The Income Tax Return (ITR) filing deadline is a crucial date that individuals and businesses must keep in mind each year. Filing your ITR within the specified deadline is not only a legal obligation but also a responsible financial practice. However, life can sometimes get busy, and you might find yourself unable to meet the deadline. So, what exactly happens if you miss the ITR filing deadline?https://www.incometax.gov.in/iec/foportal/
What is an ITR?
An ITR is a document that needs to be filed with the Income Tax Department of India as a declaration of an individual’s income and assets. This information is used to compute the income and the tax liability of an individual. In India, you must file an ITR under the following circumstances:
- If your total income exceeds the tax-free threshold based on your age.
- While seeking an income tax refund.
- If you’ve earned from or invested in foreign assets during the fiscal year.
- For companies or firms, regardless of profit or loss.
- If you’ve incurred losses in business/profession or under capital gains and wish to carry them forward to subsequent years.
- If you’ve deposited a cumulative amount of Rs 1 crore or more in one or more current accounts with a bank.
- Upon depositing over Rs 50 lakh in your savings bank accounts.
- If your foreign travel expenses exceed Rs 2 lakh.
- When yearly electricity expenditure surpasses Rs 1 lakh.
- If tax deducted at source (TDS) or tax collected at source (TCS) exceeds Rs 25,000 (or Rs 50,000 for senior citizens).
- When business turnover exceeds Rs 60 lakhs.
- If income from your profession exceeds Rs 10 lakhs.
What Are the Consequences of Missing the ITR Deadline?
Late Filing Fees
One of the major consequences of late filing of ITR is that you will have to pay a late filing fee. Under Section 234F, if you fail to file your ITR within the due date, a late fee of Rs 5,000 will be applicable. However, if your annual income is less than Rs 5 lakh, the late fees would be limited to Rs 1,000.
Interest Penalty
As per Section 234A, if you don’t pay your taxes on time, you will be liable to pay an interest of 1% per month on the outstanding tax amount. This interest is calculated from the date you file your return for the relevant financial year till the due date.
Loss of Carry Forward Losses
If you file the income tax return within the due date, you will be able to carry forward losses to subsequent years. You can use such losses to set off against your future income. However, if you miss the deadline, you will not be able to carry forward these losses.
Delayed Refunds
In case you’re entitled to receive a tax refund from the government for excess taxes paid, you must file the returns before the due date to receive your refund at the earliest. Delayed filing can lead to delayed refunds.
So, if you miss the ITR filing deadline, you do have the option to file a late tax return. However, it is essential to be aware that filing a belated tax return comes with its consequences, namely the imposition of a penalty.
What Is Belated Tax Return?
A belated return is a return filed after the deadline i.e. 31st July of the next financial year but before 31st December of the next financial 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 2024-25 is 31st July 2025. If you miss filing your ITR within the original deadline, then you can file a late return, known as Belated Return.
Due date for belated return for the financial year 2023-24 was extended until 15th January. It is to be noted that there is no further extension for belated return filing for FY 2023-24.
How to File a Belated Income Tax Return?
Step 1: Log in to your Income Tax e-Filing portal account using your login details.
Step 2: From the ‘e-File’ menu, choose ‘Income Tax Returns’ and then select ‘File Income Tax Return’.
Step 3: Select the assessment year you are filing for.
Step 4: Click on ‘Start New Filing’ to begin.
Step 5: Choose the filing status that best describes your situation.
Step 6: Select the correct ITR form needed for your tax filing.
Step 7: Verify your personal details in the ‘Personal Information’ section for accuracy.
Step 8: Indicate if you are filing a belated return by selecting Section 139(4) in the filing section.
Step 9: Enter your income details under the appropriate categories and proceed to make any necessary tax payments
FAQs
What Is Updated Return?
An updated return is a provision introduced in the Finance Act, 2022 that allows taxpayers to disclose their actual income if they missed the deadline for filing a belated or revised return. This means that if you realize you made a mistake or missed reporting some income after filing your return, you have a chance to correct it within 12 months after the assessment year ends.
However, there are some limitations with an updated return. You cannot declare any losses, reduce your tax liabilities, or make changes if there are ongoing search or survey procedures related to your tax affairs.
What Is Defective Return?
A defective return is when your income tax return (ITR) has mistakes or is not filed correctly. This can happen even though online tools have made it easier to file accurately. If the tax department finds issues with your return, they will send you a notice. It’s important to pay attention to these notices and fix any problems within 15 days. If you don’t make the necessary corrections, your return will be considered invalid.
What is Revised Return?
If a taxpayer submits an original or belated income tax return (ITR) but later discovers an error or omission due to a genuine mistake, they have the option to file a revised return under section 139(5) of the Income Tax Act. A revised return allows for the correction of any inaccuracies or oversights made by the taxpayer in their previously filed return.
The deadline for filing a revised return is until 31st December of the relevant assessment year, provided that the assessment process has been completed. It’s worth noting that even a belated return can be revised within this time limit, and a revised return can be revised again if there is a need to correct any errors or omissions identified in the initial revised return.