Belated Return Section 139(4): Penalty, How to File Income Tax Return After Due Date?
Updated: Oct 28
A belated return is the return that is filed after the due date. Section 139(4) of the Income Tax Act empowers the taxpayer to submit a belated return if he does not file a return by July 31. This could be done until December 31 of the assessment year or before the completion of the assessment, whichever occurs earlier.
It is crucial for taxpayers to be aware of the penalties associated with filing a belated return. Therefore, the article explains some of the key provisions of compliance of Section 139(4) which the taxpayer should be aware of.
Table of Content
Meaning of Belated Return under 139(4)
A belated return is an income tax return filed after the due date, typically July 31st each year, for individuals not subject to audits. If an individual fails to meet this deadline and files their return after July 31st but before December 31st, it is considered a belated return.
For individuals subject to tax audits, the deadline is September 30th. Any return filed after this date is also termed a belated return and is filed under section 139(4) of the Inc penalties ome Tax Act. It's important to note that filing a belated return may incur additional interest on taxes owed.
Who can File Belated Return under Section 139(4)?
Individuals with taxable income exceeding the prescribed limit must file an income tax return.
Salaried individuals, even if taxes are fully deducted through TDS, must file if their income surpasses the taxable threshold.
Individuals with signing authority in foreign accounts are required to file returns.
Individuals subject to audit due to turnover or gross receipts exceeding the prescribed limit must file by the specified due date.
Individuals who have deposited an amount exceeding Rs. 1 crore during a financial year in a current account held with a cooperative bank or a bank.
individuals who have spent more than 2 lakhs on foreign travel in the relevant year.
individuals who have a total electricity bill exceeding Rs. 1 lakh.
Business owners, professionals, and companies are obligated to file income tax returns.
Non-resident Indians (NRIs) with income sourced in India or foreign income deemed to be received in India may need to file returns.
Those seeking a refund of excess taxes paid during the financial year must file an income tax return.
In other words, if someone who is supposed to file an Income Tax Return (ITR) misses the deadline, they can still file a belated return. When filing the ITR, they need to choose section 139(4).
Belated Return under Section 139(4): Penalties for Late Filing
Failing to submit your Income Tax Return (ITR) by the specified due date can lead to the following consequences:
1. Interest Penalty under Section 234A:
Taxpayers are liable to pay simple interest at a rate of 1% per month or part thereof for delayed ITR filing under Section 234A.
Interest is calculated from the ITR filing due date to the actual filing date, resulting in higher interest payments for delayed submissions.
2. Late Filing Fees under Section 234F:
A maximum late filing penalty of Rs. 5,000 is applicable under Section 234F.
If the total taxable income exceeds Rs. 5 Lakh, the penalty is Rs. 5,000.
For total taxable income below Rs. 5 Lakh, the penalty is Rs. 1,000.
No penalty is levied if the total taxable income is below Rs. 2.5 lakh.
What are the other Consequences of Filing a Belated Return?
Losses, 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 even if you file your returns late.
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. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.
How to File Belated ITR under Section 139(4)?
If you find yourself in a situation where you need to file a belated return, whether due to oversight or other reasons, the process can be navigated smoothly using the Income Tax Portal. Here's a comprehensive guide on filing a belated return, both online and offline:
Online Method: To File a Belated Return
Step 1: Log in to Your Account
Begin by logging in to your account on the Income Tax e-filing portal.
Step 2: Navigate to e-File
Click on ‘e-File’ in the portal.
Choose ‘Income Tax Returns.’
Select ‘File Income Tax Return.’
Step 3: Select Relevant Assessment Year
Choose the assessment year for which you are filing the belated return.
Step 4: Mode of Filing
If filing online, proceed to Steps 5-10.
If opting for offline filing, skip to Step 11.
Step 5: Start New Filing
Click on the ‘Start new filing’ button to initiate the process.
Step 6: Select Taxpayer Status
Choose the applicable taxpayer status based on your profile.
Step 7: Choose ITR Form
Select the relevant Income Tax Return (ITR) form based on your income sources.
Step 8: Verify Personal Information
Navigate to the ‘Personal Information’ section and ensure all personal details are accurate.
Step 9: Filing Section and 139(4)
Scroll down to the filing section and select option 139(4) for belated return filing.
Step 10: Income Details and Tax Payments
Fill in all income details under various source heads and proceed to make tax payments, if applicable.
Offline Method: To File a Belated Return
Download the Offline ITR Preparation Utility.
Utilize the utility to prepare the ITR offline.
Upload the generated .json file and proceed to verification.
By following these steps, you can successfully file your belated return, ensuring compliance with tax regulations
Guidelines for Filing Missed Return for Previous Financial Year under Section 139(4)
If you failed to file your income tax return within the initial deadline, there is still an opportunity to rectify the situation. You can file a belated return until the 31st of December of the relevant assessment year. However, if this deadline is also missed due to valid reasons, you may seek to file a condonation of delay request, requesting the income tax authorities to condone the delay.
Here's a step-by-step guide on how to proceed:
1. Condonation of Delay Request:
Request the Income Tax Commissioner or the prescribed authority for permission to file income tax returns, clearly stating the reasons for missing the deadline.
The officer may consider your request based on criteria such as the correctness and genuineness of the claim, genuine hardship, eligibility for a refund, and the inability of any other person to assess the tax under the Income Tax Act.
2. Tax Payment and Interest:
If you have not paid the tax for the relevant financial year to which the belated return pertains, make the tax payment along with applicable interest under Section 234A, 234B, or 234C. Even if you are unable to file your income tax returns, paying the tax is essential.
3. Penalties and Notices:
If taxes were paid on time, but returns were not filed, penalties under Section 271F may be imposed, with a potential penalty of up to Rs. 5,000.
Respond to any notices from the income tax department promptly through the income tax e-filing portal.
4. Legal Consequences:
Failure to file returns can lead to legal action, including notices and penalties.
In extreme cases, prosecution with a sentence of imprisonment for up to seven years may be pursued.
5. Under-Reported Income:
If there is an under-reported income, a penalty of up to 200% of the tax payable may be levied.
The assessing officer may excuse penalties if taxes with interest were paid after the deadline but under-reporting occurred.
While there are options to rectify missed ITR filings, it is advisable to file returns by the original due date to avoid complications and legal consequences.
What if You Missed the Deadline for Filing Belated ITR?
If the belated return deadline is missed, ITR-U can be filed in specific cases. Following the Finance Act 2021 amendment, the timeline for filing belated returns has been reduced. Starting from Assessment Year 2021-22, the belated return can be filed up to three months before the end of the relevant assessment year or before the completion of the assessment, whichever comes first.
FAQ
Q1. Is it possible to file an Income Tax Return (ITR) after the due date?
Yes, under Section 139(4) of the Income Tax Act, a belated return can be filed after the due date. However, penalties, including interest and late filing fees, may apply.
Q2. What is a belated return under Section 139(4) of the Income Tax Act?
A belated return is an ITR filed after the original due date, under Section 139(4) of the Income Tax Act. Taxpayers who missed the due date can file until December 31 of the assessment year or before the assessment completion, whichever comes earlier.
Q3. What are the penalties for filing a belated return?
Interest under Section 234A: A 1% monthly interest on unpaid taxes from the due date until payment.
Late Filing Fee under Section 234F: Rs. 5,000 if income exceeds Rs. 5 lakh, and Rs. 1,000 if income is below Rs. 5 lakh. No late fee if income is below the basic exemption limit.
Q4. Can I revise a belated return?
Yes, under Section 139(5) of the Income Tax Act, a belated return can be revised. The deadline for filing a revised belated return is December 31 of the assessment year or before the completion of the assessment, whichever is earlier.
Q5. Is e-verification mandatory for belated returns filed under Section 139(4)?
Yes, e-verification is required for all returns, including belated ones. E-verification must be completed to validate the return, as per Section 139.
Q6. Can a taxpayer claim a refund by filing a belated return?
Yes, taxpayers are eligible for a refund by filing a belated return under Section 139(4). Ensure bank account pre-validation on the e-filing portal for a smooth refund process.
Q7. What happens if I miss the belated return filing deadline (December 31)?
If the December 31 deadline is missed, the taxpayer may request a Condonation of Delay from the Income Tax Department under certain conditions, including genuine hardship or refund eligibility.
Q8. What is the last date for filing a belated return for the assessment year?
The deadline for a belated return is December 31 of the assessment year or the assessment’s completion date, whichever comes first.
Q9. Are losses allowed to be carried forward if the return is filed late?
Losses under business income and capital gains cannot be carried forward if filed under Section 139(4). However, losses from house property can still be carried forward.
Q10. Can deductions under Chapter VI-A (like 80C) be claimed in a belated return?
Yes, Chapter VI-A deductions like Section 80C, 80D, etc., can be claimed. However, other specific deductions under Sections 10A, 80-IA, and so on, are allowed only if the return is filed by the due date under Section 139(1).
Q11. What are the tax implications for belated return filing?
Taxpayers filing belated returns are subject to interest under Sections 234A, 234B, and 234C for late payments, as well as late fees under Section 234F if applicable.
Q12. Can NRIs file a belated return under Section 139(4)?
Yes, Non-Resident Indians (NRIs) with income taxable in India can file a belated return under Section 139(4) if they missed the original deadline.
Q13. What documents are required to file a belated return?
The documents required are similar to regular returns, including PAN, Aadhaar, Form 16, income statements, and other relevant documents for income and deductions.
Q14. Can a belated return be filed for a prior financial year?
Yes, belated returns can generally be filed until December 31 of the assessment year, but returns for older financial years may require special provisions like the ITR-U form.
Q15. Is there a limit on the number of times a taxpayer can attempt to e-file a return?
There is no limit to filing attempts, but after multiple failed e-file attempts, the taxpayer should resolve any issues or submit a signed paper return to avoid processing delays.
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