Filing of Income tax return (ITR) is mandatory in India and is done annually based on the income earned and taxed by an individual. Nevertheless, for some reason or another, or due to pure negligence, some of the taxpayers fail to meet the stipulated deadlines. In case you have failed to file the ITR before the due date there’s nothing to worry about. However, it is possible to file a Rectangular Tax return after the season is over and for this reason you can file a belated ITR return where you meet the requirements of the law concerning tax compliance while at the same time avoiding penalties.
What does it mean when you file an ITR return late?
A belated ITR return therefore basically means the act of filing an income tax return in India at a time other than the legal time stipulated by the Income Tax Act of the country but still within the legally allowed grace period. The ITR filing usually has a deadline of July 31st for the individuals and November 30th for the business and if the filing is not done in this time one has the opportunity of filing the return before the March 31st of the next financial year.
Main Aspects Related To Belated ITR Return
- Eligibility -: Any taxpayer who could not file his or her ITR before the original due date can file a return which is referred to as a belated return.
- Filing Timeline -: This means that filing of belated ITR return can be done at any time before the end of the relevant assessment year that is before March 31st of the next financial year.
- Penalty and Fees -: Since the act of filing a return is done much later than the prescribed time late filing fees and also interest on the amount of tax that is payable is charged.
- Loss Carry Forward Restrictions -: Majority of the expenditure cannot be carried forward to the subsequent years in case of the failure to file their ITR on time except under the head “Income from House Property” only.
It Is Good to File a Late ITR Return?
It is always preferable to file a return even when it is done long after the deadline set by the law has elapsed. Here are some key reasons why you should file your belated ITR return.
- Avoid Legal Consequences -: We have heard that the Income Tax Department may go legal against those persons who do not file their ITR. If you have not filed a return, there is little chance if any of the above actions being taken against you.
- Payment of Penalties -: Getting back in is possible although it attracts a penalty charge; however, this is far much cheaper than the charges that are imposed where compliance is achieved none.
- Facilitates Refund Claims -: To get a refund from the tax department in case one is eligible, one will be able to do so only through filing his/her ITR regardless of the period that has elapsed.
- Loans and Credit Approval -: ITR is mostly required by the financial institutions while approving a loan or credit. Filing a belated return enables you keep record, as well as assisting you in consolidating loans without hitches.
- Carry Forward of Losses -: If you have losses under the head “Income from House Property”, then you can still carry forward the losses even if you file a return after the due date.
Penalties for Filing IT Return After the Deadline
Filing a belated return is allowed, but it does come with certain consequences.
- Late Filing Fees -: As per Section 234F of the Income Tax Act, if you have failed to file your income tax return within the given due date you’ll be levied a late filing fee. With regard to returns filed after the due date up to the date of sending the returns up to 31 December there is a penalty of Rs. 5000. If the return is filed after December 31st but before March 31st the fee increases to Rs. 10,000 Further, a fee of Rs. 5,000 has to be paid in the case of alteration of any particulars after filing the return. But, it may be noted that the penalty imposed is up to Rs. 1000 for the small taxpayers having an income less than Rs. 5 lakh.
How To File ITR Return After The Deadline?
Filing ITR return after the due date is as easy as filing ITR before the due date and they are almost identical. Here’s a step-by-step guide:
- Login to the Income Tax Portal -: A brief official online e-filing website of Income Tax is https://www. incometax. by visiting the official website that is www. aime. gov. in and sign in with the PAN/Aadhaar number as well as password.
- Choose the Assessment Year -: Choose the correct financial year that you are selecting when filing for the belated return.
- Select Form -: Based on your income slabs choose the appropriate income tax return form like ITR-1 for the salaried class, ITR-4 for persons who avail presumptive taxation scheme etc.
- Fill in the Details -: Give all kind of information required like income, allowable deductions, taxes paid etc. Make sure that all the information provided is correct, to reduct unnecessary mistakes.
- Select ‘Belated Return’ Option -: From the available options under the return filing section select “Filed under Section 139(4)” which means filing a revised return.
- Compute Tax and Pay Dues -: If there is something to pay as tax then compute it and pay the same through the existing modes like net banking or debit card.
- Submit and Verify -: Once you have provided all the details as mentioned above, you have to file your return and confirm it through Aadhaar OTP number, EVC or by physically posting the ITR-V form to CPC.
Some Of The Guidelines That You Need To Bear In Mind When Filing A Belated ITR Return
- No Extension Beyond March 31st -: You can not file a return after March 31st of the assessment year. But if this window is closed, then you are declared a defaulter and there are more legalities that follow.
- Check for Refunds -: If you are receiving a refund, make sure that you provide correct bank information and file the delayed return While doing your tax filing. This might be due to filing some papers at the IRS late or the papers may take long time to work through the system, this leads to a delay of the refund.
- Rectify Errors in the Current Year -: Since you cannot do an alteration of a late return, ensure that you keep on checking your entries before submission.
Conclusion
This is an effective way that people should use if they have not do the ITR return as they were supposed to do. While the penalties and limitations exist there are much more advantages of obeying the tax laws and avoiding terrible legal consequences. It is always best to file a case as a Free State than to not file it at all.
It is always recommended that an individual should always write down his/her tax obligations so that he/she can avoid a last-minute rush. In case of doubt or difficulty, it is advisable to seek services of a tax consultant or follow the official link of Income Tax e-filing to get assisted.
If you are still facing any problems or experiencing delays, don’t hesitate to consult a tax professional at ApkiReturn to resolve any issues.
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