Belated ITR Deadline: If you are an income taxpayer, this news might be important for you. The last date for filing income tax returns was December 16th. The Income Tax Department had previously set this deadline as July 31st. Filing income tax returns is mandatory every financial year. However, due to various reasons, many income taxpayers are unable to file their taxes on time. To provide relief to such individuals, the Income Tax Department has provided the facility of filing a belated return. The deadline for this belated income tax return is December 31st.
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Why is the option of a belated return provided?
Under Section 139(4) of the Income Tax Act, there is a provision for belated returns. According to this, if a taxpayer is unable to file their income tax return within the stipulated time, they can file an ITR through a belated return. This facility is provided to taxpayers who, for some reason, were unable to file their returns on time.
Disadvantages of filing a belated return
According to tax experts, it is always best to file returns within the stipulated time. This facility is only provided in exceptional circumstances. Filing a return late also incurs a penalty. Several benefits are also forfeited. The facility for adjustments also becomes unavailable.
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How much will the penalty be?
If you are a taxpayer and your total income is up to Rs. 5 lakh, a penalty of Rs. 1,000 will be levied for filing a belated return. If the total income is more than Rs. 5 lakh, a penalty of Rs. 5,000 is levied. In addition, if there is any outstanding tax, interest at the rate of 1 percent per month has to be paid. The interest is calculated from the deadline to the actual date of filing the return.
File returns only under the new tax regime
Some specific options are also provided for filing a belated return. For example, if a taxpayer incurs a business loss, they cannot carry it forward to the next year. Similarly, losses from house parties are also not allowed to be carried forward. Furthermore, taxpayers who file belated returns do not have the option of choosing the old tax regime. Therefore, it is necessary to file returns under the new tax regime.