The deadline to file your income tax returns, there’s no need to panic. You still have the option to file your tax returns after the due date, although with a penalty. This article provides a comprehensive guide on understanding and filing belated returns, ensuring you navigate the process smoothly while avoiding potential financial penalties.
What is Belated Return?
A belated return is a return filed after the deadline i.e. 31st July of the assessment year but before 31st December of the assessment year. While late filing has consequences, it’s still better than facing potential penalties for non-compliance.
The due date to file income tax return for the Financial Year 2023-24 is 31st July 2024. If you miss filing your ITR within the original deadline, then you can file a late return, known as Belated Return.
Filing ITR for Previous Year
Missed filing ITR for previous year within due date, you can file a belated return on or before 31st December of the relevant assessment year. For Example, for the AY 2024-25, the timeline to file a belated return is on or before 31 December 2024.
In case you miss the belated return deadline, then you may file ITR-U in certain specified cases.
The amendment vide Finance Act 2021 reduced the timeline of filing the belated return. With effect from AY 2021-22, you can file the belated return three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
What is an ITR-U or Updated ITR?
ITR-U is a form that allows taxpayers to correct errors or omissions on their ITRs up to two years from the end of the relevant assessment year to update their return.
In the Union Budget 2022, the government introduced the ITR U form for updating income tax returns.
ITR U form is a rescue for those who have not filed their ITR or made inaccurate and false entries while filing their income tax returns.
Section 139(8A) under the Income Tax Act allows you a chance to update your ITR within two years, i.e., 24 months from the end of the relevant assessment year. These two years are calculated from the end of the year in which the original ITR was filed.
For instance, for AY 2023-24, you can file an ITR-U after the end of the assessment year, i.e., 31 March 2024, but within two years from there, i.e., 31 March 2026. File ITR-U.
Regardless of whether the taxpayer has filed an original, belated, or revised ITR or has completely missed filing the ITR in a specific financial year, he/she can file an ITR-U upto 2 years of the relevant assessment year.
Drawbacks of Filing Late Return
The following are the disadvantages of filing a belated return:
- Interest may be applicable under sections 234A, 234B and 234C.
- A late fee will be levied under Section 234F while filing a belated return:
| Gross total income | Late fee |
| up to Rs. 2.5 lakh | No Penalty |
| Rs. 2.5 lakh – Rs. 5 lakh | Rs 1,000 |
| more than Rs. 5 lakh | Rs 5,000 |
- If you have incurred losses, like business and capital losses, they cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late.
- Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.
Who is Eligible to File Form ITR-U Under Section 139(8A)?
Any taxpayer can file an updated return u/s 139 (8A) whether he has furnished/not furnished an original return, revised return, or belated return in case of any omission, error, or wrong statement in his earlier return of income.
An Updated Return can be filed if:
- Return previously not filed
- Income not reported correctly
- Wrong heads of income chosen
- Reduction of carried forward loss
- Reduction of unabsorbed depreciation
- Reduction of tax credit u/s 115JB/115JC
- Wrong rate of tax
Who is Not Eligible to File Form ITR U u/s 139 (8A)?
- If an updated return is already filed
- If an updated return is the return of loss
- If an updated return reduces Income Tax Liability in the return filed earlier
- If the updated return results in an increase of Refund
- If a search has been initiated under Section 132
- If books of Accounts or any other documents are called for by the Income Tax Department under section 132A.
- If the survey has been conducted under section 133A
- If any proceeding of assessment, reassessment, re-computation, or revision is pending or completed for that relevant year
- If the Assessing Officer has information against such person under the Prevention of Money Laundering Act or Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act or Benami Property Transactions Act or Smugglers and Foreign Exchange Manipulators Act and the same has been communicated to the assessee.
- If the information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him prior to the date of furnishing of return under this subsection.
- Other Notified Persons
What is the Time Limit to File Updated Return?
The time limit to file an updated return u/s 139 (8A) is 24 months from the end of the relevant assessment year. The updated return of FY 22-23 (AY 2023-24) can be filed till 31st March 2026.
For example,
| Assessment Year | Last Date of Updated ITR Filing |
|---|---|
| AY (2021-22) | 31 March 2024 |
| AY(2022-23) | 31 March 2025 |
| AY(2023-24) | 31 March 2026 |
How to File Belated Returns?
Step 1: Log in to your account on the e-filing account
Step 2: Click on ‘e-File‘ > Choose ‘Income Tax Returns‘ and > Select ‘File Income Tax Return‘
Step 3: Select the relevant assessment year
Step 4: If you select the mode of filing as ‘Online’, follow Steps 5-10.
Step 5: Click on the ‘Start new filing’ button
Step 6: Select the applicable status
Step 7: Now, select the applicable ITR form
Step 8: Click on the ‘Personal Information’ section and ensure all your personal details are correct.
Step 9: Scroll down to the filing section and select 139(4).
Step 10: Fill in all your income details under various source heads and proceed to make the tax payment.
How to File the Missed Returns For FY 2023-24
- Request the Income Tax Commissioner or the prescribed authority to permit you to file income tax returns and state the reason for missing the deadline. The officer can accept your request based on the following criteria:
- The claim is correct and genuine.
- The case is based on genuine hardship of merits.
- A refund has resulted due to excess tax deduction, TDS, advance tax, or self-assessment tax.
- Any other person cannot assess the tax under the Income Tax Act.
- If you have not paid the tax for FY 2023-24, you must pay the tax along with applicable interest under Section 234A, 234B, or 234C. You must pay the tax even if you are unable to file your income tax returns.
- It may so happen that you have paid your taxes on time but missed filing returns. In this case, you cannot file returns or apply for a condonation of delay. The income tax department may issue a notice under Section 271F for not filing ITR. You may have to pay a penalty of up to Rs.5,000 for missing the deadline. If you have a genuine explanation for not filing and if the officer is satisfied with the reason, you may not have to pay the penalty.
- The income tax department can take legal action against you for not filing returns, such as issuing a notice and penalizing you. In the worst-case scenario, you may be prosecuted and a sentence of imprisonment for up to seven years.
- If you receive a notice from the income tax department, you must respond to it on the income tax e-filing portal and file the ITR to comply with the notice.
- If you have under-reported the income, a penalty of up to 200% of the tax payable will be levied. In case the taxpayer has paid taxes with interest after the deadline but has under-reported the income, the assessing officer may excuse his penalty, and no penalty will be levied on him. Though there is an alternative in case you miss ITR filing by the due date, it is recommended to file returns by 31 July of the assessment year. For e.g., you should file your ITR by 31st July 2024 for the FY 2023-24.
FAQs
Can a belated return be revised?
Can I claim a tax refund through a belated return?
Yes, you can claim a tax refund while filing a belated return u/s 139(4).
You must pre-validate your bank account to receive the refund, as the refund will be directly credited to your bank account added on the e-filing portal.