Introduction:-
Filing an Income-Tax Return (ITR) is a crucial responsibility for every taxpayer in India. It not only ensures compliance with the law but also enables individuals to avail of various benefits provided by the government. However, there are instances when taxpayers miss the due date for filing their returns. In such cases, they can file a belated ITR, but it's important to understand the consequences and procedures associated with this ITR filling process.
Consequences of Filing a Belated ITR:-
- Interest on Outstanding Tax: One of the primary consequences of filing a belated ITR is the accrual of interest on any outstanding tax amount. The interest is calculated under section 234A of the Income Tax Act and is levied at the rate of 1% per month from the due date of filing (i.e., after the original deadline) until the date of actual filing.
- Loss of Certain Deductions and Carry Forward of Losses: Taxpayers filing belated ITRs lose the privilege of carrying forward certain losses, such as capital losses or business losses, to subsequent years. Additionally, they may not be able to claim deductions under sections like 80C, 80D, and others.
- Ineligibility for Revised Returns: In case of errors or omissions, taxpayers who file belated ITRs cannot revise their returns. The option to revise is only available to those who file within the original due date.
- Penalties and Scrutiny: If the tax authorities discover any discrepancies or under-reporting in a belated ITR, it may lead to penalties and increased scrutiny.
Procedures for Filing Belated ITR:-
- Access the Income Tax e-Filing Portal: Visit the official Income Tax Department's e-Filing portal and log in with your credentials.
- Select the Appropriate ITR Form: Choose the relevant ITR form based on your sources of income and fill out the required details.
- Provide Financial Information: Enter all financial details, including income from various sources, deductions, and exemptions.
- Calculate Tax Liability: Compute your total tax liability after accounting for deductions and exemptions.
- Pay Outstanding Tax: If there is any outstanding tax, make the payment online through the e-Filing portal.
- Submit the ITR: After reviewing all the information, submit the ITR.
- Verification: Once submitted, the taxpayer needs to verify the ITR using any of the prescribed methods such as Aadhaar OTP, EVC through net banking, or sending a signed physical copy to the Centralized Processing Center (CPC).
- Acknowledgement Receipt: After successful verification, an acknowledgment receipt is generated. This receipt should be retained for future reference.
Conclusion:-
Filing a belated ITR is an option available to taxpayers who miss the original deadline. However, it's crucial to be aware of the consequences associated with it, including the accrual of interest, loss of deductions, and potential penalties. The process for filing a belated ITR is straightforward and can be done through the official e-Filing portal. Nonetheless, it's advisable to file returns within the original due date to avoid these repercussions and ensure compliance with tax regulations.