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Belated Return for AY 2020-21: How to File Belated Return and Penalty on Late Filing

Updated on: 10 Aug, 2023 04:13 PM

The deadline for filing the income tax return (ITR) for the financial year 2020-21 was December 31st and the CBDT issued Rs 1,50,407 crores in refunds for those eligible. Did you miss your filing tax returns? Fret not! You still have the opportunity to file your income tax return. Yes, you can take advantage of belated income tax return filing to avoid income tax scrutiny.

In this blog, we have covered everything that you need to know about filing belated tax returns. Have a browse around!

What is a Belated Return?

The term “belated return” refers to income tax returns filed after the due date or extended due date. It is also known as a late or delayed return. The provisions of Section 139(4) of the Income Tax Act deal with the submission of late returns.

How to File a Belated Return

A belated ITR or belated income tax return is very easy to file. It is just like filing your regular return. All you need to do is to follow the steps here.

  • Choose the assessment year
  • Select the applicable IT form
  • Fill in your details
  • Submit the return after paying a late fee

Penalty For Filing Income Tax Return After the Deadline

You must be wondering if there is any penalty for the late filing of ITR. As the deadline for filing ITR has passed, the taxpayers, who will be filing their belated return will have to pay some penalty or late filing fee as per the income tax rules mentioned under 234F.

  • If income is less than Rs 5 lakh, the penalty for filing tax returns after the deadline is Rs 1000.
  • If your taxable income for the Financial year is more than Rs 5 lakh, the penalty payable is Rs 5000.
  • When your income does not fall under the taxable limit, you are not required to pay any penalty for filing ITR after the deadline.
Gross Total Income Late Filing Fee
Income is below the basic tax exemption limit Nil
Income during the financial year does not exceed Rs.5 lakh 1000
Income exceeds Rs.5 lakh during the financial year 5000

In addition to the penalty, it should be noted that you will have to pay the tax along with an interest @1% rate as per section 234A. Interest will be charged from the initial due date till the ITR is filed if the outstanding tax liability is 1 lakh or higher.

The deadline for AY 2021-22 was originally set for July 31, 2021. So, the interest in such cases will be calculated from 1 August 2021 till the date of filing the belated return.

However, if you do not fall under the taxable slab and want to file your ITR, then you will not be liable to pay any interest amount while filing your tax returns.

Income Tax: Belated Return Last Date

It can be filed before the end of the assessment year. The belated return for FY 19-20 and AY 20-21 can be filed till 31st March 2022.

Income Tax Refund on Belated Return

A common question that most taxpayers ask is: will I get tax refund on belated return? Yes, eligible taxpayers will get their refund for the extra tax deducted at different sources. Gather all your documents to assess the tax deducted from your sources of income to calculate whether you are eligible for refunds.

Relevant points regarding Delayed Return Filing

  • If filing a belated ITR, taxpayers must also pay penalty interest on any unpaid tax liability.
  • ITR filers who file delayed returns cannot carry losses forward under any income category (other than income from house property).
  • It is possible to carry forward the loss under the category of income from house property.
  • You can also revise your belated return if you have filed it incorrectly

If you haven’t filed your income tax returns yet, do it at the earliest without waiting till the last date. You can do it for free with our easy to use platform.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.