Last Date to File Belated ITR is December 31; Know What Happens if you Fail to File

Last Date to File Belated/Revised ITR: The last day of the year, December 31, will also be the last chance to file your income tax return (ITR). Most individuals who generated some income in the form of salaries, small businesses, and fees received for professional services, the last to file their ITR for FY 2021-22 on July 31 this year. However, in case you missed that, there is still a chance to furnish a return. This belated ITR and can be filed under section 139 (4) of the Income Tax Act, 1961.

A belated return can be furnished up until three months before the end of the relevant Assessment Year (AY). Since the AY ends on March 31, you have to file a belated return by December 31. In contrast to a regular return filed by July 31, a belated return has certain limitations. For instance, the losses cannot be carried forward, and there is a late filing fee of upto Rs 5,000 under Section 234 F. Additionally, taxpayers who miss out on filing the regular income tax returns will accrue an interest of 1 percent per month (or part of the month) for any amount of tax that remains unpaid.

However, the situation gets even worse if you miss out on filing a belated return, too. In such a scenario, it counts as non-filing of tax returns. When the taxes are not filed, the Income Tax department can send a notice, demanding the individual to pay a return on income within a stipulated time period. Income tax authorities also consider non-filing of taxes to be done with the motive of tax evasion. They can impose a hefty penalty for this under section 270A. Depending on the amount of tax evaded and the number of times this has happened, the authority can also initiate prosecution under section 276CC against the defaulting taxpayer.

If you are yet to file your income tax return, take some time out and fill in a belated return now.

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