Oops! Missed the ITR Filing Deadline: What Is a Belated Return and How to File It

In the realm of taxation, a belated return is an essential yet often misunderstood concept. It refers to the filing of an income tax return after the due date specified by the tax authorities. Understanding the intricacies of belated returns, their significance, and the process of filing them can help taxpayers avoid penalties and ensure compliance with tax regulations.

This article delves into the nuances of belated ITR filing for individuals and provides a comprehensive step-by-step guide on how to file it.

A belated ITR filing, as defined under Section 139(4) of the Income Tax Act, 1961, allows taxpayers to file their income tax returns after the due date. This provision offers a lifeline to those who, for various reasons, miss the original deadline. The key aspects of belated returns include:

1. Extended Timeline: Taxpayers can file a belated return for a financial year until the end of the assessment year or before the completion of the assessment, whichever is earlier. For instance, for the financial year 2023-24, the belated return can be filed until March 31, 2025, do note penalties will be levied as applicable.

2. Penalties and Interest: Filing a belated return attracts penalties and interest. A penalty of up to Rs 5,000 is levied if the ITR is filed after July 31, 2024, due date but before the December 31, 2024 deadline. Rs 10,000 can be levied under Section 234F if the return is filed after the due date. Additionally, interest on any outstanding tax liability may be charged under Section 234A.

3. Loss of Benefits: Taxpayers who file belated returns may lose certain benefits, such as carrying forward losses to subsequent years. Losses under the head 'Income from house property' and unabsorbed depreciation can still be carried forward, but other losses cannot.

[Read: What Happens If You Miss the Due Date to File Your ITR]

Filing a belated return, despite the associated penalties and interest, is crucial as it ensures compliance with tax laws and helps avoid more severe consequences, such as prosecution. It allows taxpayers to rectify errors or omissions in their financial records, ensuring that their tax liabilities are accurately reported.

An income tax return is a vital document for various financial transactions, including applying for loans and visas. A belated return ensures that this documentation is available when needed. Filing a return, even if late, can prevent additional penalties and interest from accruing, minimizing the financial impact on the taxpayer.

Consequences of Not Filing a Belated Income Tax Return

Failing to file a belated return can have serious repercussions, including:

• Penalties and Interest: Non-filing of returns can attract significant penalties and interest on unpaid taxes.

• Loss of Refunds: If you are entitled to a tax refund, failing to file your return means forfeiting this refund. The Income Tax Department will not process refunds without a filed return.

• Legal Consequences: Persistent non-filing of returns can lead to prosecution under Section 276CC of the Income Tax Act, with imprisonment ranging from three months to two years, along with a fine.

• Ineligibility for Loans and Visas: Non-filing of returns can affect your financial credibility, making it difficult to obtain loans or visas. Financial institutions and foreign embassies often require proof of tax returns as part of their evaluation process.

[Read: New Tax Regime v/s Old Tax Regime: Which One Should You Opt for After Modi 3.0 Budget?]

How to File a Belated Income Tax Return

Filing a belated return is a straightforward process that can be completed online through the Income Tax Department's e-filing portal. Here is a step-by-step guide to filing a belated return:

Step 1: Gather Necessary Documents

Before filing a belated return, ensure that you have all the necessary documents, including:

• Form 16 (for salaried individuals)

• Form 26AS (tax credit statement)

• Bank statements

• Investment proofs

• TDS certificates

• Any other relevant financial documents

Step 2: Register on the E-filing Portal

If you have not already registered on the Income Tax Department's e-filing portal, visit https://www.incometax.gov.in and complete the registration process. You will need to provide basic information such as your PAN, name, and date of birth.

Step 3: Log In to the E-filing Portal

Log in to the e-filing portal using your PAN as the user ID and the password you created during registration.

Step 4: Select the Appropriate Assessment Year

Once logged in, select the appropriate assessment year for which you are filing the belated return. For example, if you are filing a belated return for the financial year 2023-24, the assessment year will be 2024-25.

Step 5: Choose the ITR Form

Select the appropriate Income Tax Return (ITR) form based on your sources of income. Common forms include:

• ITR-1: For individuals with income from salary, one house property, and other sources (excluding lottery income and income from racehorses)

• ITR-2: For individuals and HUFs not having income from business or profession

• ITR-3: For individuals and HUFs having income from business or profession

• ITR-4: For individuals, HUFs, and firms (other than LLP) having presumptive income from business or profession

Step 6: Fill in the Form

Fill in the selected ITR form with accurate details regarding your income, deductions, and tax payments. Ensure that all the information matches the documents you have gathered.

[Read: Is the Revised New Tax Regime Truly Beneficial for You? Find Out Here...]

Step 7: Specify the Return Type

While filling out the form, you will be asked to specify the type of return. Select '139(4) - After Due Date' to indicate that you are filing a belated return. The Income Tax Act, 1961's Section 234F imposes a penalty for late ITR filing. If the taxable income does not surpass Rs 5 lakh, the penalty amount for small taxpayers is limited to Rs 1,000.

Step 8: Calculate Tax Liability

The e-filing portal will automatically calculate your tax liability based on the information provided. If there is any tax payable, pay the amount using the online payment options available on the portal.

Step 9: Verify and Submit

After filling in all the details and making any necessary tax payments, review the form carefully to ensure accuracy. Once satisfied, submit the return. You will receive an acknowledgement number upon successful submission.

Step 10: Verify the Return

The final step is to verify the return. You can do this electronically through methods such as Aadhaar OTP, net banking, or by sending a signed physical copy of the ITR-V to the Centralized Processing Centre (CPC) in Bangalore.

When filing a belated return, it is essential to avoid common mistakes that could lead to further complications. Ensure that all the details entered in the ITR form are accurate and match your documents. Incorrect information can lead to discrepancies and potential scrutiny.

Verify your Form 26AS to ensure that all TDS and advance tax payments have been correctly credited. Any discrepancies should be resolved before filing the return. Make sure to claim all eligible deductions and exemptions to reduce your tax liability. Double-check the documentation for deductions under sections such as 80C, 80D, and 80G.

Completing the return submission is not enough; you must also verify it. Delaying the verification process can render your return invalid.

Revised ITR Filing

Despite the best intentions and careful preparation, mistakes may still occur when filing your belated return. Fortunately, the tax authorities offer a remedy in the form of revised returns. Under Section 139(5) of the Income Tax Act, taxpayers have the option to rectify errors or omissions in their already-filed belated returns.

For example, if you filed a belated return for the financial year 2023-24, you have until March 31, 2025, to file a revised return. Filing a revised return is a straightforward process similar to filing the original or belated return.

While filling out the form, specify that it is a revised return under Section 139(5). Make sure to include the acknowledgement number and date of filing of the original belated return. Carefully correct any errors or omissions and submit the revised return. This additional opportunity to rectify mistakes ensures that your tax filings are accurate, helping you avoid penalties, interest, and potential scrutiny from the tax authorities.

To conclude...

A belated return is a crucial provision that allows taxpayers to comply with their tax obligations even after missing the original deadline. While it attracts penalties and interest, the benefits of filing a belated return far outweigh the consequences of non-compliance.

Filing a belated return is a responsible step that reflects a commitment to fulfilling one's tax obligations and contributes to the overall integrity of the tax system.

In addition, you may consider reading these articles related to ITR filing for FY 2023-24, relevant AY 2024-25…

How to File Income Tax Return Online for AY 2024-25

ITR Filing Made Easy: Document Checklist for FY 2023-24 Tax Season

10 Steps to File Your ITR Online for FY 2023-24 (AY 2024-25)

Income Tax Return for FY 2023-24: Which ITR Form Should You Choose?

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MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.
 

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