Understanding late return
A belated return is a late filing of the tax return under section 139(4) of the Income-tax Act. It gives a chance to taxpayers to declare income, allow deductions, and pay taxes even if the due date has lapsed. Late filing will attract penalties, disallow some relief, and place taxpayers under the limelight, so it is a smarter and convenient way to have timely compliance. Deadline for belated return
The deadline for the submission of a belated return is the end of the relevant assessment year, typically March 31 after the financial year. For example, for income earned in FY 2024-25, the belated return may be filed till March 31, 2026. The taxpayers should not wait till the last moment, as technical problems or last-minute oversights may lead to issues and leave little time to rectify them.
Penalties and late fees
Late return filing has cost consequences. A maximum late filing charge of ₹5,000 is to be paid under section 234F, but this is reduced to ₹1,000 if income is not more than ₹5 lakh. Further, interest under sections 234A, 234B, and 234C may be levied on unpaid tax. Late returns carry risks such as delayed refunds and non-acceptance of some exemptions and allowances for which an on-time submitted return is entitled.
How to file late return
The procedure of late return filing is identical to a regular return. The taxpayers need to log on to the income tax e-filing portal, choose the respective assessment year, and choose "Return filed under section 139(4)" while filing ITR form. They must enter accurate income details, deductions, and tax paid before they submit it. The return must be verified electronically or by physical filing after submission.
Amending delayed return
Delayed returns were not amendable until recently. However, the rules now allow amendments at the end of the assessment year or before assessment is completed, whichever occurs first. Taxpayers are therefore able to correct factual errors in income, deductions, or tax credits. Still, because periods are brief, taxpayers who file delayed returns should double-check facts beforehand to avoid mistakes that will necessitate amendment later.
Why timely filing matters
Although late returns are welcome, timely filing is best. Timely filing ensures access to all eligible deductions, quicker refunds, and reduced likelihood of penalties or notifications from the department. It also makes it easier to use returns as documentation of income for loans, visas, or investments. Taxpayers should view late filing as an option, but not a substitute, for punctuality in compliance with deadlines.
FAQs
Q. Can I claim deductions in a belated return?
Yes, deductions under sections such as 80C, 80D, and 80G can be claimed. Some benefits like carry forward of business losses or capital losses are though disallowed if you miss the initial deadline.
Q. What if I miss the belated return deadline too?
If you fail to meet the delayed return due date, you cannot submit ITR for the year unless there is condonation of delay by the tax department. You might lose refunds and also be charged penalty for non-filing in such scenarios.
Q. Will filing a delayed return reduce my prospects of receiving a refund?
Yes, refunds on late returns tend to be slower than those on timely returns. Since returns due on or by the deadline are given priority, taxpayers who have an extension must wait longer for any refund.
Q. Can a late return be corrected if I make a mistake?
Yes, modified returns can be made even for late returns, subject to being filed before the close of the assessment year or before the assessment is completed. This comes in handy if you overlooked to include income or deductions in your original late return.
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