Missed the Income Tax Return (ITR) filing deadline? You still have the option to file a belated return. Here’s what you need to know
Learn about penalties, interest, loss of exemptions, and carrying forward of losses. Ensure compliance and consult a tax professional for assistance.
Missed the Income Tax Return (ITR) filing deadline? You still have the option to file a belated return. Here’s what you need to know
Filing a Belated Return
According to Section 139(4) of the Income Tax Act, taxpayers who missed the July 31 deadline can file a belated return by December 31 of the relevant assessment year.
Penalties and Implications:
1) Penalty: Filing a belated return attracts a penalty of ₹5,000. For taxpayers with an income below ₹5 lakh, the penalty is ₹1,000.
2) Interest: A penalty of 1% per month under Section 234A is applicable from August 1 until the tax is paid.
3) Loss of Exemptions: Late filers lose the benefits of exemptions available under the old tax regime and are automatically switched to the new tax regime, which means losing deductions under Sections 80C and 80D, among others.
4) Carry Forward of Losses: Taxpayers who miss the deadline cannot carry forward capital losses to subsequent years.
It's essential to verify your return online once filed to ensure everything is in order. For more details or assistance, consult a tax professional.
