Understanding Belated Income Tax Returns: A Guide for Taxpayers

Understanding Belated Income Tax Returns

Understanding Belated Income Tax Returns Filing income tax returns (ITR) is a crucial responsibility for every taxpayer in India. While the due date for filing ITRs is generally July 31, there are instances where individuals might miss this deadline. Fortunately, the Income Tax Act provides an option for such taxpayers to file their returns even after the due date. According to Section 139 (4) of the Income Tax Act, an ITR filed after the due date is known as a belated return. Here, we delve into the details of belated returns, the implications of filing them, and the process involved.

 

 What is a Belated Return?

Understanding Belated Income Tax Returns A belated return refers to an income tax return filed after the due date specified under the Income Tax Act. For most taxpayers, the due date for filing the ITR is July 31 of the relevant assessment year. However, if a taxpayer misses this deadline, they can still file their return by December 31 of the same assessment year as a belated return.

 

 Filing Timeline for Belated Returns

– Original Due Date: July 31 of the relevant assessment year.

– Extended Deadline for Belated Returns: December 31 of the relevant assessment year.

 

For instance, if the due date for filing your ITR for the financial year 2022-23 is July 31, 2023, you can still file a belated return up until December 31, 2023.

 

 Implications of Filing a Belated Return

Filing a belated return comes with certain implications that taxpayers need to be aware of:

 

1. Late Filing Fee

Understanding Belated Income Tax Returns Under Section 234F of the Income Tax Act, a late filing fee is levied on taxpayers who file their returns after the due date. The fee structure is as follows:

– ₹5,000 if the return is filed after the due date but before December 31.

– ₹1,000 if the total income of the person does not exceed ₹5 lakh.

 

2. Interest on Tax Due

Understanding Belated Income Tax Returns If there are any unpaid taxes, interest under Section 234A will be applicable at the rate of 1% per month or part of the month on the unpaid tax amount, calculated from the original due date (July 31) till the date of actual filing.

 

3. Carry Forward of Losses

Taxpayers who file their returns after the due date are not allowed to carry forward certain losses (like business loss or capital loss) for set-off against future income. However, losses from house property can still be carried forward.

4. Refund Delays

Understanding Belated Income Tax Returns Filing a belated return might lead to delays in processing refunds, as the return is processed on a priority basis only after all returns filed within the due date are processed.

 

 How to File a Belated Return

 

Filing a belated return is similar to filing a return on time, with the added step of paying any applicable late filing fees and interest. Here’s a step-by-step guide: Understanding Belated Income Tax Returns

 

1. Gather Necessary Documents:

   Ensure you have all required documents such as Form 16, TDS certificates, bank statements, investment proofs, and other relevant financial documents.

 

2. Log In to the Income Tax Portal:

   Access the Income Tax e-filing portal at [incometaxindiaefiling.gov.in](https://www.incometaxindiaefiling.gov.in).

 

3. Select the Relevant ITR Form:

   Choose the appropriate ITR form based on your income sources and download the form.

 

4. Fill in the Details:

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

 

  5.Calculate Tax and Interest:

Calculate the tax payable and include the interest under Section 234A, if applicable.

 

6. Pay Any Due Amount:

   Use the online tax payment facility to pay any outstanding tax, including interest and late filing fee.

 

7. Submit the Return:

   After verifying all the details, submit the return electronically. Ensure you e-verify your return using Aadhaar OTP, net banking, or other available methods.

 

8. Keep Acknowledgment:

   After successful submission, download and keep the acknowledgment (ITR-V) for your records.

 

Conclusion

Understanding Belated Income Tax Returns Filing a belated return is a valuable provision under the Income Tax Act, allowing taxpayers to comply with their tax obligations even after the due date. While it’s always advisable to file your ITR within the due date to avoid penalties and interest, the option to file a belated return ensures that those who miss the deadline still have a chance to fulfill their responsibilities. Understanding the implications and following the correct procedure can help taxpayers navigate the process smoothly and minimize any potential financial impact.

Sources : https://cleartax.in/s/how-to-file-income-tax-return-for-last-years

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