Deadline for Belated Filing of Income Tax Returns: All You Need to Know

You no longer need to worry about missing the deadline for income tax return filing. This article is a complete guide for people who tend to miss the deadline and end up paying hefty penalties.

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What is a Belated Return?

The due date of ITR filing is 31st of July, and in case you miss it you may file a late return with penalties, which is known as Belated Return.  Belated return is filed for the current assessment year after 31st July and before 31st December of the same assessment year.

Belated return is filed under Section 139( 4 ) of the Income Tax Act. The Belated return filing is not free of penalties, it has both penalties and interest charges which vary depending upon how late the taxes are filed. 

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Who is Eligible to File Belated Returns?

There is no criteria to scrutinize who can file belated Returns, anyone filing income tax return is eligible to file belated returns.

Penalties of Late Filing

  The penalties are based on income earned by the taxpayer:

• Individuals with a net taxable income exceeding Rs 5 lakhs for the assessment year may incur belated return penalty up to Rs. 5000.

• Individuals with a net taxable income of Rs 5 lakhs or less may incur maximum penalty up to Rs.1000.

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Penalty Exemptions

Individuals who file ITR whose taxable income is below the basic exemption limit are exempt from penalties of late filing.

Losses incurred in business which cannot be carried forward and set off in subsequent are exempt from penalty.

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What is the Process for Filing a Belated Return?

• Login/ Register to Income Tax Department’s e-filing portal ( Income Tax Department e – Filing ) using PAN as the User ID.

• Select appropriate ITR based on income sources and Select the Assessment Year.

• Enter income details, deductions to be claimed and calculate tax payable.

• Pay due tax along with interest and penalties.

• Verify and submit the return.

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Drawbacks oF Belated Returns

• Losses from business or capital gains can’t be carried forward, though losses from house property and unabsorbed depreciation can be carried forward.

• Late fee is levied under Section 134 F of the Income Tax Act if the taxpayer fails to file returns within the prescribed time limit.

• Under Section 234 A of the Act an interest is levied at 1% per month on the outstanding tax amount.

• The tax exemptions under Section 10A for Charitable institutions, religious trusts, educational institutions, and NGOs, can’t be availed.etc.,

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Belated Return being a late return helps the taxpayer to file returns on missing the deadline of filing. Hence it provides taxpayers an opportunity to comply with tax regulations even if the due date has passed.

Belated Return is only a resort that should be utilized in case of delayed filing and not as a constant procedure, as it is complex and uneconomical in nature. As responsible citizens it is our duty to ensure compliance with tax laws and file income tax returns on time, for maintaining the financial health of the nation and effective social well-being.

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