Are you late in filing your income tax returns and you are wondering what to do? You don’t have to wait for the Tax department to chase after you. There is an option of filing Belated Income tax returns and this article will give you insights on how to go about it. The due date for Income Tax Return (ITR) filing for the fiscal year 2020 – 2021 elapsed on 31st December 2021. However, you still have time till 31st March 2022 to file belated returns.
What is a Belated Income Tax Return? Just like the name implies, a Belated Income tax return refers to a return filed after the due date has lapsed.
- Who can file a Belated ITR?
Any assess whether an individual or a business owner who has missed filing ITR by the regular due date can file a Belated ITR on payment of a nominal late fee U/S 234F.
- Why you Should File It?
Filing ITR year on year offers numerous advantages as follows
- Makes you Tax Compliant
- Acts as Income proof while obtaining any kind of loan
- Helps in Quick VISA Processing
- Enables you to obtain a refund of excess taxes paid with interest
- Enables carry forward of losses to future years which helps in reducing the tax liability of future years
- Saves you from the stress of receiving Income Tax Notices for Tax Demands
Filing Belated ITR gives all the above-mentioned advantages except that current year losses cannot be forward to future years in case of Belated Filing.
- What are the Timelines for Filing Belated ITR?
The Regular and Belated ITR filing due dates are shown below:
|FY 20-21||FY 21-22|
|Category of Taxpayer||Extended Due date as per the CBDT Circular||Belated ITR Filing Due Date||Regualr Due dates||Belated ITR Filing Due Date|
|Individuals/HUF/AOP/BOI ( Cases where Books of Accounts are not required to be Audited||31.12.2021||31.03.2022||31.07.2022||31.12.2022|
|Businesses Requiring Audit||15.03.2022||31.03.2022||31.10.2022||31.12.2022|
|Businessess where Transfer Pricing Audit is applicable||15.03.2022||31.03.2022||30.11.2022||31.12.2022|
A provision under the Income Tax Act section 139(4) states that, when a taxpayer is unable to file their returns before or on the due date of the relevant Assessment Year (AY), they have an option to file Belated returns before the end of the relevant AY. The due date for filing Belated Income Tax Returns is normally 31st December. However, the Covid pandemic made the Central Board of Direct Taxes (CBDT) push the actual income tax return filing dates from 31st July 2021 to 30th September 2021 and then to 31st December 2021. Thus for AY 2021-22 you can file your belated returns by 31st March 2022.
- What are the Penalties for Filing Belated ITR?
Late Fees U/S 234F
Belated income tax return filing attracts a late fee u/s 234F of the Income Tax Act. The Late fee depends on the Total Income of the assesse and is calculated as per the below table.
|Late Fee U/S 234 F|
|Total Income||Late Fee -234F|
|Upto Rs 2.5 lacs||Nil|
|Above Rs 2.5 lacs – Upto Rs 5 lacs||Rs 1000|
|Above Rs 5 lacs||Rs 5000|
Interest U/S 234A
Assesses that have already surpassed the regular due date of ITR Filing attract a penal interest
under section 234A @ 1% per month of the outstanding tax amount on the due date of ITR Filing
For Instance, Mr. Shantanu’s Net Tax Payable as of 31.03.2021 for the FY 20-21 is Rs 1,00,000. Now he misses filing ITR by 31st December ’21 and intends to complete the Belated ITR Filing by 15.02.22. He would be liable to Interest U/S 234A for the delay in filing of ITR as follows
Outstanding Tax – Rs 1,00,000
Due date of ITR – 31.12.2021
Date of Filing ITR- 15.02.2022
Period for Calculating Interest U/S 234A- 01.01.20222 TILL 15.02.2022 ( 1 month 15 days but will be considered as 2 months as part of month is considered as Full month)
Rate of Interest -1% per month
Penal Interest U/S 234 A = Rs 1,00,000 *1%* 2= Rs 2,000
Calculate Penal Interest U/S 234 A , B and C – Use Online Calculator
*Source Income Tax India
- What are the disadvantages of Filing Belated ITR over a Regular Filed ITR?
Under Belated Income Tax Return filing, you cannot carry forward losses from capital gain, business, and profession to upcoming years. Only losses from house property and unabsorbed depreciation can be carried forward.
Under Belated Income Tax Return Filing Interest is not paid on the Tax refund due as per the provisions of Section 244A Income Tax Act 1961.
For Filing Belated ITR you would be liable to pay Late Fee u/s 234F and Penal interest u/s 234A.
- Statistics on Belated ITR
The following table shows the statistics of ITR’s filed, in different Assessment years since 2017:
|Assessment Year (AY)||Approximate ITRs Filled|
As it’s evident the number of ITR’s filed is increasing every year. However, there is a shortfall in ITR’s filed for the AY 2020-21. This means that there is a total number of about 2.9 crores assesses who have not yet filed ITRs. If you are among this number then the only step you have to take is to go for Belated ITR Filing and become Tax Compliant and Stress-Free.
- What are the documents required to file Belated ITR and Who can do it for you?
The process of filing a Belated ITR is the same as filing the Regular ITR. The documents to be kept handy before proceeding to File your ITR are
- PAN Card
- Aadhar Card
- Form 16
- Form 16A ( If you have income other than Salary)
- Annual Information Statement
- Bank Statements for all bank accounts
- Details of Investments u/s 80C, 80D, Home loan payments, and other savings or deductions which qualify for Deduction from Income
If your income details are simple, straightforward plus you have the time and patience to complete the Belated ITR Filing on your own, you can visit the E Filing Portal of the Income Tax Department and complete the filing on the below link
*Source Income Tax India
However, if you are willing to complete Belated ITR Filing with the below advantages
- Accuracy in calculating the Taxable Income
- Claiming all possible Deductions as applicable to you
- Minimizing your Taxes
- ITR form filled with precision by professionals
- Reducing the possibility of receiving ITR notices due to defective ITR Filing
Then make your choice wisely, Choose The Tax Planet
The Tax Planet Tip
After 31st March 2022, it will ITR Filing option for AY 21-22 will no longer be available. Your returns will no longer be belated but missed returns. Missed ITR filing is more complex as it can only be done with a notice from the IT department. Therefore, file ITR now to avoid notice from the IT department.