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Belated Return-Can an individual still file ITR ?
Written by Gagandeep Arora - Printed on - Date - 9th Aug 2024
If an individual misses filing the ITR on or before the due date, there is no need to worry you can still file a belated return under section 139(4). Let’s discuss this further in an elaborate manner.
Table Of Content
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What is a belated return ? How to file a belated return? What are the disadvantages of filing a belated return? |
What is a belated return ?
A belated return is a tax return filed after the original due date.However, it's never too late to catch up and reap the benefits of filing your taxes. Don't let procrastination hold you back from these advantages. Take control of your finances today by filing your belated return promptly, and enjoy the relief and benefits that come with fulfilling this important responsibility.
How To File a Belated Return ?
A belated return is filed once an assessee misses the deadline and the process is similar to filing an ITR as it was before the due date. Although the belated ITR is filed under section 139(4) instead of section 139(1).
To file a belated return you need to follow these steps -
1. Collect the required documents - The necessary documents required for filing as Form 16, investment proofs and other income related documents should be handy to file the return smoothly.
2. Visit the Income tax e-filing portal - With the help of your log in credentials fill the necessary details at the income tax website.
3. Select the ITR Form- Enter the necessary details in the correct ITR form, which is based on your sources of income.
4. Pay the Penalty (if applicable)- You may need to pay a penalty under Section 234F for filing after the due date. The amount can be up to ₹10,000 depending on the delay and your total income.
5. Contact tax professional- We at TaxManager can make all this simple for you and complete the filing easily.
Disadvantages of filing belated return
Filing a belated return can lead to several disadvantages that taxpayers should be aware of:
1. Late Fees and Penalties: A significant drawback of filing a belated return is the imposition of late fees. Under Section 234F of the Income Tax Act in India, a fee of up to ₹10,000 can be levied depending on the delay and the total income of the taxpayer. Additionally, interest may be charged under Sections 234A, 234B, and 234C for unpaid taxes, increasing the financial burden.
2. Loss of Carry Forward of Losses: Taxpayers who file their returns after the due date cannot carry forward certain losses, such as business losses or capital losses, to future years. This means they lose the opportunity to set off these losses against future income, potentially resulting in a higher tax liability in subsequent years.
3. Reduced Time for Revisions: A belated return can be revised only until the end of the assessment year. This limited timeframe restricts the taxpayer's ability to make corrections or update information, which could lead to complications if errors are discovered later.
4. Delayed Refunds: Filing late can result in delays in the processing of refunds. This can affect cash flow for individuals or businesses who are expecting a tax refund, causing financial inconvenience.
Overall, timely filing of tax returns is essential to avoid these disadvantages and ensure compliance with tax regulations.
2. Loss of Carry Forward of Losses: Taxpayers who file their returns after the due date cannot carry forward certain losses, such as business losses or capital losses, to future years. This means they lose the opportunity to set off these losses against future income, potentially resulting in a higher tax liability in subsequent years.
3. Reduced Time for Revisions: A belated return can be revised only until the end of the assessment year. This limited timeframe restricts the taxpayer's ability to make corrections or update information, which could lead to complications if errors are discovered later.
4. Delayed Refunds: Filing late can result in delays in the processing of refunds. This can affect cash flow for individuals or businesses who are expecting a tax refund, causing financial inconvenience.
Overall, timely filing of tax returns is essential to avoid these disadvantages and ensure compliance with tax regulations.
