Belated return (Section 139(4))

Every Individual whose income exceed the exempted limit, is required to file Income tax return within due date.

Every year 31^st july of the assessment year is the due date for filling income tax return in case of salaried individuals and self-employed (who are not required to be audited under income tax law or any other law).

In case of companies, any person /Working partner of firm whose accounts are required to be audited under the income tax law or any other law; 30^th September of the assessment year is the due date for filling Income tax return.

Belated return (Section 139(4))

Taxpayers who unable to file return within due date can file belated return within one year  from  the end of assessment year relevant to previous year or before completion of assessment u/s 142(1), whichever is earlier.

Thus for the F.Y 2015-16, assesse can file belated return by March 31, 2018.

Consequences of belated return

Ø Penalty for filling belated return

If the return is filed after the end of assessment year  (after  31^st March 2017 in case of return of FY 2015-16) then assessing officer may impose penalty up to Rs. 5000/- under section 271F.

Ø Interest

Interest under section 234A @1% per month or part thereof is required to be paid for delay in filing the return of Income.

Ø Belated return can’t be revised

Belated return once filed can’t be further revised for any omission or error in return.

Ø Unable to carry forward/setoff losses

If there is loss under the head of ‘capital gain’ and ‘profit and gain of business or profession’, then it can’t be carry forward and adjust against future profits in case of belated return.

Ø Tax refund without interest

If there is tax refund, then the assesse would not be able to receive interest on that refundable amount in case of belated return.

Condonation of delay in filing refund claim and claim of carry forward losses (Circular No9/2015, Dated 9-6-2015)

Taxpayer is allowed to file ITR to claim Income tax refund or file loss return upto 6 years under certain conditions vide circular no. 9/2015.  However, such returns would only be accepted after a letter for condonation of delay is filed with Income tax department and the same has been duly accepted by the income tax officer.