Filing Belated Income Tax Returns: What You Need to Know

Life gets busy, and sometimes, deadlines slip through the cracks, especially when it comes to filing income tax returns (ITR). If you’ve missed the original deadline to file your income tax returns (ITR), don’t worry, there’s still a way to get it done, albeit with a penalty. This blog explains everything you need to know about belated income tax returns and how to file them, helping you avoid hefty penalties while staying compliant.

What is a Belated Income Tax Return?

A belated income tax return is a return filed after the due date, which is typically 31st July of the assessment year. If you miss this deadline, you still have a chance to file your return under Section 139(4) of the Income Tax Act, before 15th January 2025 of the relevant assessment year. While filing your return late may seem like a hassle, its’ much better than ignoring it entirely and facing potential penalties for non-compliance.

For example, the due date to file the ITR for FY 2023-24 (Assessment Year 2024-25) is 31st July 2024. If you miss this date, you can file your belated ITR any time before 15th January 2025.

Why You Should File Your Belated Return?

It’s important to understand that even though you may face penalties and interest, filing a belated return is still better than not filing at all. If you miss the belated return deadline, you won’t be able to file any return for that year. Here’s why you should act fast:

Avoid legal consequences

Failing to file your taxes can lead to hefty fines and even legal action.

Carry forward losses

If you miss the belated return due date, you may not be able to carry forward certain losses like business or capital losses. However, you can still carry forward house property losses.

Claim deductions and exemptions

Some tax-saving deductions, like those under Sections 10A, 10B, 80-IA, etc., are only available if you file your return before the original due date.

The Penalties for Filing a Belated Return

The income tax penalty for filing a belated return varies based on your gross total income. Here’s what you need to know:

• Up to Rs. 5 lakh: A penalty of Rs. 1,000 will be charged.
• Above Rs. 5 lakh: A penalty of Rs. 5,000 will be charged.

Moreover, interest under Sections 234A, 234B, and 234C may be levied for the delay in filing and for any taxes due. So, it’s clear that filing a belated ITR can be expensive, but it’s still worth doing to avoid further complications.

How to File a Belated Return: Step-by-Step Guide

Filing your belated income tax return is straightforward, whether you choose to do it online or offline. Let’s break it down:

Online Method

Log in to your e-filing account

Visit the official Income Tax e-filing portal and log in with your credentials.

Select ‘File Income Tax Return’

From the menu, select ‘e-File’, then choose ‘Income Tax Returns’, and click on ‘File Income Tax Return’.

Choose the Assessment Year

Select the correct Assessment Year (for example, 2024-25 for FY 2023-24).

Select ‘Belated Return’ under Section 139(4)

Choose the belated return option and select the applicable ITR form based on your income sources.

Fill in the details

Enter your personal information, income details, and tax payments accurately.

Submit your return

After reviewing, submit your ITR and proceed with tax payment (if applicable).

Offline Method

Download the ITR Utility

Visit the official income tax portal and download the offline ITR utility.

Fill in the details

Complete your belated ITR using the utility.

Upload and verify

Once your return is ready, upload the file and complete the verification process.

What If You Miss the Belated Return Due Date?

If you miss the belated return due date (15th January 2025), you may still have one last option, filing a condonation of delay request. If you have a genuine reason for missing the deadline, you can request the Income Tax Commissioner to allow you to file your return.

However, this is not guaranteed and depends on the specific circumstances. A penalty of up to Rs. 5,000 may be levied if you miss the deadline without any valid reason. The Income Tax Department can take legal action if you fail to comply, including issuing notices and prosecuting the case in severe situations.

What Happens If You Get a Late Payment Notice?

If you receive a late payment notice from the Income Tax Department, it's important to address it immediately. You can respond through the Income Tax e-filing portal and submit your belated ITR. Keep in mind that delayed returns cannot be revised; however, since FY 2016-17, a belated return can be revised if needed.

Take Charge of Your Taxes with the TaxSpanner’s Tax Calculator!

In conclusion, although filing a belated income tax return comes with certain penalties and drawbacks, it’s still the best option to remain compliant and avoid further issues with the Income Tax Department. Make sure to file your belated ITR before the 15th of January deadline to minimize penalties. Follow the simple steps above to get started and remember to keep track of due dates to avoid future delays. For more help with filing your belated return or to get advice on tax-saving strategies, reach out to TaxSpanner! We’ll help you file your returns smoothly and get back on track.