Simply Save | Missed the tax return-filing deadline? File your return before March 31

December 31, 2021 - the extended due date for individuals to file income tax returns  for the assessment year 2021-22 – has just passed by. Despite several requests from individuals and chartered accountants’ associations for another extension, finance minister Nirmala Sitharaman ruled out any further extension. 

During the last few days, many complained that they were not able to access the income tax return e-filing portal or faced glitches in the final hours of the December 31 deadline. Those who failed to file income tax returns on time will now have to file a belated return under section 139 (4) of the Income Tax Act, 1961 before March 31, 2022. While you can exercise this option, it comes with a cost. For one, you will have to shell out a penalty of Rs 5,000 for delayed return  filing. This amount is restricted to Rs 1,000 if your income is less than Rs 5 lakh. Also, you wil not be entitled to interest on tax refund due, if any.  Moreover, you will not be able to carry forward or set off any losses incurred in financial year 2020-21. 

Also, those who completed the exercise before December 31 should not forget to verify the income tax returns filed. You have a window of 120 days from the date of having filed the returns to do so, without which, your returns will not be considered valid. You can either do it through the traditional, physical route or the electronic modes. 

Tune into Simply Save for insights from Preeti Khurana, Director, Regulation and Advocacy, Clear on consequences of not filing return before due date and the process for filing a belated return in such cases.