Filing income tax returns (ITR) is a crucial responsibility for every taxpayer. However, sometimes, individuals may miss the original deadline or discover errors in their filed returns. In such cases, the Income Tax Department provides the option of filing belated or revised returns. This article offers a detailed overview of these provisions, including deadlines, penalties, and the process involved.
Belated Return
A belated return is filed when a taxpayer misses the original deadline for filing their ITR. This provision is covered under Section 139(4) of the Income Tax Act.
Key Points:
Deadline: For the financial year 2023-24 (assessment year 2024-25), the last date to file a belated return is December 31, 2024.
Penalty: A penalty of up to ₹5,000 may be levied for filing a belated return. However, if the total income does not exceed ₹5 lakh, the penalty is reduced to ₹1,000. No penalty is applicable if the income is below the basic exemption limit (₹3 lakh).
Benefits: Filing a belated return allows taxpayers to avoid further legal consequences and maintain a clean tax record.
Shortcomings:
No Carry Forward of Losses: One of the major drawbacks of filing a belated return is that taxpayers may lose the opportunity to carry forward certain losses, such as house property losses, which can only be carried forward if filed on time.
Interest on Tax Due: If a taxpayer has outstanding taxes, interest is charged under Section 234A for late filing, and under Section 234B and 234C for non-payment or underpayment of taxes.
Revised Return
A revised return is filed when a taxpayer needs to correct errors or omissions in their original or belated return. This provision is covered under Section 139(5) of the Income Tax Act.
Types of Mistakes Corrected:
Revised returns are typically filed for the following reasons:
Omission of income (e.g., forgetting to report interest income).
Incorrect deduction claims (e.g., incorrect claims under Section 80C).
Mistakes inn tax computation (e.g., miscalculation of tax).
Inaccurate reporting of TDS or advance tax.
Carry Forward of Losses:
Unlike a belated return, a revised return allows the taxpayer to carry forward eligible losses, such as those related to business losses, capital gains, etc.
Refunds for Overpayment of Taxes:
If the revised return reflects a higher tax liability due to corrections, the taxpayer will need to pay the additional tax. If the revised return results in a tax refund, it will be processed by the Income Tax Department.
Key Points:
Deadline: The deadline for filing a revised return is the same as that of a belated return, i.e., December 31, 2024, for FY 2023-24.
Purpose: A revised return can be filed to correct various errors, such as incorrect income reporting, deductions claimed, or personal information.
Number of Revisions: There is no limit to the number of times a return can be revised, as long as it is done within the stipulated deadline.
How to File Belated/Revised Return
The process for filing a belated or revised return is similar to filing an original return. It can be done online through the Income Tax Department's e-filing portal.
Steps:
Visit the Income Tax e-filing portal.
Log in to your account.
Select the relevant assessment year.
Choose the appropriate ITR form.
Fill in the required details accurately.
In case of a revised return, select the option "Revised Return" and provide the original acknowledgement number.
Verify the details and submit the return.
Important Considerations
It is always advisable to file your ITR within the original deadline to avoid penalties and complications.
Ensure that you have all the necessary documents and information before filing your return.
If you are unsure about any aspect of filing a belated or revised return, seek professional assistance from a tax advisor such as KarrTax.in
Differences Between Belated and Revised Income Tax Returns
Conclusion
The option of filing belated and revised returns provides taxpayers with a valuable opportunity to rectify errors and comply with tax regulations. By understanding the provisions and adhering to the deadlines, taxpayers can ensure a smooth and hassle-free tax filing experience.
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