Belated Income Tax Return: Penalty, Time Frame & Consequences

Belated Income Tax Return: Penalty, Time Frame & Consequences: A belated return is a term used for a tax return that is filed after its original due date. You have a specific window of time within which you can submit a belated return. This window is calculated as follows:

• You can file a belated return up to 3 months before the relevant assessment year ends.
• Alternatively, you can file a belated return before the assessment process for your return is completed, whichever comes first.

If an individual doesn’t file their income tax return by the set deadline (31st july for A.Y. 2023-24), there’s still an opportunity for them to do so. Under the provision called Section 139(4) of the Income Tax Act, they are allowed to submit a late or ‘belated’ return. This can be filed either up to 3 months before the conclusion of the relevant assessment year or before the formal tax assessment is finalized by the authorities, with the deadline being whichever of these two events happens first.

What is Belated Income Tax Return?

When an income tax return is not submitted by the designated deadline, it is considered a belated return. When you’re required to file an income tax return and you don’t submit it on or before the scheduled deadline, it’s referred to as a “belated return.” In other words, if you miss the original due date for filing your tax return, the return is considered late or delayed, and this lateness is termed as a “belated return.”

For Example: 

Individual Name: Ram
Original Due Date:  July 31, 2023
Assessment Year: 2023-24

Example Scenario:
Ram, an individual taxpayer, needs to file his annual income tax return for the assessment year 2023-24. The original due date for filing the return is July 31, 2023.

Original Last Date: July 31, 2023
Ram’s Action: Unfortunately, Ram was unable to complete and submit his tax return by July 31, 2023.

In this instance, Ram’s income tax return would be considered belated since he missed the initial deadline of July 31, 2023. Even if Ram submits his tax return after July 31 but within the allowable window, it will still be classified as belated.

Depending on the tax regulations, there might be consequences for filing a belated return, such as penalties or interest charges. This example highlights how failing to meet the specified filing deadline results in Ram’s tax return being labeled as belated.

Filing Timeframe for Belated Income Tax Returns and Recent Changes

A belated return refers to a tax return that a taxpayer can submit for previous financial year, but within a specific timeframe after the regular due date has passed.

The timeframe for submitting a belated return is determined by two factors:

• It extends up to 3 months prior to the end of the relevant assessment year. This means that you can submit a belated return within this 3-month window before the assessment year ends.
• Alternatively, you can submit the belated return before the assessment process is finalized. This refers to the completion of the tax assessment procedure by the income tax department.

As a result of the above considerations, the final deadline for submitting a belated return is set as the 31st of December of the relevant Assessment Year. This means that regardless of the specific assessment year, the absolute cutoff date for filing a belated return is December 31st.

Earlier, the taxpayers were given the flexibility to file a belated return either before the relevant assessment year ended or before the assessment process was completed, depending on which of these events happened first.

Starting from the Assessment Year 2021-22, there has been a modification in the time limit for filing a belated return. The time limit has been reduced by 3 months, which implies that taxpayers now have a slightly shorter duration to submit belated returns compared to previous years.

Missed Deadline ITR – What to Do Now?

Revised Belated Income Tax Returns: Understanding the Latest Regulations

Can a belated income tax return be revised? Yes, it can! If a taxpayer discovers any errors or omissions in their belatedly filed income tax return, they have the option to submit a revised return to correct these discrepancies.