The commotion around filing an income tax return after the deadline is both legal and completely understandable. For individuals and non-audit cases, income tax returns in India typically need to be submitted by July 31; for audit cases, they must be submitted by October 31.

The final opportunity to voluntarily file an income tax return is three months before the end of the applicable assessment year or the completion of the assessment, whichever is earlier.

Anything filed beyond that could result in difficulties for the party. As the name implies, a belated return is submitted after the deadline specified by income tax regulations.

When filing an income tax return late, there is a specific penalty. The following fines must be paid by anyone who files their income tax returns after the deadline:

1. Infraction of Section 234F
A maximum fee of Rs. 5,000 must be paid by taxpayers who submit their ITR after the deadline, according to new modifications to Section 234F of the IT Act. From FY 2021 forward, the Income Tax Department of India has reduced the maximum fine for submitting taxes late from Rs. 10,000 to Rs. 5,000.

Therefore, one is not required to pay the late ITR filing penalty if they file their IT return before the deadline. Individuals who submit their returns after the cut-off date must pay a fine of Rs. 5,000.

The maximum fine for filing an ITR late is Rs. 1,000 if the individual's total annual income does not exceed Rs. 5 lakhs.

2. Entitlement to Interest
According to Section 234A, taxpayers who fail to submit their ITR by the deadlines must pay interest of 1% per month, or a fraction of a month, on the unpaid tax amount. If the tax is not paid, ITR filing cannot be done.

The date after the tax filing deadline, typically July 31 of a particular assessment year, is when interest will start to be calculated. Longer filing delays would result in greater interest accrual, raising the overall fine for late ITR filing.

3. Infraction of Section 271H
In addition to the late ITR filing penalty under Section 234E, those who fail to submit their TCS or TDS statements by the deadline are subject to a fine ranging from Rs. 10,000 to Rs. 1,000,000. An Rs. 200 is imposed under Section 234E until TCS or TDS is paid.

In addition to fines, late ITR filing has the following repercussions:

4. Less Time for Returns Revision
The most recent amendments to the IT Act give people who file ITRs incorrectly a year to correct and update their inaccuracies. Before this change, taxpayers had two years to make any necessary adjustments.

Changes can now only be made up until the conclusion of the applicable evaluation year. Therefore, the window for making pertinent changes and amendments will be longer the earlier individuals submit their income tax returns.

5. No Possibility of Carrying Forward Losses
Taxpayers should file their ITRs on or before the deadline if they anticipate losses in their businesses or under the "Capital Gains" heading. As a result, they will be able to roll over those losses to the following year and offset those losses against their future earnings.

6. Delay in Refunding Payments
If a person is eligible for a refund for overpaid taxes, filing an ITR before the deadline will enable them to recover their money sooner.

Not only is it prudent, but filing your taxes early can also provide several advantages. Several notable benefits are:

1. Visas are issued more quickly
Most embassies want copies of your previous years' tax returns to complete your visa. So, submitting your IT returns ahead of time can speed up the processing of your Visa application.

2. Loan approval is quick
Getting approved for a house or car loan is simpler if you submit the ITR within the allotted time.

3. Evidence of income and address
When applying for a loan or visa, you can use an income tax return to verify your income and address.

There is plenty of breathing room, though, so a delay may not permanently and irrevocably result in a fine. An individual or party who misses the deadline for filing an appeal or lawsuit, known as the Limitation Period, may receive relief by submitting a Condonation of Delay.

According to Section 5 of the Limitation Act of 1963, the court may decide to accept the party's request for condonation of delay if they can demonstrate evident causes and circumstances that are acceptable in the court's eyes.

The tax department of India has established a variety of last dates up to which a person can file the return, depending on their category, to ensure timely filing of returns and avoid dates colliding among the jamboree of assesses in the nation, viz.

• Individual
• HUF, Firm, LLP
• The company’s trust
• Applicability of AOP/BOI and Audit

For instance, in FY 2021–2022.

• The deadline for filing an individual and HUF (professionals or persons, small companies with non-audit cases) income tax return is July 31, 2023. Audit-requiring partner cases must be submitted by October 31, 2023, while most audit reports must be completed by September 30, 2023..
• Companies, trusts, and political parties must also file their income tax returns by October 31, 2023, for their financial records to be audited.
• Due dates may be shortened in exceptional circumstances, such as the current pandemic, to three months (December 31) before the end of the fiscal year (March 31st).

If the assesses discover a mistake or incorrect data included in the file of the income return, there is a mechanism to submit an amended file.

Unless an extension is granted, the government requires taxpayers to submit their ITRs by the end of the assessment year (AY) corresponding to the financial year (FY). For the party to aggregate the income information for the financial year, a substantial four-month window is created for a tax return filing that can be completed in a matter of minutes.

The income tax return file contains an annual summary of a person's earnings, tax obligations, tax payments, and investments for the relevant financial year, which is compiled and submitted to the appropriate authorities.

Furthermore, a taxpayer's submitted condonation of delay may be allowed by the court on specific grounds if he misses his deadlines to file an income tax return for reasons he is aware of. For instance,

• There may have been inconsistencies in the understanding and filing of the return due to subsequent changes in the law.
• Illness or incarceration of the ITR-filing party,
• Due to the pending resolution of the writ petition,
• The minority-group-affiliated party lacks resources or is illiterate.

If a company submits a request for a condonation A board meeting is set up of the firm's members who pass the resolution that should be kept in front of the Central Government for a company filing their condonation of delay.

This is essential for the Central Government's consideration and approval of the condonation of delay and could also be helped by avoiding the resolution by circulation.

The next step is for the firm secretary, chief financial officer, director, or any other company officer currently in practice to appear before the Ministry of Corporate Affairs and submit an application outlining the reasons for the delay and the requested relief.

Along with the actual copy of the board resolution authorising the submission of the application and the appointment of an authorised representative, the condonation of delay application (form CG-1) filed with the Central Government should also include other pertinent documents and a letter of authorisation.

This way, the Central Government can examine, scrutinise, and decide whether to approve or reject the application.

Without first paying tax, submitting an income tax return is impossible. One plays for a more extended period as one waits. There are numerous offsets or repercussions for failing to submit an income tax return on time. Taxpaying alone, contrary to popular belief, is insufficient; the majority of the time, missing a return date has legal repercussions.

A late ITR return would still incur a Rs 5000 penalty (for the financial year 2023–2024, for example, if the due date of July 31 is missed, it should be filed before December 31). However, there is a relief that equates to an Rs. 1000 fine for taxpayers making up to Rs. 5 lakhs.

If someone intentionally disregards multiple issued notifications to file a return, they may receive a more severe reprimand. If the amount of tax one owes to the department is higher, the three-month sentence could be increased to two to seven years. On under-reported incomes, one may also be subject to a 50% tax fine in addition to the penalty.

Losses cannot be offset or carried forward to subsequent tax years, refunds and returns of additional taxes must be postponed, and under Section 234A, interest may be assessed at a rate of 1% per month (or a fraction thereof) on tax due until payment of taxes. Therefore, filing returns reflects citizens' desirable and responsible conduct, aware of their contributions to society.