Can an NRI still file Income Tax Return for Financial Year 2022-23?

With our to-do list overflowing every day and procrastination being our best friend, we often tend to miss most deadlines. In the world of taxation, the due date of filing returns happens to be the one that puts up a hard chase. Although the dates are declared well ahead, people end up praying for an extension until the last minute and for most, despite their best efforts, technology itself may prove to be a barrier in meeting the deadline.

What are the due dates for filing returns?

The original due date for filing Income Tax Return for individuals is 31st July of the year following the financial year end and 31st October for taxpayers whose accounts are subject to tax audit. Returns filed beyond these dates would be termed as "Belated Returns" and such returns can be filed up to 31st December.

Are there any charges for filing belated returns?

It is wise to remember that belated returns in income tax can earn you a late fee. 

The late fee payable is dependent on your taxable income in India.

Taxable Income in IndiaLate Fee (in INR)
Up to INR 2,50,000Nil
INR 2,50,000 to INR 5,00,0001,000
More than INR 5,00,0005,000

In addition to late fee, missing to meet the original deadline takes away the benefit of carrying forward any losses for setting off against income of future years. There are also interests payable for filing belated returns.

What is the interest payable for Belated Returns?

As per section 234A, if you have failed to file returns on the due date, you shall be required to pay interest at the rate of 1% for every month or part of the month of delay, on the tax amount that remains unpaid. 

How to file Belated Returns?

The process involved in filing a belated return is exactly the same as that of filing a return within the due date. It only needs to be noted that the return filing section needs to be mentioned as belated return (Section 139(4)) in the return form.

Can Belated Return be revised? What is the timeline for filing Revised Returns?

Yes. Belated returns are also eligible to be revised, much like returns filed on / before due date.

Currently, the timeline for filing revised return is the same as belated return, namely, 31st December of the year following the financial year end. Hence, any return already filed by an NRI can be revised within 31st December.

In order to encourage voluntary tax compliance, the time limit for filing tax returns has been broadened. Budget 2022 has introduced a new concept of "Updated Return" wherein taxpayers shall now be given two years from the end of relevant assessment year to disclose any income they have missed to include in the returns filed earlier. However, an additional tax shall be levied on the newly disclosed income. There are several pros and cons to filing Updated Returns which have been discussed in a separate article. Please click here to know more about Updated Returns.

All these penalties, interests and even extended timelines has been put in place to encourage timely filing of returns and deter tax evasion. There are countless platforms that provide easy filing of returns, making the process completely hassle-free. PravasiTax has tailored packages that help you file timely returns at your ease and comfort. Click here to view our return filing plans.

As the saying goes, better late than never. So file today! 

Disclaimer: The views / the analysis contained therein do not constitute a legal opinion and is not intended to be an advice. Readers of this document are advised to seek their own professional advice before taking any course of action or decision, based on this document.

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