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Is It Possible To File Tax Return Even After Missing The Deadline?
Written by Gagandeep Arora - Printed on - Date - 15th March 2022
Being responsible citizens, we all try to pay taxes on time. To err is human so any unforeseen circumstances in life may lead to our failure of filing tax returns on time. If an assessee fails to file his Income Tax Return before the due date, then as per section 139(4) of the Income Tax Act 1961, then they can file a belated return. To file the belated Tax Return for the assessment year 2020-21 the last date is 31 March 2022. Is it not appropriate that the month of the tax begins with April Fool’s Day and ends with cries of May Day.
A belated return can be filed three months before the end of the relevant assessment year or before the completion of an assessment, whichever is earlier. However, for FY 2020-2021, an individual can file ITR till 31 December. As this year has been a difficult year due to the coronavirus pandemic and some tiny problems at the beginning of the newly launched income tax portal, the date of filing belated ITR has been extended from 31 December 2021 to 31 March 2021. Let us understand the procedure for filing a belated Tax Return.
The Difficulties Faced In Filing A Belated Tax Return
Nothing in this world comes free of cost, so yes you will pay a price for being late in filing a belated ITR. A penalty is levied along with which you lose certain benefits for not following the income tax deadline. A few disadvantages faced for filing late ITR are-
Penalty
As the government has reduced the time limit of filing belated ITR by three months, accordingly an amendment has been made in Sec 234F. That states that if the belated ITR is filed, then a maximum penalty of Rs. 5,000 will be levied. Although, if the total income of the taxpayer is less than Rs. 5 lakh, the penalty amount will not exceed Rs. 1,000.
Cannot Carry Forward Loss
In case of filing a belated ITR, you cannot carry forward losses under the following head of income-
- Income from business and profession including speculation business
- Capital gains
- Income from other sources
The important point to understand here is that even if the taxes have been paid in time if the return has been filed late by the assessee then also you cannot carry forward the losses. An exception to this rule is for loss from house property, which is allowed to be carried forward.
Interest under Section 234A
If there is any unpaid tax liability then penal interest on that will be levied till the date tax liability is due. In case there is no tax due then the assessee will not be liable to pay this interest only due to the belated filing of ITR for FY 2020-2021.
Some Taxpayers Are Exempted From Paying Penalty Even After Filing Belated ITR
A person whose gross total income does not exceed the basic exemption limit as mentioned under section 139(1) before taking into account the deductions under section 80 C to 80 U. According to the new tax regime, the basic exemption limit will be Rs. 25 lakh irrespective of the assess’s age. Similarly, if an assessee chooses the old tax regime then the basic exemption limit will depend upon the age of the assessee.
Presently, the basic exemption limit for an assessee below the age of 60 years is Rs. 2.5 lakh. For senior citizens aged 60 years and above but below 80 years, income up to Rs. 3 lakh is exempted from tax. For assesses above 80 years that is super senior citizens, the basic exemption limit is up to Rs. 5 lakh.
You can still e-File your Tax Returns - Click here for CA Assistance
