Missed the ITR Filing Deadline? You Can Still File a Belated Income Tax Return. Check the Details

ITR Filing Deadline: Although more than seven crore income tax returns (ITR) were filed by 7 pm on July 31, 2024, hundreds of thousands of taxpayers still haven’t filed their returns. Those who missed the July 31 deadline can still file a belated income tax return. Here’s what you need to know.

What is a Belated Return?

A belated return, as per section 139(4) of the Income Tax (I-T) Act, is a return filed after the deadline has passed. Taxpayers who didn’t file their return by July 31 can still file a belated return.

Belated returns can be filed until December 31 of the relevant assessment year.

However, it is crucial to remember that taxpayers who file a belated return are still subject to penalties for late filing.

1. Penalty: Filing an income tax return after July 31 incurs a penalty of ₹5,000. For small taxpayers with an income below ₹5 lakh, the penalty is ₹1,000 if they file after the deadline.
2. Interest: If there is a tax liability, taxpayers must pay interest at the rate of 1% per month under section 234A of the Income Tax (I-T) Act from August 1 until the tax is paid.
3. Entitlement to Exemptions: Taxpayers who file their ITR after July 31 lose their entitlement to exemptions available under the old tax regime.
4. Carry Forward of Losses: If you miss the deadline to file your income tax return, you cannot carry forward capital losses to subsequent years.

Chirag Chauhan, a Mumbai-based chartered accountant, explained, “Missing the July 31 deadline means forfeiting benefits tied to the old tax regime, as taxpayers will automatically be shifted to the new tax regime, which is the default option.”

For FY 2023-24, the new tax regime is the default. Therefore, anyone filing an income tax return after July 31 will be moved to this regime, resulting in the loss of entitlement to deductions and exemptions under sections 80C and 80D, among others.

It’s important for taxpayers to ensure they verify their return after submitting the income tax return.