Missed ITR due date or submitted incorrect details in ITR? Here’s all you need to know

ITR filing has a deadline decided by the Central Board of Direct Taxes (CBDT), missing the due date deadline leads to various repercussions also furnishing incorrect details would invite trouble to taxpayers. However, the Income Tax Act provides remedies to file ITR after due dates and additional time to rectify mistakes if ITR is filed through belated, revised and updated returns in certain circumstances with few caveats.

Repercussions of non-filing of ITR

1. Late filing fees - Under section 234F of the Income Tax Act, the following fees are to be levied for filing returns after the due date.

• Income above ₹5 lakh - ₹5,000
• Income up to ₹5 lakh - ₹1,000
• Income below basic exemption - No late fees

2. Interest on tax due: U/s 234A of the act the taxpayer is required to pay interest in case of delay in filing a return at 1% per month or part thereof on tax due until the payment of taxes. The interest calculation under the said section will start from the date falling immediately after the due date.

3. Delay in refund: Late filing delays the processing of the return if you are eligible for a refund.

4. Ineligibility for deduction: Certain deductions would be foregone and losses would not be carried forward if the return was not filed.

5. Difficulty in financial transactions: ITR is proof of income and non-filing of ITR can lead to disapproval of your loan and impact on credit score and visa processing.

Repercussions of furnishing incorrect details

1. Misreporting or underreporting: U/s 270A of the act an assessing officer (AO), a commissioner (appeals), a principal commissioner, or a commissioner may direct a person to pay a penalty if he under-reports or misreports his income. The penalty may range from 50% to 200%.

2. Penalty u/s 271(1)(c) penalty for furnishing inaccurate particulars of income.

3. Scrutiny and assessment: If discrepancies are found income tax department may scrutinise them in detail.

4. Prosecution: Criminal prosecution may be initiated under sections 276C and 277 of the Income Tax Act for deliberate falsification or concealment of income.

Income-tax remedies

1. Belated return (u/s 139 (4): It refers to the ITR filed after the original due date specified under the Income Tax Act. While a belated return has consequences, it is better than facing potential penalties.

Deadline for filing a belated return: On or before December 31 of the relevant assessment year. For the AY 2024-25, the timeline to file a belated return is on or before December 31, 2024, whereas the original due date in case of no-audit case is July 31, 2024.

However, late fees u/s 234F and interest u/s 234A, 234B and 234C would be applicable along with the following repercussions:

• Carrying forward of loss: Losses incurred like business and capital losses, cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward.
• Deductions/exemptions disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing.

2. Revised return (u/s 139 (5)): A revised return refers to a return furnished for correcting or amending an originally furnished return which can include a belated return of a particular assessment year. Revised return provides the opportunity to correct any mistake, omission or inaccuracies in the original return.

The due date for revised return: A revised return can be filed up to 31st December of the relevant assessment year (same as a belated return).

Instances where filing a revised return may be necessary

• Errors: If you discover any errors or omissions in your original ITR, such as misreporting income, deductions, or other details, you have the option to submit a revised return.
• Omission: In cases of an unintentional omission of specific income sources or neglect to include certain deductions or exemptions in your original ITR, filing a Revised Return allows you to incorporate these details.

All the other things remain the same as filing a belated return.

3. ITR U - (u/s 139 8A) or updated return: The Finance Act, 2022, introduced the concept of updated return to allow a longer duration for an assessee to file the return of income. An updated return can be filed within 24 months from the end of the relevant assessment year. That means it can be filed even after the expiry of time limits specified for the filing of a belated return or revised return of income.

For example, if you filed an ITR for AY 2024-25 and missed the revised/belated return filing window, you can file an ITR-U after the end of the assessment year, i.e. March 31, 2024, but within two years from there, i.e. 31 March 2027.

An updated return can be filed in the following cases:

• Did not file the return (missed return filing deadline and the belated return deadline)
• Income is not declared correctly
• Chose wrong head of income
• Paid tax at the wrong rate
• To reduce the carried forward loss/unabsorbed depreciation/tax credit u/s 115JB/115JC

A taxpayer can file only one updated return for each assessment year.

ITR-U cannot be filed in the following cases:

• Updated return has already been filed.
• For filing nil return/loss return.
• For claiming/enhancing the refund amount.
• When updated return results in lower tax liability.
• Search proceeding u/s 132 has been initiated against you.
• A survey is conducted u/s 133A.
• Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
• If assessment/reassessment/revision/re-computation is pending or completed.
• If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR).

Additional tax/penalties on ITR U -

ITR U filed -

• Within 12 months of the end of the relevant AY - an additional tax of 25% on computed tax and interest.
• Within 24 months of the end of the relevant AY - an additional tax of 50% on computed tax and interest.