Belated means late or occurring later than the usual time. When someone says a belated return, this means the income tax return has been filed after the due date of filing.
Let us understand provisions of income tax for belated returns and what consequences taxpayers will face by filing a belated return.
A belated return refers to an income tax return that is filed after the due date set by the tax authorities.
In India, taxpayers are required to submit their tax returns by a specific deadline, usually 31st July or 31st October of the relevant assessment year.
If a taxpayer misses this income tax return filing deadline but still submits their return, it is considered belated.
The due date for filing an income tax return (ITR) for individual taxpayers who are not subjected to tax audit is typically 31st July of the relevant assessment year. If such individuals miss this deadline, they can still file a belated return.
For example, the deadline or last date for filing income tax return (ITR) in case of a taxpayer whose accounts are not required to be audited by a chartered accountant under section 44AB for the financial year 2023-24 (assessment year 2024-25) is 31st July 2024. If you missed this deadline, you can still file a belated return on or before 31st December 2024.
31st July 2024 is referred to as the due date of filing income tax return. Government wants you to file your income tax return before this due date in order to avoid penalty, interest and other consequences.
In case you missed the due date of filing, then you can still file your return on or before 31st December 2024. However, it will be referred to as a belated return for late filing.
Government may extend both the dates in case taxpayers face any practical difficulties in filing income tax return. If these dates are extended, then the new dates as specified by the government will be treated as the actual due dates for filing income tax return.
In simple terms, a belated return is a tax return which is filed after the stipulated due date mentioned in the income tax law.
What if you failed to file a tax return before the due date?
As per income tax law, if you failed to file an income tax return, then you can file a belated return up to 3 months before the end of the assessment year or completion of assessment, whichever is earlier. 3 months before the end of the assessment year is 31st December of the assessment year.
If you missed the 31st December 2024 deadline for the financial year 2023-24 (assessment year 2024-25), then the taxpayer will not be able to file the tax return voluntarily. It can only be filed in response to a notice from the income tax department.
Penalties for filing belated income tax return
Filing a belated income tax return can lead to penalties and interest, but it’s often better than not filing at all.
For filing a belated return, the individual must pay a late filing fee under Section 234F.
If you don’t file your income tax return by the deadline, you may incur a penalty of 5,000 rupees if the return is filed on or before December 31 of the relevant assessment year.
If your total income is below 5 lakh rupees, the penalty is reduced to 1,000 rupees. If your total income is below the basic exemption limit, you won’t face late filing fees.
| Annual income | penalty |
| More than 5,00,000 rupees | 5,000 rupees |
| Less than 5,00,000 rupees | 1,000 rupees |
| Below the basic exemption limit | Nil |
Basic exemption limit for an individual who is up to an age of 60 years is 2,50,000 rupees, for individuals between the age of 60 years and 80 years is 3,00,000 rupees and for those above the age of 80 years its 5,00,000 rupees.
Interest for filing a belated income tax return in India
In addition to penalty as discussed above, taxpayer will also be charged penal interest on any outstanding tax amount due.
Penal interest is levied under section 234A, 234B and 234C, depending on the type of tax that is due.
If you owe taxes and don’t pay by the income tax filing deadline, you will be charged interest at 1% per month or part thereof under section 234A on the outstanding tax amount until you pay it.
The interest is calculated for each month or part of the month the tax remains unpaid. So the longer you delay, the more interest you accumulate on the unpaid taxes.
Loss of Certain Benefits
Filing a belated income tax return may lead to missing out on certain deductions and benefits, such as the ability to carry forward losses (except for house property loss) to subsequent years.
Certain losses like business losses and Speculative losses (losses from trading in stocks or commodities) can only be carried forward if the return is filed on time i.e. before the due date of filing. Filing late may result in the inability to carry forward these losses for set-off against future income.
This means, the taxpayer will not be eligible to carry forward or set off loss from succeeding year under the following heads
- capital gain,
- business and profession, and
- owning and maintaining race horses
However, losses from the head “house property” and “unabsorbed depreciation”can be carried forward.
loss of interest on refund
In case of refund, the income tax department pays interest under section 244A of the Act on such refund due.
If the taxpayer has filed the return on or before the due date of filing, then the such interest is calculated from the first day of the relevant assessment year. However, in case of belated return, interest on refund is calculated from the date of furnishing the IT return. Therefore, the assessee will lose a portion of interest for late filing of tax return.
If you are eligible for a refund and missed the income tax filing deadline, you must file your belated return to claim it.
Please note, an individual cannot opt for the new tax regime while filing a belated income tax return.
If you realize you have missed the deadline, it’s advisable to file your return as soon as possible to minimize penalties and interest.
Filing a belated income tax return in India can incur penalties and interest, but understanding these implications helps you navigate the process more effectively. It’s always best to file on time to avoid these complications whenever possible.
Consider consulting a tax professional to ensure compliance and to explore available options for minimizing the impact of late filing.
Frequently Asked Questions (FAQs)
What is a belated income tax return?
As per the provisions of section 139 (4) of the Income Tax Act, 1961, for an individual who is not required to get their books of accounts audited under section 44AB, income tax return filed after the due date of 31st July of the relevant assessment year is known as a belated return.
If you are one of them, who missed the income tax return filing deadline, you can opt to file a belated ITR by 31st December of the relevant assessment year.
For the financial year 2023-24, the due date of filing applicable to an individual (non audit cases) was 31st July 2024.
If this deadline is missed, ITR can be filed on or before 31st December 2024. In this case the ITR filed will be referred as belated return under section 139(4).
Can a belated return be revised?
Yes, a belated return can be revised if you need to correct any errors or update information.
However, you can revise it within the specified time limits.
The deadline to file a revised income tax return is 31st December of the relevant assessment year.
For the financial year 2023-24 (assessment year 2024-25), the deadline to file a revised return is 31st December 2024.
Similarly for the financial year 2024-25 (assessment year 2025-26), the deadline to file a revised income tax return is 31st December 2025.
Is a belated return eligible for tax refund?
Yes, a belated return can be eligible for a tax refund in India, provided that the taxpayer has paid excess tax or has claimed a refund due to deductions, exemptions, or other reasons.
However, you have to make sure that the belated return is filed within the prescribed time limits.
The taxpayer should specifically claim a refund in the belated return if they believe they are entitled to one.
What will happen if I file the wrong ITR in a belated return?
If you file the wrong Income Tax Return (ITR) in a belated return, you can file a revised return under Section 139(5), as long as you do so within the allowable time frame.
Please note, if the wrong ITR has led to an incorrect assessment, the Income Tax Department may send a notice or initiate further scrutiny.
