Section 139(4) of Income Tax Act - How to File Belated Return?

What is a Belated Return?

When an individual fails to file their income tax return by the ITR filing due date, i.e., 31st July every year and has to file it post this date, then such return is known as a belated return. A belated return is a return that has to be filed after the original due date. However, it has to be filed before 31st December every year.

While the above-mentioned deadline is true for individuals who don’t have to get their books audited, individuals to whom the audit applies have to file ITR by 30th September. Any return filed after the prescribed deadline is known as a belated return and is filed under section 139(4). Filing a belated return can also come with penalties and additional interest on taxes,

Who can File Belated Return u/s139(4)?

Income Tax Return Filing is mandatory under the following conditions -

• If an individual’s total income is more than Rs.2,50,000.
• You have deposited an amount exceeding Rs. 1 crore during a financial year in a current account held with a cooperative bank or a bank.
• If you have spent more than 2 lakhs on foreign travel in the relevant year.
• Your total electricity bill exceeds Rs.1 lakh.

In simple words, any assessee who is required to file an ITR but fails to do so is eligible for filing a belated return. You have to select section 139(4) while filing the ITR.

What are the Consequences of Late ITR Filing?

If you fail to file your ITR by the prescribed due date, you might have to face the following consequences.

Interest Penalty u/s 234A

The taxpayer has to pay simple interest at the rate of 1% per month or a part thereof for delayed ITR filing u/s 234A. The interest is calculated from the due date of ITR filing to the actual date of filing. Therefore, the longer you wait before filing your ITR, the more interest you have to pay.

Late Filing Fees 234F

The maximum late filing penalty is Rs.5000 u/s 234F

• If the total taxable income during the year is more than Rs. 5 lakh, then the penalty levied is Rs.5000.
• If the total taxable income during the year is less than Rs. 5 lakhs, then the penalty levied is Rs.1000.
• And if the total taxable income is less than Rs.2.5 lakhs, then no penalty is levied.

What are the Limitations of Filing a Belated Return?

Along with paying penalties, there are a few other limitations when filing a belated return. These limitations are listed below -

• You cannot carry forward any losses from the head business/profession and capital gains. However, the losses from the head ‘house property’ and unabsorbed depreciation can be carried forward in the case of belated returns.
• Some deductions are also disallowed u/s 10A, 10B, 80IA, 80IB, 80IC, 80ID, and 80IE.
• Taxpayers can also lose interest on refund u/s 244A if the delay happens due to late ITR filing.
• Taxpayers cannot switch regimes while filing a belated return. However, if you have already filed an ITR before 31st July, then you can file a revised return and switch regimes.

How to File a Belated Return?

Tax2win offers two types of itr filings:-

Step 1: Either sign in to the tax2win website using your existing credentials or sign up to the portal and create an account. You can do self-filing only in the case of income from salary, business, and capital gains.

Step 2: After logging in, a table consisting of all the possible sources of income opens. You need to select the income sources that you have. Based on your sources of income, Tax2win’s DIY ITR filing system selects the applicable ITR form automatically.

Step 3. You need to upload Form 16. In case you don’t have Form 16, you can simply skip the option and proceed further.

Step 4. Select the F.Y. and enter the PAN Details and DOB. (If you don’t have a registered account with Income Tax Department, you will receive an OTP, and a new account will be created.). You can also choose if you want our DIY software to fetch your personal details and get data pre-filled.

Step 5: Enter a few basic details in the next step. Some of it is pre-filled from the Income Tax Department’s database. Remember to cross-check the information available. As shown in the image given below, you have to enter your personal details like name, email id, date of birth, father’s name, gender, etc.

Step 6: In the next step, you have to provide your address details and employer category. You can refer to the image below to understand this better.

Step 7: In the next step, you have to fill in your employment details. The standard deduction is applied automatically in the case of salaried employees. As shown in the image below, you have to enter your gross salary/CTC, exempted allowances like HRA, LTA, gratuity,, and and professional tax. Note that if you have uploaded Form 16, your employment data will be pre-filled in the ITR Form. All you have to do is verify the information and proceed to file ITR.

Step 8: Enter the details of the investment made during the year to calculate the applicable deductions. You have to enter details of investments in PPF, LIC, PF, housing loan, FDR, NSC, tuition fees, premiums paid to the annuity, and other 80C deductions.

Step 9: In this step, you are required to enter your bank details. Enter your IFSC code, name of the bank, account number, and Aadhaar details. As per government law, it is mandatory to show all the bank details. You can select one account as the primary account. Remember, you will get a TDS refund in your primary bank account.

Step 10: In this step, you have to upload Form 26AS, and your TDS details will be auto-populated. If you don’t have Form 26AS, you can skip it and fill in the details manually before filing your ITR. If you have paid the tax, select yes on Advance Tax and self assessment tax payment a, enter the details from the receipt generated, and click on Continue.

Step 11: Select ‘No’ on the option ‘Are you filing a return under the seventh proviso to section 139(1)? Also, enter the unique number/document identification number and receipt date of the notice, and click continue.

Step 12: Based on the information given by you in the previous sections, the software automatically computes your tax liability using both the old and the new regime. You can compare both regimes. However, you cannot change your regime in the case of a belated return.

Step 13: Remember to cross-check all the information in return, click on the checkbox and click on “File my return.”

Hope this article helped you understand all about belated ITR filing. If you have not filed your ITR and missed the deadline, don’t worry, you can still file a belated return with Tax2win in just a few steps. Tax2win’s e-filing portal is extremely easy to use and pre-fills most of your data, making it less time-consuming and effortless. And if you need CA assistance, you can also book an eCA from Tax2win. File your belated return Now!