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What If I Miss ITR Deadline of 31st August

Updated on: 23 Nov, 2023 01:22 AM

When it comes to filing Income Tax Return, we are always told to file before 31st August (i.e. the deadline). Then we are told, what to do next, if we miss ITR deadline. But have you ever wondered, what are the consequences if I miss ITR deadline?

Well to solve your query, we bring a list of outcomes if you miss ITR deadline. So buckle-up your seat-belts coz it's gonna be a fun ride!

Section 234F

New section 234F is literally the most discussed topic among all the taxpayers. And why it shouldn't be? Unlike last year (i.e. 2016-17) where a taxpayer could file ITR till end of relevant AY. But from 2017-18, new Sec 234F levies late ITR filing fee.

If you miss ITR deadline, then be prepared to pay late fee of ?5,000 (if return is filed after 31st August but up to 31st December). And ?10,000 if ITR is filed after 31st December. Although, if your total income is up to ?5 lac then late filing fee will be ?1,000. So you better not miss ITR deadline if you don't want to Sec 234F late fee.

Section 234A

Sec 234A of the Income Tax Act imposes interest on late filing or non-filing of income tax return.

As per this section, if you miss ITR deadline & there is an outstanding tax liability then simple interest @ 1% per month will be levied on you. This interest will be calculated from the due date of ITR till the date it is actually filed.

You can know more about Sec 234A in our blog.

Section 270A

Section 270A lays down provision for penalty on less disclosure or non-disclosure of income. If there is non-disclosure then penalty @ 200% of the tax amount will be levied. In case of other circumstances, penalty is levied @ 50% of the total tax amount.

To know what amounts to non-disclosure & other relevant details of sec 270A, please refer our blog.

Notice u/s 142(1)

Do you love income tax notice? Silly question na? Well you need to ask this question from yourself. Because income tax department will surely send you a notice u/s 142(1) if you miss ITR deadline. Sec 142(1) notice is also called inquiry before assessment notice.

In this notice, the Assessing Officer (AO) will ask you to file ITR where it is not filed within the normal time limit. Ignoring this notice could bring troubles for you in the form Best Judgement Assessment u/s 144, Prosecution u/s 276CC etc.

For detailed reference on 142(1), you can refer our guide.

Losses Not Allowed To Set-Off & Carry Forward

Suppose in a FY, you have incurred loss under any head & it is not completely set-off with other heads income. In that case, you can carry forward such excess loss only if the ITR is filed within time. Also, to claim benefit of setting-off current year's loss with current year's income, ITR needs to file within time.

In simple words, if you miss ITR deadline then excess loss will not be allowed to be carried forward. But this provision is not applicable to loss under head house property.

Section 148 Notice

Sec 148 notice can be issued by the A.O. if you have not filed Income Tax Return. Through this notice, you will be asked to file ITR within the specified time.

Any failure on your part to comply with the directions can result in a penalty of ?10,000. Apart from that, penalty u/s 270A & prosecution for tax evasion can be placed on you.

No Income Tax Refund

We all know about the concept of TDS & how we can claim credit of such tax paid while filing ITR. Sometimes it may happen that your actual tax liability is less than the total amount of TDS. In such case, you become eligible for income tax refund & sometimes also for interest.

Now, if you miss ITR deadline then you will not be get back this amount of refund. In addition to refund, you will also lose benefit of interest (if refund is released by department after certain period).

Know about your income tax refund status live using our online refund status tool.

What to do if I miss ITR deadline?

If you still miss ITR deadline, then it is advisable to file belated return. You can file belated return by the end of relevant AY or before the completion of assessment, whichever is earlier.

For the FY 2017-18, if you have missed deadline of 31st August, 2018. Then file your belated return anytime before 31st March, 2019. But yeah, you still need to pay the penalty like Sec 234F etc as described above.

What if I miss ITR deadline of 31st March as well?

If you miss the deadline of filing belated return for FY 2017-18 (AY 2018-19) i.e. 31st March, 2019. Then you need to file Condonation of Delay request with Income Tax Department.

Income Tax Act has a provision where you can file this request within 6 years from the end of relevant AY. In case of FY 2017-18 (AY 2018-19), the time limit for Condonation of Delay request is till 31st March, 2024.

It is important to note that, even though such provisions exists, you still need to have a genuine & strong reason for being late in ITR filing. Otherwise no such relaxation will be provided by the department.

File your Income Tax Return with Tax2win

With the last date of filing ITR few days away, there is no time left to waste. Missing ITR deadline will become costly for you, hence it is highly recommended to file tax return today.

To save taxes & filing ITR on time, you can purchase our eCA assistance plan at minimal rates. You also have the option to file income tax return for FREE through our website.

File now, file today! Happy filing ????

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.