Under Section 139(4) of the Income Tax Act, 1961, taxpayers can now file belated returns by 31st December of the assessment year or before the completion of assessment, whichever is earlier. This can be from the end of the relevant assessment year or prior to the conclusion of the assessment, whichever is earlier.
Income tax authorities provide you with a due date for filing ITR. Hence, if you miss the deadline or receive a notice under Section 142(1), file a belated return under Section 139(4) for your income tax return.
The following situations necessitate the submission of an income tax return:
If an individual's total income exceeds the basic exemption limit (₹2.5 Lakhs for individuals below 60, ₹3 Lakhs for senior citizens, and ₹5 Lakhs for super senior citizens under old regime)
Even if your total income is below the taxable limit, you must file ITR if:
-You deposit over ₹1 Crore in a current account in a financial year
-Your electricity bill exceeds ₹1 Lakh in a year
-Your foreign travel expenses exceed ₹2 Lakhs
-Your business turnover exceeds ₹60 Lakhs or professional receipts exceed ₹10 Lakhs
Here are a few limitations of filing a return u/s 139(4):
Carry forward of losses restricted under the heads ‘capital gain’ and ‘business and profession’
Penalties and interest must be paid on late returns
Interest on refund under Section 244A may be reduced or disallowed if returns are filed late
Taxpayers submitting a late return cannot switch their tax regime.
If you miss the ITR deadline, you cannot choose the new tax regime (Section 115BAC) while filing a belated return. You must stick with the regime chosen in the original timeline.
Different types of entities are required to file returns under special provisions:
139(4A): Religious or charitable trusts if income exceeds the threshold
139(4B): Political parties exceeding the exemption threshold
139(4C): Institutions claiming tax exemptions under Section 10 (e.g. hospitals, funds, authorities)
139(4D): Educational institutions not filing under other clauses
139(4F): Investment funds under Section 115UB
The following repercussions will apply if a return is filed after the deadline for filing ITR:
Assessee is accountable to pay penal interest u/s 234A
Assessee is responsible for paying the Section 234F late filing fee
In case the total revenue is under ₹5 Lakhs, the late filing fee cannot be more than ₹1,000. However, if the ITR is submitted after the last date, as mentioned in the notice issued u/s 139(1), the following consequences may be applicable:
If your total income exceeds ₹5 Lakhs, ₹5,000 late fee applies if filed after the due date but before 31st December of the assessment year.
If total income is below ₹5 Lakhs, the late fee is limited to ₹1,000.
Aside from these repercussions, deductions under the following sections will not be applicable if the return is submitted after the deadline:
Sections 10A and 10B
Sections 80-IA, 80-IAB, and 80-IAC
Sections 80-IB and 80-IBA
Section 80-IC
Section 80-ID
Section 80-IE
Sections 80JJA and 80JJAA
Section 80LA
Sections 80P and 80PA
Section 80QQB
Additionally, carry forward of some losses is not allowed if the return of loss is made after the deadline. However, if a return is filed late and such a claim is made, the CBDT has the authority under section 119(2) to excuse the delay.
Filing late may lead to scrutiny notices and affect your loan eligibility, visa approvals, or participation in government tenders. Ensure timely compliance to avoid these setbacks
In such cases, taxpayers usually file an old return while responding to the income tax notice. However, an individual should take prompt action to address the issue.
Here are some steps they could take:
1. Review the Notice
Carefully examine the late payment notice to understand the specific details, including the outstanding amount, the due date, and any associated penalties or interest.
2. Verify the Information
Cross-verify the details mentioned in the notice with your records to ensure accuracy. Mistakes can happen, and it's essential to rectify any discrepancies.
3. Payment of Outstanding Amount
If the notice is accurate, make arrangements to pay the outstanding amount as soon as possible. Timely payment can help minimise further penalties and interest.
4. Communication with Tax Authorities
In case there are genuine reasons for the delay or if you faced difficulties in making the payment, consider reaching out to the tax authorities. Some jurisdictions provide options for installment payments or may consider waiving penalties under certain circumstances.
5. Seek Professional Advice
If the situation is complex or if you are unsure about how to proceed, seek advice from a tax professional. They can guide you on the best course of action and help you navigate the process.
6. Prevent Future Delays
Take proactive measures to prevent future delays in tax payments. Set reminders for due dates, explore electronic payment options, and keep your financial records organised.
In addition, you must keep the following factors in mind when dealing with delayed ITRs:
Following FY17, a belated or delayed return can be revised
Losses from residential property can be carried forward despite filing the returns late
With regard to the last point, keep in mind that certain losses cannot be carried forward if they belong to years for which returns were not filed.
E-Verification Reminder
All belated returns must be e-verified within 30 days of filing, either through Aadhaar OTP, net banking, or offline DSC. Without e-verification, the return is treated as invalid.
FAQs
What is income tax Section 139(4)?
Section 139(4) of the Income Tax Act, 1961, states provisions on belated ITR filing. To put it simply, it provides guidelines on filing ITR after the due date.
Can you revise belated returns?
Yes, you can review the ITR filed under Section 139(4).
Can you file your IT return after your due date?
Yes, you can file your income tax return after the due date. However, it will be considered as belated filing and late filing fees shall be levied.
Can a tax return be claimed for a belated return?
You can claim tax return when filing a late return under Section 139(4). The refund will be directly credited to the bank account that is listed on your ITR. You facilitate the simple processing of a refund, make sure to pre-validate your bank account.
Am I supposed to verify my belated return under this section electronically?
Yes. A taxpayer must electronically validate any belated returns submitted after the deadline. It must be e-verified before the I-T Department may process it.
Can I file a revised return after one year?
Belated returns can now be revised under Section 139(5) before 31st December of the relevant assessment year or before completion of assessment, whichever is earlier.
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