Have you missed the deadline for income tax submission? Don’t worry; you can still file your income tax return. The income tax rules allow you to file a belated tax return. However, use this facility as an exception as nothing can beat the benefits of filing returns on time.
Filing Tax Returns Late
Income tax return (ITR) filed after the due date is termed as belated ITR. Section 139(4) of the Income Tax Act, 1961 allows a person to file belated income tax returns in case the person fails to file the same on or before the due date.
Deadline to File Belated ITR
The government has revised the deadline of filing belated ITR from the financial year 2020-21. Now, the deadline for filing a belated ITR for a financial year will be December 31 of the assessment year (AY).
As per this new rule, the deadline for filing belated ITR for FY2020-21 should be December 31, 2021. However, the deadline has been extended to March 31, 2022, due to the pandemic and technical issues with the new income tax portal.
Is Revision Allowed for Belated ITRs?
Any belated ITR filed before FY 2016-17 can’t be revised. However, the income tax law was amended to allow revision of the belated ITR from FY 2016-17 and onward.
Disadvantages of Filing a Belated ITR
While the income tax rules allow you to file a belated ITR, you should always file ITR in time because filing belated ITR can have certain disadvantages.
- Penalty for Late Filing of ITR
Under section 234F of the income tax act, late filing of ITR can attract the following penalties with effect from April 1, 2021.
|Particulars of Annual Income
|Maximum Penalty Amount (in Rs)
|Less than Rs 5 lakhs
|More than Rs 5 lakhs
The penalty is not applicable for those who are not required to furnish ITR details under section 139.
- Interest Under Section 234A
If you have any unpaid tax liability for the period for which you are filing belated ITR, you will be levied a penal interest on the unpaid tax amount. However, you will not be levied any interest or penalty if there is no unpaid tax liability.
- Non-Adjustment of carrying Forward Loss
The income tax rules allow an individual or business to carry forward the losses incurred under the following income heads-
- Income from business and profession
- Capital gains
- Income from other sources
However, you can’t carry forward your losses if you are filing a belated ITR.
Since the launch of the new income tax portal, the process of income tax filing has become simpler. The user interface is also very interactive and clutter-free. Alternatively, you can always take the help of a professional to file your returns.
So, if you haven’t been able to file your tax returns on time, it’s not too late. Just file the belated tax returns and don’t wait till the nearing of the extended deadline.