Missed December 31 Deadline To File Belated Tax Returns? Know What To Do

If you have missed December 31 deadline for filing your belated tax return, then you have the option to file an updated ITR, a new option announced in the Budget 2022

The taxpayer will be liable to pay 25 per cent additional tax on the tax dues if ITR-U for FY21-22 (AY 2022-23) is filed within the first relevant assessment year — ie. between April 1, 2023, and March 31, 2024.

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The deadline for filing your belated tax return was on December 31. Most individuals who had income from salaries, small businesses, and professionals were required to file the ITR for the financial year (FY) 2021-22 on July 31, 2022.

Individual taxpayers (other than those subject to tax audit), who could not file their Income Tax Return (ITR) before the due date of July 31, 2022 had the option to file returns by December 31, 2022 by paying a fine of up to Rs 5,000 as a late fee for filing it late, which would get doubled or up to Rs 10,000, after the end of 2022.

What's belated ITR?

A return that is furnished after the due date is called a belated return. A belated return of income is furnished under Section 139 (4) of the Act, at any time till three months before the end of the relevant AY, or before completion of the assessment, whichever is earlier. It means a belated return could have been filed by December 31, which is three months before the end of the AY, i.e., March 31.

However, after December 31 of the AY, you may not be able to voluntarily file ITRs. You will then need to request the IT department for permission to file, or, if and when the IT department picks up your income and tax details for scrutiny, you will be told about the next step.

There is also an option to file an updated ITR announced in the Budget 2022 incase you missed the last date to file a belated ITR. 

What's updated ITR (ITR-U) return?

An updated ITR (ITR-U) can be filed irrespective of whether an individual has filed an original, belated or revised ITR or has completely missed filing the form in a particular financial year.  Also, note that ITR-U cannot be used to show a loss return, claim income tax refund and so on.

"An updated income tax return can be filed only after the end of the relevant assessment year. Hence, if you do not file a belated ITR now, then you will be allowed to file an updated ITR from April 1, 2023," according to Ruchika Bhagat, chartered accountant and MD, Neeraj Bhagat & Co as quoted in the Economic Times report.

Moreover, the taxpayer will be liable to pay 25 per cent additional tax on the tax dues if ITR-U for FY21-22 (AY 2022-23) is filed within the first relevant assessment year — ie. between April 1, 2023, and March 31, 2024. However, if the same is filed between April 1, 2024, and March 31, 2025, then 50 per cent additional tax of the tax dues must be paid.

The updated return can be filed if the individual has not filed any ITR earlier and have no pending income tax dues. The person will need to pay a penalty for the late filing of the return under Section 234F, according to Bhagat.

An individual can also file an updated return if they have not filed any ITR earlier and have no pending income tax dues. However, the person will have to pay a penalty for the late filing of the return under Section 234F, says Bhagat.