Mumbai, July 30: As July comes to an end, people are sure to struggle to put together relevant documents and file for their Income Tax Returns. While most people try to meet the July 31 deadline for filing one’s ITR, there are some who miss it and are left with one big question - What is the process of late filing of an ITR or Belated Return?

While it is advisable to file your tax returns before the deadline, it is very much possible to file your ITR after July 31, but there is a different process that one has to follow. As we inch closer to the July 31 deadline, here is everything you need to know about the late filing of ITR, the penalty for late tax return filing and all other information about ITR filing for FY 2023-24. ITR Filing Last Date 2024 Nears, Know How To File Income Tax Returns Before Deadline Ends.

What Is Belated Return?

If you missed the filing deadline of July 31 for the income tax return for a financial year, you can still go ahead with the return filing by 31st December of the assessment year. This is known as Belated Return. The ITR you are filing this year is for the financial year 2023-24 and the belated returns can be filed till December 31, 2024.

This is due to the amendment that was made through the Finance Act 2021, which reduced the timeline of filing the belated return. Based on the revised rules, you can file the belated return three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. How To File ITR Using Form 16: Step-by-Step Guide To Ensure Error Free Last-Minute Income Tax Returns Filing.

How To File Late ITR in Assessment Year 2024-25

The late filing of ITR can be done in a similar manner to regular ITR filing. One main difference is the ITR form you need will change from Section 139(1) to 139(4). The process on the Income Tax Portal otherwise remains the same online. Alternatively you can also file for Belated Return offline and directly upload the file under the section - File Income Tax Return u/s 139(4) for A.Y. 2022-23.

Penalties for Late ITR Filing

While you can file for ITR and pay your taxes late, with genuine reasons, it does come at a cost. According to Section 234F of Income Tax Act, 1961, people with an income of less than INR 5 lakhs have to pay a penalty of INR 1000, while those with an income of over INR 5 lakhs have to pay a penalty of INR 5000 over and above their taxes.

It is important to note that while the provision is available, paying your taxes and filing for returns within the prescribed deadlines will benefit taxpayers more. There are certain benefits that you might miss out on, due to delayed return filing. One of the most important benefits that late filers miss out on is they cannot carry forward losses from capital gains, business income, and other sources (except for losses from house property). We hope that you file your ITR within the July 31 deadline to avoid missing out on any benefits.

(The above story first appeared on LatestLY on Jul 30, 2024 12:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).