return is filed in Form ITR-U within 12 months from the last day of the relevant assessment year, the taxpayer will have to pay an additional 25% of the tax due plus interest. 50% of tax due plus interest will be payable on submission of returns for 13-24 months.
If no tax is due, a fine of Rs 5000/1000 is mandatory under section 234(f) of the Income Tax Act, even if this additional tax and interest is not payable on filing the billed return.
If, for any reason, the taxpayer does not file the return, the Income Tax Department will take action against him under Section ‘276 CC’ of the Income Tax Act. Where the Income Tax authorities have the power to impose rigorous imprisonment ranging from 3 months to 7 years, fine and other legal action.
But just filing the income tax return in time does not end the job of the income tax payer. The return is considered acceptable to the Income Tax Department only after it is ‘verified’ in accordance with the prescribed procedure within one month of its submission. As a result, if the income tax return is not ‘verified’, the income tax department will assume that the return has not been filed by the concerned person.
So you understand, if you do not submit the return on time, you can get into trouble. Whether the tax is due or not. So, without further delay, file the return before the end of the year. And verify it immediately.