Missed ITR deadline? Don’t worry, here’s what to do next

The deadline for filing Income Tax Returns was July 31. The Income Tax department has not announced any extension for this deadline.

For individuals and businesses who don’t have to get their accounts audited, the deadline to file ITR has passed. What now?

Belated return

If you missed the deadline for filing ITR, you can file a ‘belated return’ up to three months before the assessment year ends. This means you can file a belated return for this year until December 31, 2024. However, a belated return comes with its own penalties and interest, so make sure you read properly before filing one.

Consequences for filing after the due date

• Taxpayers can choose to file taxes under the old tax regime or the new tax regime. However, if one misses the ITR deadline, he/she will be assigned the new tax regime by default.

• According to Section 234F, the late fee for filing income return after the deadline mentioned in Section 139(1) is ₹5,000 and if the total income is below ₹5 lakh per annum, the fee is ₹1,000.

• There will be interest charged on unpaid taxes. The interest will start accruing from the deadline (due date) and will be charged until the payments are settled. The interest rate will be 1% per month or part of the month on the outstanding tax.

• Taxpayers will not be allowed to carry forward certain losses to the future. Only losses from house property are allowed to be carried forward if you file ITR after the deadline.

• Under section 276CC, a taxpayer can be imprisoned for not paying taxes. However, the prosecution under this section is mainly for evasion of taxes. If the tax payable or evaded is more than ₹25,000, a taxpayer can be jailed for 6 months to 7 years along with a fine.

• Filing an ITR will help you claim refunds if you overpay any tax amount. You can still claim for refunds if you file a belated return, but you might miss on interest on the refund under Section 244A.

• The IT department can issue notices for delayed filing or non-filing of ITR.

If you missed filing your ITR, go ahead and file a belated return to avoid any further penalties. Filing a belated return is similar to filing a normal one and can be done in the same way.

If you make a mistake while filing your income tax return, you are allowed to file an ‘updated return’, that acts as a revised ITR to correct returns filed on time or even belated returns. Remember, you cannot file for a reduced tax liability under an updated return.