Summary of this article
Taxpayers who have missed the due date can still file a belated return within the prescribed timeline under the Income-Tax Act.
However, filing after the deadline may result in additional costs, making it always advisable to complete the filing process as early as possible
The longer taxpayers wait, the greater the possibility of additional costs, delayed refunds and the loss of certain tax benefits.
Have you missed the July 31 deadline for filing your income tax return (ITR) for FY2025-26 and are worried about what will happen next? Relax. You need not worry much. According to tax experts, missing the July 31 deadline for filing a tax return does not mean the opportunity to file the ITR is lost.
Says Harsh Rustagi, consultant, Nangia & Co LLP: “Taxpayers who have missed the due date can still file a belated return within the prescribed timeline under the Income-tax Act, 1961. However, filing after the deadline may result in additional costs, making it always advisable to complete the filing process as early as possible.”
One of the immediate consequences of missing the ITR filing due date is the late filing fee. Where the taxpayer’s total income exceeds Rs 5 lakh, a late filing fee of Rs 5,000 is payable. For taxpayers whose total income does not exceed Rs 5 lakh, the maximum late filing fee is restricted to Rs 1,000. In addition, if any tax remains unpaid, interest may also be payable until the outstanding tax liability is discharged.
Adds Rustagi: “Missing the due date can have consequences beyond the late filing fee. In most cases, taxpayers who file a belated return lose the benefit of carrying forward certain losses of the said year, such as business losses and capital losses, to future years. This could increase the tax liability in subsequent years where such losses could otherwise have been set off against future income.”
However, taxpayers who are eligible for a refund can still claim it by filing a belated return, subject to the applicable provisions of the Income-tax Act. Filing the return without unnecessary delay can, therefore, help ensure that the refund is processed at the earliest.
“Even after filing a belated return, if any error has been discovered in such a return filed, the same can be revised within the prescribed time limit. This provides an opportunity to correct mistakes, such as omitted income including any foreign income as well as incorrect deduction claimed, including eligible foreign tax credit (available if any), incorrect foreign asset disclosures or any other clerical errors,” says Rustagi.
Further, if the taxpayer misses the aforesaid timeline of filing the belated and revised return, the Income-tax Act provides for filing an updated return subject to the conditions prescribed and payment of additional tax liability over and above the normal tax liability computed.
Here, it is important to understand the difference between a belated return, a revised return and an updated return. A belated return is filed after missing the original due date. A revised return is filed to correct mistakes in a return that has already been submitted, whereas an updated return can be filed wherein the taxpayer wishes to voluntarily update his/her taxable income after the timelines for filing or revising the return has expired. However, considering the same is subject to the satisfaction of conditions prescribed and payment of additional tax liability. As such, the same may not be suitable in every situation.
“The key takeaway is that missing the original filing deadline should not lead to further delays. The longer the taxpayer waits, the greater the possibility of additional costs and delayed refund, as well as the loss of certain tax benefits. Filing the return at the earliest, even after the due date, is generally the best way to minimise these consequences and remain compliant with tax laws,” says Rustagi.
