Belated Return under Section 139(4): Due Date, Penalty, & How to File ITR After Due Date

What is a Belated Return Under Section 139(4)?

When an individual fails to file their income tax return by the ITR filing due date, 31 July, they have the option to file a late return with penalties, known as a belated return. A Belated Return is filed after the July 31 deadline for the current assessment year and must be submitted before December 31 of the same assessment year. While there are consequences for late filing, it's better than facing penalties for non-compliance.

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 30 September. Any return filed after the prescribed deadline is known as a belated return and is filed under section 139(4) of the Income Tax Act.

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Eligibility Criteria for Filing a Belated Return

There are no specific eligibility criteria based on income level or tax liability. As long as you were supposed to file a return in the first place, you can file a belated return even if you missed the deadline.

Income Tax Return Filing is mandatory under the following conditions -

• If an individual’s total income is more than Rs.2,50,000 (old regime) and Rs. 3,00,000 (new regime).
• 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) of the income tax act while filing the ITR.

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What is the penalty for filing a belated ITR?

Late filing fees 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 below the basic exemption limit (i.e. 3 lakh), no penalty is levied.

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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.

Delayed Refunds

If there is an income tax refund due, then tax refund will be payable only if the ITR is filed and verified.

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

• 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 below the basic exemption limit (i.e. 3 lakh), no penalty is levied.

Loss of Carry Forward Benefits

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.

Notice from Tax Department

Delayed filing can lead to notices from the tax department, causing unnecessary stress and hassle.

Interest on Unpaid Taxes

Besides the penalty, you will also be liable to pay interest on any tax that remains unpaid after the due date. This interest is calculated at a rate of 1% per month or part of a month on the outstanding tax amount.

Choosing tax regime

Individuals cannot opt for the old tax regime while filing a belated ITR for AY 2024-25. The option to file ITR under the old tax regime will not be available from August 1, 2024, for FY 2023-24 (AY 2024-25), i.e., for taxpayers who missed the due date of filing and want to file a belated income tax return.

This will result in a higher tax burden under the new tax regime and the loss of the ability to claim deductions and exemptions under the old tax regim.

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How to File a Belated Return Online?

Tax2win offers two types of ITR filings:- DIY ITR filing and eCA-assisted ITR filing

Step 2: Once you choose the option to file ITR yourself (DIY filing). 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. If you have Form 16 available with you, upload it so that the details can be detached and you need not to enter manually. 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 the 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, enter the details from the receipt generated, and click on Continue.

Step 11: Tax2win platform offers you the ITR details option where you have to select from the drop down, which ITR you want to file. In this case if your want to file belated return, simply select porignal return.
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. From FY 2023-24, you cannot change your regime in the case of a belated return.New Tax regime is the defaulted tax regime.

Step 13: Once you continue, you will be directed to the payment amount due page.This information contains details of any tax liability you need to pay plus the penalty applicable on you for late filing.

Step 14: Clicking on Pay Tax Online will direct you to e-filing portal where you have to pay the penalty amount. You can learn the process here:- https://www.youtube.com/watch?v=S5OmiUzPip8

Step 15: Once the amount is paid, click on prepaid taxes tab wherein you have to provide the information of any tax paid directly to the government via Challan 280.

Step 16: Once you have paid all the liability and penalty amount, you can file your ITR easily with Tax2win.

If you find self-filing complicated, you can opt for the second option at Tax2win: eCA assisted tax filing, wherein the tax2win tax experts help you with filing belated return accurately. Connect Today.

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How to File a Belated Return Offline?

To file your income tax return offline, download Offline ITR Preparation Utility and prepare the ITR. Once done, upload .json file and proceed to verification.

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Missed Filing ITR for Previous Financial Years? Here Are Your Options

1. Apply for Condonation under Section 119(2)(b):
   Condonation of delay in filing ITR is a special relief provided by the Income Tax Department to the taxpayers for late filing or verification of ITR. Every assessee or taxpayer must submit the Income Tax Return and Complete its verification by a specific date. The last date for filing ITR in India is 31st July. However, if the taxpayer fails to file the ITR within the specified time limit, he might face heavy penalties.
   sCondonation of delay in filing ITR is a special relief provided by the Income Tax Department to taxpayers who file or verify their ITR late. To avail of this benefit, the assessees must file a request for condonation of the delay in filing ITR over the e-filing portal. Then, if the income tax officers deem fit, they can accept the request and give the taxpayer a second chance to file the ITR. Read more here.
2. File an Updated Return under Section 139(8A)
   The concept of ITR U, the updated return, was introduced in the union budget 2022 to allow individuals to rectify the mistakes they made while filing the ITR or to allow one more chance to file who miss the deadline. Read more here.

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What to Do If You Receive a Late Payment Notice?

If you receive a late payment income tax notice, here’s what you should do:

1. Review the Notice Carefully: Check the details in the notice for accuracy, including the amount mentioned and the period it covers.
2. Verify Your Records: Cross-check the notice against your records to ensure that the payment was indeed late and that there were no errors on your part.
3. Calculate Penalties and Interest: Understand the penalties and interest charges that may have accrued due to the late payment. The notice should provide details, but you can also use online calculators provided by the tax authorities for an estimate.
4. Pay the Outstanding Amount: If the notice is correct, make the payment as soon as possible to avoid further penalties or interest.
5. Respond to the Notice: If you believe the notice is incorrect, or if you have already made the payment, respond to the notice with evidence of your payment or a detailed explanation.
6. Consult a Tax Professional: If you’re unsure about any aspect of the notice or how to respond, consult a tax professional for guidance.

Tax filing seems complex? Hire tax2win tax experts who just not help you with filing taxes accurately. Online CA at Tax2win also helps you with respondig and resolving tax notices. Book tax expert today.

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