Missed The ITR Deadline? Here’s How To File A Belated Return & Avoid Penalties

If you missed the July 31, 2024, deadline for filing your Income Tax Return (ITR) for FY 2023-24, you still have the option to submit a belated return. It’s important to address this as soon as possible to minimize potential issues and penalties.

Deadline for Belated ITR Filing

The last date for filing a belated ITR is December 31, 2024. This deadline applies to returns for the 2023-24 financial year (assessment year 2024-25). A belated return is filed under Section 139(4) of the Income Tax Act, 1961, which applies when the original deadline has passed.

How to File a Belated ITR

Filing a belated ITR is similar to filing on time, with one key difference: you must select Section 139(4) on the ITR form instead of Section 139(1), according to an ET report.

Penalties for Late Filing

Under Section 234F of the Income Tax Act, individuals who file their returns late face a late filing fee. If you file before December 31, the penalty is Rs 5,000. However, if your total income does not exceed Rs 5 lakh, the penalty is capped at Rs 1,000. If your income is below the basic exemption limit, no late fees are imposed unless filing is mandatory.

In addition to the late filing fee, penal interest will be charged on any outstanding tax dues. Under Sections 234A, 234B, and 234C, penal interest is 1% per month on the due tax amount. Section 234A applies to self-assessment tax dues, while Sections 234B and 234C apply to non-payment or shortfall in advance tax payments, respectively.

Additional Disadvantages

Filing a belated ITR also results in the loss of the ability to carry forward losses from capital gains, business income, and other sources, with the exception of losses from house property.